Multiple Solutions Available To Sell Your House When Downsizing
Home Downsizing Solutions Provides
Multiple Solutions To Sell Your House When Downsizing
Home Downsizing Solutions by The Sierra Group can provide multiple options to sell your house. These include selling your house yourself, or for sale by owner. Enlisting the services of a real estate agent, or selling to a home buying company, or what are now called an ibuyer.
As with anything, there are positives and negatives of each, but I want to provide you information on all of the options, so you can decide the best way for you to move forward, if you want to sell your house and downsize.
Sell Your House For Sale By Owner
There certainly is an appeal to marketing your house yourself, and hopefully saving the 5 to 7% commission that would be paid to a real estate agent. This hopeful savings can disappear very quickly though. The bottom line is you still need to do something to attract a buyer.
How will you attract potential buyers? A sign in the yard with maybe a flyer box, newspaper ads, or other publications, or online ads? Do you have the ability to get your house online and exposed to everyone looking to buy a house? One way or the other you need to get the message out that your house is for sale to attract potential buyers.
You may get lucky, and combined with a hot housing market be able to find a buyer. More likely, however, this will require time, money, and a good deal of effort to be successful in finding a buyer.
If you are fortunate enough to find a buyer, are they actually able to buy the house? Do they have the funds or ability to get a loan?
One of the most frustrating things when selling a house, is to find a buyer, and be told that they have been pre-approved for a loan, only to find out that this so-called pre-approval was conditional on a number of items that the lender hasn’t bothered to check yet. It seems that many lenders don’t collect all the information needed from the potential buyer, to make a final decision about the loan until the buyer has found a house to buy and has a contract to buy it.
By the way, this can also happen with buyers when listing a house with an agent, when the agent doesn’t know what they should be asking of the buyer, and or the other agent.
Also, depending upon the current economic and the lending climate, loans may be more difficult for buyers to secure, and the banks and underwriters may get more selective of who they give loans to.
Does your potential buyer have an agent? even if you do not have an agent to list the house, many buyers are still represented by an agent and will want the seller to pay the buyer’s agent commission. As with many things, this is negotiable, but if you have an agent bring you a buyer and you want to sell, you will most likely end up paying the commission.
And you’re likely to have buyers that will attempt to negotiate a lower price, knowing that you’re not using an agent. The potential buyer knows that you were trying to save the 5 to 7% for not using an agent. And they will likely look to reduce the price of the house by at least that much. Again, this is negotiable, but you’ll have to decide how much you want to sell the house, how much they want to buy the house, and negotiate the best outcome.
Using The Services Of A Real Estate Agent
One of the most positive aspects of utilizing the services of a real estate agent is that they can expose your house to a large market of potential buyers. They can also reduce a lot of the stress of selling a house by communicating with buyers and their agents, so you don’t have to.
Is the agent marketing your house as well as they can or should be? Or are they just literally sticking a sign in the yard, putting your information on the multiple listing service (the MLS) and waiting for something to happen? Worse, are they putting the wrong information in the MLS? Are they placing pictures on the MLS that show your house in a positive light, or pictures that make your house look like it has been foreclosed by a lender or should be. When potential buyers are looking online at houses, you want to make sure that your house looks as good as it can to them.
Other Realities Of Listing Your House With An Agent
Are you going to get and keep your house in show ready condition? When agents are showing prospective buyers houses and decide at the last minute, they’d like to see yours, will you mind receiving a phone call that they would like to show your house in the next 30 minutes?
Do you mind showing your house evenings or anytime a potential buyer wants to see it?
Do you mind total strangers who may or may not be serious buyers walking through your house? Especially when it comes to open houses, you or the agent doesn’t have complete control over who goes through your house.
One of the biggest things to realize when listing your house is that the agent has no skin in the game. Yes, they should be working for you. But the reality is they don’t have much to lose if your house doesn’t sell, except for the time they have put in.
Is The Agent Realistic On Pricing
A common problem I see is that an agent can be overly optimistic about what a seller will net from the sale, if they list their house, in an effort to get a listing. When the seller does list and the house doesn’t sell, they start to work on the seller for a price reduction, with other price reductions to follow until the house sells or the listing expires.
This can create a very unrealistic expectation for a seller of what they think they will net from the sale of the house.
Selling Your House To A Home Buying Company
Probably the negative or potential negative about home buyers, real or perceived, is that a seller may net less from the sale of their house than if they sell with an agent or for sale by owner. The thought of all that investor buyers do, is give low ball offers.
The thought of, “If they tell me they can buy it for cash, will they actually be able to, or does this person or company really know what they’re doing?”
The Positives Of A Professional Home Buying Company
Some of the positives of selling your house to a professional home buying company like Home Downsizing Solutions are, you can sell your house quickly, sell your house as is, you don’t have to worry about doing any repairs or updating, you have flexibility of moving and possession dates, and you are in more control of selling your house, downsizing, and the transition to your new home.
However, just ensure that you are working with a professional home buying company, like Home Downsizing Solutions by The Sierra Group. Otherwise your experience may be less than satisfactory. I have encountered buyers that said they could buy with cash, but realized later, the only way they could do that was to apply for a loan or line of credit on the house they were buying. Therefore, not a cash buyer at all.
Be Aware Of Wholesalers Or Fake Home Buyers
Be aware of what are called wholesalers. These are typically people or a company that say they can buy your house, but once they get an agreement or contract of purchase will shop the agreement to find a real buyer that can actually close and purchase your house.
If they have over promised on what they or someone else can actually pay you, you may be in a very uncomfortable position of not being able to sell your house. To protect yourself with this type of situation, ask for a proof of funds or at least contact the title company you’re closing with as a reference, and ask if the buyer is “real” and if they can do what they say they can.
Some buyers will also make an offer for a house and then nickel and dime a seller by deducting the closing costs, fees, etc., like an agreement through a real estate agent would after the fact. Sometimes this significantly changes the net amount a seller thought they would receive from the sale.
Be Very Cautious About Home Buyers That Make An Offer WITHOUT Looking At Your House
Some buyers will even give a seller an offer for their house without even looking at the house. A seller should look at this with skepticism, and ask the question of how would this potential buyer be able to make an offer without even seeing the house.
As I mentioned earlier, some of the positives when working with a professional home buying company like Home Downsizing Solutions can be, if they truly are a cash buyer, they can close quickly or whenever a seller wants them to. They can buy a house as is and do not come back and nickel and dime a seller unless an inspection shows items the buyer’s own inspection would not be able to discover, such as a foundation inspection or other potentially hidden item.
The buyer can close, giving a seller the peace of mind that the house is sold, but allow the seller to remain in the house until they are ready to move.
The buyer will allow a seller to leave whatever stuff they may want to leave in the house when they move. This is one item that will make it easier for a seller to move. The seller doesn’t have to worry about leaving the house spotless, like when selling to a traditional buyer.
The buyer can customize or tailor an offer or solution to what a seller really needs. Sometimes these needs are different than just a cash purchase, and it takes a true professional company to be able to provide the best offer and solution for each seller.
A good professional company will have experience working with probate or estate situations, and be able to provide a great service to assist the seller in navigating these types of situations.
They can assist in arranging for a moving company to make this move as stress free as possible.
Some select home buying companies like my company, Home Downsizing Solutions could even remove the catch-22 of wanting to sell, but not having the ideal place to move into right away or having a vacant house to worry about. We are usually able to buy your house, but allow you to remain in the house until your new home is ready to move into. This also eliminates the problem of having to potentially move twice to get to the home you really want to be in.
More Control Of The Sale Of Your Home
One of the biggest benefits of working with a professional house buying company is that you are in control of the sale. You decide when to sell. You decide when to move. In general, when working with a good professional house buying company, the sale of the house and move can be much easier and less stressful than selling in a different manner.
What Benefits To Sell Your House Are Of Value To You?
When considering which of these selling options is best. It just depends on which benefits are best for your situation. It depends on which benefits of each may or may not be of value, or enough value.
The 5 to 7% commission paid to a real estate agent may be a bargain if they are able to market your house, minimize the hassles that can happen with having a house listed, attract the buyer, navigate the issues that can happen while your house is in escrow, and complete the sale with a satisfactory outcome.
Maybe the benefits of a home buying company are valuable enough to accept the possibly lower amount for the house. Namely, not having to put the house on the market at all, selling your house as is, taking the items you want to take with you and leaving the stuff behind, choosing the most beneficial time to move for your schedule, and in general, being in control of selling your house.
I hope this has given you a good overview of the options you have available to sell your house. I want to provide you with the information necessary so that you can make the sale of your house, and transition to your next home as stress and hassle free as possible.
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Home Downsizing Solutions by The Sierra Group, LLC is based in Lincoln, Nebraska. We purchase homes locally, and in many other parts of the country such as Nebraska, Missouri, Kansas & Florida! For the past 20 years, we have been helping people by purchasing their homes directly! In addition, we are licensed realtors in Nebraska and Missouri. We understand the process and the local markets, allowing you to receive the best service and the best all-cash price for your home! We are Veteran Owned, and hold an A+ rating with The BBB!