Have you ever pondered, “How do I sell my house fast“?
Well, selling your house fast is possible; even in this real estate market. There are many reason you would want to sell your house quickly. Selling fast may you avoid foreclosure, settler a divorce, or get out of a money pit. If you need to sell your house fast, for whatever reason, this article will help you.
First, we will discuss reason that cause home sells to take several weeks or even months to close. Second, we discuss some of the common problems that cause sales to fall through. And third, we will present a solution for quickly selling your house.
Why does it take so long to sell a house?
- The house must be ready to sell. Major and minor repairs must be made. Outdated fixtures must be updated. This can take weeks or months if you are a procrastinator.
- A buyer must be found. This usually involves several showing over several weeks, months, or years. Not only must the house be the correct size and in the right price range, it must also have that ‘special something’ that lets a homeowner know this is ‘their house’ when compared to all the other on the market.
- Financing must be obtained. For this, the buyer must be evaluated to ensure that they meet the lending requirements or the given financial institution. During loan underwriting, the buyer is frequently asked to produce extra documentation. Collecting and assembling this documentation takes time.
- A title search must be performed to ensure the title is clear. This is usually one of the last steps before the closing and it frequently takes several weeks.
- Any stipulations (additional requirements) required by the lender must be performed. This could be an increased down payment, additional documentation, the purchase of private mortgage insurance, or many other requirements.
As you can see, there are many steps involved in selling your home. During this time, the house must remain available for viewing on a moment’s notice.
Why do sales fall through?
Just because you have accepted an offer on your home it does not mean you have sold it. The time from contract to closing is often the most stressful period of a real estate transaction. While it may seem that you are just waiting for the closing date, there are actually lots of things going on. Any of these could cause the deal to fall through. Here are just a few.
- The buyer cannot obtain financing.
- The buyer has qualified for a loan, but the lending requirements change before closing and the buyer no longer qualifies.
- The appraisal comes in lower than expected. This frequently kills the loan, or requires the purchase of private mortgage insurance at a cost that may kill the deal.
- The house fails a home inspection. In most cases, this allows the buyer to cancel the contract and have their earnest money returned. In the best case, there is another costly repair that the seller must perform.
- The buyer backs out. Perhaps they have found a home the like better. Sometimes, they can find a contract loophole to get out of completing the sale. Other times they just lose their earnest money and walk away, leaving the seller with a small profit but starting the selling process over again (often with many missed opportunities).
There are many reasons that a sale can fall through. The list above is just a sample of the common reasons.
What can you do?
In order to increase your chances of quickly selling your house you must overcome all the problems above. At a minimum you must:
- Find a buyer.
- Ensure the buyer can get financing or pay cash.
- Find a buyer with experience handling potential title problems.
- Find a buyer that will not insist on contingencies, such as a list of repairs.
- Ensure that the appraisal will be high enough. Or, that no appraisal is required.
- Make sure that no home inspection will be needed.
This is a demanding list. Getting all of these variables in order can be a daunting task. However, you can eliminate most of these problem by finding a buyer that is willing to pay cash. In this case, no appraisal is needed and there is no lender to change the rules. If you can find a cash buyer you have eliminated more of the things that call a sale to fall through.
The other problem you may face a related to the physical condition of the house and title problems. Finding a person experienced with these issue issues, and that can pay cash, is often all you need to ensure that the house sells quickly.
Where do you find these buyers?
They are investors willing to buy your house quickly and for cash. The drawback is that they do this to make money. They will buy your house below market value, resolve all the problems for the house, and then wait for a qualified buyer.
Is this a good deal for you?
That answer to that depends on how important it is that you sell the house quickly. You are losing some of your equity. In return, you are selling the house quickly and avoiding hassle. That is a decision you must make..