Relocating and selling your house requires time and these situations often occur when you are falling short of it. If you own a house and are relocating to a new area, there is a lot of pressure coming your way. In the following blog, we will be explaining the options to consider when selling your house while relocating.
Reason for Relocation
As stated earlier, the reasons for relocating and selling your house are infinite. In the majority of cases the reasons for relocating is due to the change of occupation, being promoted, new job opportunities, transferred or deployed overseas, etc. There could also be other reasons like you are going through a divorce and do not wish to keep the property anymore. Else, post-divorce you got the house in alimony, but wish to sell it for gaining financial stability.
Ways to Sell Your House Fast
Relocating is a very stressful phase for a homeowner. There are multiple ways to sell your house, which has its own pros and cons. Moreover, there are multiple factors involved in the home selling process. Factors like if you are capable of paying two mortgages at once? Do you have enough equity? etc.
Given below are some of the ways to sell your house –
• Rent Your House
If renting is on your mind, then read this before you proceed. Although renting sounds like a great source of passive income it also comes with liabilities. Renting your house means investing ample amount of time in preserving the property and managing it. If you are a truant homeowner renting your house turns out to be a mess altogether. You’ll require money for improvements, you’ll need a person always available to satiate your concerns for the property’s issue like painting, plumbing, power supply, etc.
You will have to apply for a home owner’s insurance, which is 25% more than classic home insurance. Additionally, you are also liable to pay the capital gain tax on the basis of your rent. Briefly, it will cost you money and time with added risks.
• Bridge Loan
A bridge loan will help you in the current situation. A bridge loan utilizes your current property as a security to finance your new property, away from the state. It is typically sanctioned in the span of 6 months and holds a higher interest rate than an average loan. Here, you can purchase the new property, sell your old house later and collectively pay off both mortgages.
As it sounds like a robust solution for your problem it also has a disadvantage. The drawback of a bridge loan is that your property should be lien-free and your credit score should be positive.
• FSBO (For Sale By Owner)
FSBO (For Sale By Owner) is a mandated way to list your property on market for sale. You have to prepare your house in regards to the repairs and upkeep. Post preparing the house you have to market it. You can do it yourself or hire a real estate agent. Your home will require a detailed description and pictures of the property for listing. Besides, you can advertise your property locally by printing flyers and posting ads on newspapers. You’ll also have to schedule walkthroughs for potential buyers. All your transactions will need a legit proof which you can’t run away from.
By reading the above you might have understood this is not probably the solution you are searching for. Opting for FSBO will request for a lot of time which you are lacking currently.
• Sell Home For Cash
If you are in a situation where you have to buy and sell property at the same time, then selling your house to companies that buy houses for cash is the best option for you. ‘Elite Properties’ is a company that states ‘we buy houses all cash’, you can also sell your house within 3 days in any condition to them. Selling your home as is to cash buyer will directly cut down your time and take you away from all the hassle of legal processes.
Last Words, Before You Sell Your Property
In the blog above, we have briefly mentioned about the possible reasons for relocating inclusive of the methods to sell your house. We hope the specified ways would aid in selling your house fast. Whatever your problems are, there is always a solution for it. If you are living in New York and want to sell your house reason being relocation, you can get in touch with us by calling on this number 718-977-5462. Rest assured we’ll provide the best solution for your real estate queries.
Selling your home is an overwhelming and exciting process, as homeowners see great offers coming in, it could be quite confusing. While the journey is thrilling, it also comes with its own pros and cons. The situation intensifies when you see a lot of offers knocking doors, you may get confused in concerns with what offer suits you the best. It is essential to get through with the know-how of the whole process and choosing the best deal which covers all your concerns.
Providing below are some tips for picking the best offer while selling your home, which you can keep in mind before you get tempted and wrap-up deals.
Get Thorough With The Process
It could be the first time for many homeowners, and it is essential to know the fundamentals right, in the initial place. The formula to pick the best offer while you sell your home is to understand the process of sale thoroughly. You need to comprehend that, all proposals are not acceptable, the decision completely lies in your hand – you can either decline, negotiate or accept any offers that come in the process.
In some cases offers can also be modified based on the requirements of both parties mutually, this particular process of making a deal is called a counteroffer.
Decide The Criteria Of Sale
While you put your home in the market for sale, you would want to set criteria or baselines on which you’ll be proceeding. Set your zeroes to priorities, for example – if money is the point of inclination you could cut down on the selling duration to find the final offer, and so vice-versa if time is your priority you could cut down the monetary expectations by selling your home fast for least maximum gains.
Receive Comments Positively
As said in the very beginning home selling process is a very overwhelming process, as you are emotionally attached to the place you wouldn’t want to sell it. But nonetheless, it is just a deal which could favor you for life and would lead you to make wiser decisions.
Acceptance will lead you a long way, you would have to face a lot of criticism and welcome to the negative comments of buyers where you would feel offended. For example – If your residence has exteriors that are aesthetically appealing but, as soon as you enter the house the view of the living area is shabby in such cases, buyers are likely to complain. Here, you do not need to lose your calm, this could be a sign, that the buyer is potential and has an interest in your property.
Opt For An All-Cash Offer
As a piece of suggestion – if you want to close the deal fast, it is highly advised to pick an all-cash offer. While walking on the track of an all-cash offer, the buyer would likely put a discounted price on the house which as a seller is an added advantage. It will remove hurdles like contingencies and waiting period. Though it sounds all good and glittery, it is always essential to have your proof of funds letter accounting from the buyer’s bank or any legit lender. Buyers propose a cash offer eventually to pay less for the seller’s property as they elude contingencies, prolonged time of sale and pay hard cash immediately to close the deal. Also, remember the highly priced offer may not always be the best one, you might want to think through the other terms as well. Accepting cash offers will let you be at peace, as the gains would be definite. If you want to sell your house fast for cash. You can get in touch us, we buy houses within 3 days.
Net Proceeds
The amount that the seller is left with after cutting the expenses along with the closing cost is known as net proceeds. For example – If you receive an amount of 5,000,000 dollars as your closing cost, as a seller you would have to meet with some terms of the agreement which will cost you dollars. If the cost of repair, inspection, appraisal, and some other terms cost you 500,000 dollars, the outstanding amount would be 4,500,000 dollars – this amount is known as net proceeds.
- Seller concessions
- Repair cost after home evaluation
- Repair cost post appraisal etc.
Given above are some of the primary charges that you may find in the contract which are subjected to change accordingly.
Assess Contingencies
Contingencies are clauses that are present in the purchase contract. There are a set of standard conditions which must be satisfied, in order to proceed with the sale. The clauses are likely to vary from contract to contract or buyer to buyer, as some of them can be summed up over demands, there are some basic requirements that must be taken care of before progressing to an agreement.
Listing below are some of the common contingency clauses –
Appraisal Contingency
Appraisal contingency is a standard real estate contingency that, allows the buyer to decline the contract without paying the upfront penalty, this case is only applicable when the appraised value of the assessed property is comparatively less than the purchase price. In such circumstances, the seller can ask for a refund of the earnest money deposit.
Inspection Contingency
With a right to withdraw contract before providing the earnest money deposit, buyers also have the entitlement of inspecting the property within the specified time period. This term is also known as due diligence.
Here, the time is usually between 5-7 days, the objective of inspection contingency is that it covers the buyer which helps them to back out of the deal or negotiate for repairs. A home inspector will inspect the HVAC, electrical and plumbing systems. If the report is disapproved by the buyer, he or she could terminate the contract or negotiate mutually.
Financing Contingency
If your funds are likely to fall through as a buyer, you can terminate the contract and reclaim the earnest money deposit if you don’t secure any finances in the given term period (the financing contingency or also known as mortgage contingency states the specific number of days when the potential buyer has to apply or obtain financing).
In such cases, the buyer can request for an extension, or according to the norms, the buyer will have to purchase the property regardless he or she has their finances on track or not. Hence, as a seller, it is always necessary that you comprehend the difference between a pre-qualified buyer and a pre-approved buyer (these terms are used interchangeably, which could also differ from the seller’s requisitions). Although, a pre-approved buyer is always in favor as they have high chances to achieve loan on first place basis.
Home Sale Contingency
In home sale contingency the buyer has to sell their existing property and settle the finances prior to buying the new one (or your home in specific) what it does is, it gives liberty to the buyer ensuring they have the gains from their existing property, further to buy yours inclusive of no hassles. You can also buy and sell property at same time all you have to do is get in touch with ‘we buy houses for cash’ companies like ‘Elite Properties’, they will help you in order to satiate your requirement and get the work done.
In home sale contingency a specified amount of time is provided to manage everything from selling and financing but, it is not necessary that things would go on a definite path as there is a possibility of things might won’t go according to the plan. In such a case the buyer can back out if he or she does not achieve the desired amount of the existing property – here the buyer will not be questioned for terminating the deal.
The seller here furthermore has the privilege to drop the agreement if the purchaser’s house isn’t sold out within the specific time frame.
There is also an additional set of contingencies that are added based on the requirements of the buyer. Some of them are listed below –
- A radon examination
- Mold inspection
- Evaluate the presence of lead paint
- Radon in water
- Well water inspection
- Miscellaneous inspections or other contingencies
Be Interrogative
As money could be the leading aspect of selling a home, it is similarly significant to understand other related terms carefully before making a move. The real estate market is full of uncertainty hence it is advisable to be thorough with the know-how of the selling process.
Ask questions or make a checklist of terms that simplifies the home selling procedure. Check if the buyer is pre-qualified for a mortgage and has a pre-approval letter, this enables the seller to be at peace as the credit score, debts and available assets has been previously passed with an evaluation.
Provided below is a seller’s checklist that you might go through while selling your home –
1. What Type Of Mortgage Does The Buyer Avail?
Each mortgage has some terms of the agreement, and prerequisites, there are mortgages that allow buyers that have a low credit score or even no money required for purchases. There are mortgages that will progress only when the buyer has a required or high credit score to make down payment for the asset.
It does not matter on what grounds is the buyer obtaining his finances, as a seller it is only essential that the buyer has a fair amount of down payment that will provide certainty in the sale. Mortgages like FHA and VA loans have some requirements that need to be satisfied before sanctioning the loan. In an FHA mortgage if the requirements aren’t made the seller might find him or her in a chaos of making last-minute changes in the sale – the demands in a VA mortgage also stand the same.
2. Mortgage Commitment Date
A mortgage commitment date symbolizes the ultimate date of buying a home. As mentioned earlier the home selling process has contingencies throughout, and the risks of a loan fall-through are unpredictable hence, it is necessary to have a mortgage commitment date. If the date lapses, the seller is entitled to keep the earnest money deposit.
3. Required Earnest Money Deposit
Earnest money deposit is the money that is held by a listing agent (escrow) until the sale closes. This money is kept in custody which ensures that the buyer satiates the conditions of the contract if he or she fails to do so the money is given to the seller as liquidated damages. The typical escrow amount is 5% of the sale price.
4. Fix A Suitable Time
Home selling is a hyperactive-chaotic situation as everything is fast-paced. There is a spectrum of home selling bar where you need to fix a suitable time for each move from selling to moving further. It is advised to keep your plans settled as closing dates are usually the most critical aspect of the sale.
5. Mistakes on Contract
Mistakes on contract show poor knowledge of a realtor and uncertainty of the buyer, using white ink, re-writing or over-writing on the contract is unacceptable. Dodging of poor errors will provide you with the assured sale.
A Safe Conclusion For You
Covering many sub – topics, here is providing you with an effective method and tips to consider when you pick the best offer while selling your home. If you are living in New York City and require more assistance regarding the above or any other real estate crisis you can get in touch with a reputed real estate company like ‘Elite Properties’, we will provide you with thorough support and answer each query.