To sell a home, property owners must have buyers who are interested. A great deal of work goes into finding these buyers, and individuals need to know where to best locate them. There are multiple ways to go about doing so, and the type of sale plays a role in this. Homeowners have options now. They no longer need to choose a real estate agent to list the property and sell it, although this does remain the preferred option of many. What other ways may a person go about selling a property they no longer want? Following are seven options every homeowner should consider.
Hiring a Real Estate Agent
The main reason many people choose to work with a real estate agent is they know they will get a large pool of potential buyers. The real estate agent handles the vast majority of tasks for the seller, allowing him or her to focus on other aspects of the move. This includes the paperwork associated with buying or selling a home, advertising the house and showing the property to potential buyers. He or she maintains a network of professionals to tackle chores that must be done before the home is sold, including inspectors, photographers, appraisers and contractors, so the homeowner doesn’t have to find these professionals, and the agent negotiates for the seller to ensure he or she gets the best price. Although this option does cost more than others available, numerous homeowners find this is the right solution for their needs. The expense of closing costs, agent fees and more are worth it to the individual disposing of the property, thanks to the lack of hassle associated with choosing this option.
For Sale By Owner
Owners retain the right to sell their own property. Obviously, this allows the property owner to keep more of the money that is made from the sale, yet there are drawbacks to choosing this option. There are limited marketing opportunities when a person chooses to go this route, thus the process can be slow. To better improve the chances of more people seeing the property, set up a website dedicated to the sale of the home and share it on various marketing channels. Be sure to ask friends and family to do the same. Furthermore, don’t overlook the simple step of putting a sign in the front yard. This alone may draw in people who otherwise wouldn’t know the property is for sale. Other ideas including posting the home on Craig’s List, LetGo and other popular sale sites.
Rent to Own
Seller financing is a great way to bring more potential buyers to a home. Many individuals lack the credit needed to obtain traditional financing, but would love to own their own property. With the help of a rent to own plan, they can do so. The buyer benefits when this option is selected, as he or she can live in the home and make sure it meets their needs before making a purchase. Doing so also allows him or her to lock in the purchase price before housing prices rise. The seller likewise benefits as he or she can put a higher price on the property, thanks to the added flexibility of the rent to own option offered. The property generates income for the owner, and the renter is invested in maintaining the property, as he or she may choose to buy it in the future.
Homeowners must never overlook the option of selling the home at auction. In fact, many individuals are surprised to learn that homes sold in this way bring in more money than the original asking price 11 percent of the time. Auctions take little time and there is no hassle involved, as potential buyers only have a few hours before the sale to examine the property. The buyer is buying at his or her own risk, thus the owner doesn’t have to worry about problems down the road, and a professional auction company does all the work. The seller simply collects the money when the process is complete and closing has taken place.
Be sure to consider all options when this method is selected. Don’t simply focus on those companies that advertise regularly in the community. Consider real estate investors, visit real estate auctions and speak to potential cash buyers and talk with local construction companies to discover if any are looking to purchase a rehab. The more potential buyers that are aware of a property, the more likely it is the seller will get a price he or she is comfortable with.
Homeowners looking to sell a property quickly may choose to enter into an equity sharing agreement. With this type of arrangement, the homeowner and investor partner to fix up the home. As the home is being rehabbed, the investor pays the mortgage and continues to do so until the work is complete and the home is sold. The homeowner then gets a previously agreed upon portion of the equity. This arrangement also works when a homeowner gets behind on his or her payments. Entering into an equity sharing agreement can help to prevent foreclosure and allow the owner to move forward with life while the investor takes over the property and works to sell it for a profit.
Donating a home to a charitable organization allows the homeowner to take advantage of financial benefits while giving back to his or her community. When this method is used, the tax deduction available to the owner is based on the property’s current market value, not the original purchase price. Furthermore, the donor may be able to avoid paying any fees to a broker. What many fail to realize is this step can be taken while the homeowner is still residing in the property. This is done with a living trust, which allows them to remain in the home until their death. Doing so provides the homeowner with the tax benefit during his or her lifetime and no tax burden is passed on to family members after the homeowner’s demise.
Consider all options when selling a home. Each method offers its own advantages and disadvantages that must be considered during the decision-making process. Don’t simply assume the property must be sold with the help of a real estate agent. Not all benefit from this method, thus sellers need to consider all ways to ensure the right one is chosen.