What Companies Buy Distressed Houses?
If you want to sell your distressed home, you will likely consider individuals as well as companies. However, companies are a better option because they can afford to pay the full price upfront in cash.
Companies that buy distressed properties are sometimes predatory and non-transparent. When choosing your buyer, make sure you research their business policies, financial situations, and reputation.
What is a Distressed Home?
A home becomes distressed for many reasons. Falling behind in your mortgage payments, failure to pay your property taxes, or avoiding federal tax payments can all result in a distressed home.
A home in disrepair is also considered distressed. Sometimes, homeowners cannot pay to maintain their properties, or they fail to pay their contractors.
A quick move, divorce, threat of foreclosure, or death of a home buyer can also force a short sale, which is easier when the home is considered distressed.
How to Find a Buyer
Most often, homeowners selling a distressed property want to sell as quickly as possible. Going through a realtor can take 2-3 months, more if the market is slow. In addition to the wait, you will need to pay your realtor a fee.
Instead, research local companies that buy distressed properties. The companies, usually called cash home buyers, often offer a quick turnaround, sometimes taking less than a month for everything, including closing.
The best way to find a cash home buyer is through word of mouth and google. Ask your friends and family if they have any recommendations, and look online for companies in your area.
Why Should You Sell To a Distressed Property Buyer?
The top reasons for working with a cash home buyer like Simple Sale are financial. However, there are many other reasons to choose a company that specializes in buying distressed homes over a private buyer.
- Distressed property buyers will pay you in full upfront. Many private buyers will need to take on a mortgage, which might delay the process. If the buyer fails to qualify for a mortgage, your sale will fall through, adding another month or two to the process.
- No need for an appraisal. Private buyers often prefer to purchase turn-key homes that are in top shape. Simple Sale will buy your house as-is for a slightly lower price, meaning you won’t need to pay for repairs.
- No open houses or staging. Often, homeowners looking to sell quickly have too much on their plate to organize multiple open houses. A cash home buyer will arrange one walk-through with you, saving you time.
- Benefit from their experience. Cash home buyers know the ins and outs of buying homes and can speed up the process. You might close within days instead of weeks.
- No closing fees. In traditional sales, the buyer is often responsible for up to 2% of closing fees. Simple Sale covers all the closing fees.
- Save time. Simple Sale will close on your house in 30 days or less.
Vetting My Buyer
Always do background research on your buyer before signing an agreement. Look up recent customer reviews on Google and the Better Business Bureau.
As a seller, you have the right to request proof of funds from your buyer. Although cash home buyer companies are more likely to have the funds available than a private buyer, it’s best to ask for confirmation in writing.
You should also speak with the company over the phone and arrange an in-person meeting. There are always internet scams lurking, and personal conversations can help weed out scammers posing as fake buyers.
Choosing a Buyer
After vetting your potential buyers, you’ll need to decide which one you want to work with. Although you’ll probably base some of this decision on who you prefer, you should take several practical matters into account.
Look into what fees you will need to cover. Simple Sale covers all closing fees, meaning you will receive the entire offer.
See how long the process takes. If you need to sell your home quickly, you don’t have time for a lengthy, drawn-out closing process. Look for a company that can help you fix any outstanding complications with your title or taxes.
Talk to the people at the company. Packing, moving, and selling a home is stressful, and you want to work with a supportive and helpful buyer.
If you need to sell a distressed home quickly in Florida, consider working with Simple Sale in Central Florida. Our team is welcoming and always ready to answer your questions whether you are selling a distressed home in Melbourne, Tampa, Orlando, or any other Central Florida area.
Simple Sale’s Process
Selling your house to Simple Sale involves four easy steps.
- Contact us by phone, email, or our online form. We’ll get back in touch with any questions and more in-depth information about our buying process.
- Set up a walk-through. We’ll do an appraisal of your home and give you an offer that day.
- Agreeing to an offer. Once you agree to our offer, we will start the selling process. We’ll help you sort out any liens, problems with the title, or judgments. Let us know your schedule, and we will do our best to work at your pace.
- Payment. With no closing fees to worry about, you’ll receive our payment in full.
How to Talk to Your Buyer
How you talk to your buyer and what your house looks like can influence the buyer’s offer.
Honesty is the best policy. When you speak with your buyer, you must reveal any structural or financial issues with the home. Before closing, your buyer will learn about any liens or judgments and might back out at the last minute. If you are upfront about the problems, your buyer can determine an offer based on the actual situation.
Tidy up. Before your walkthrough, put away clutter and clean the house. Clutter makes a room look smaller than it is. Pet hair or dirty dishes might affect the buyer’s opinion of your home. Don’t worry about making your house spic and span, but a little sprucing up can go a long way.
Make repairs. If you’re able to make repairs before selling, you will likely receive a higher offer. However, if you can’t afford repairs or don’t have time, Simple Sale will buy a home in any condition.
If you need to sell your distressed Florida home quickly, call Simple Sale in Central Florida today at (407) 338-4183 to set up a walkthrough of your property. We’re also available to answer any questions you have about selling distressed property with no obligation to sign a contract.
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.