3 Things to Know Before Selling a Distressed Home
Selling a distressed property comes with several unique challenges that traditional home sales don’t typically face. Major repairs, code violations, missed mortgage payments, and more put homeowners at risk of losing their home entirely.
Selling a distressed home can be a daunting task, but it will be less challenging if you learn more about your situation.
Here are three things you should know before attempting to sell your distressed home:
1. What’s Your Situation?
Be sure you understand your situation before listing your home.
Most distressed homeowners list their property at a high price without understanding that buyers today are well-informed about the housing market. Buyers can easily evaluate your property to see if they’re paying the best price. Keep this in mind and price your distressed home accordingly if you list it.
2. Consider Contacting a Distressed Home Buyer
Knowing your options when you’re selling a distressed home is only half the battle. If you’re facing foreclosure, you’re probably in a race against the clock. It may make sense for you to sell your home to an investor who can buy your house, paid in full. Make sure you find a qualified buyer and avoid buyers who’ll pay you in the form of a non-cash investment. When you deal with buyers who need to apply for financing or need to liquidate their assets, the home sale may take too long.
If you don’t have long before you will lose your home, reach out to a distressed home buyer like Simple Sale to see if they’re able to help you out of your situation.
3. Know Your Local Real Estate Market
Analyze the local housing market before listing your distressed property. Look at online sources like news sites and the MLS to see trends in your real estate market. You can also consult a professional real estate agent to give you insights into your local real estate market (a consultation with an agent may cost you a fee). This research will help you set a more strategic listing price compared to nearby distressed homes.
If you own a distressed home, you may want to consider selling with an agent, or to an investor. Selling a distressed home is far different from selling through traditional real estate channels and comes with its own unique challenges that may warrant the help of an expert.
Want to learn more about selling distressed? Get our eBook, “Everything You Need to Know When Selling a Distressed or Difficult-to-Sell Home.”
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Simple Sale encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.