When people think about selling their house, there is usually only one option that comes to mind: listing it with a real estate agent.
Even as a developer plans to build a new subdivision or master plan, they generally bring on agents to start the process of pre-sale, and then list any property that doesn’t get purchased in that phase.
There are, however, many other methods to selling properties, most of which don’t require listing on the MLS or a licensed real estate agent, according to Sell My House Easy Fast (https://sellmyhouseeasyfast.com).
The benefit is that you can save a lot of money without being forced into using an MLS or similar type of system, depending on where you are located.
Who you can work with to buy your property
There are home buyer companies out there that look to purchase homes that are motivated to sell.
The most common method that most people are familiar with is the cash offer option.
This is essentially where a company will look at the property, determine it’s value (after repairs) and how much is needed to repair the property so that it’s competitive in the market.
Then what they’ll do is subtract that from the price, and try to negotiate a deal where it comes to a total of anywhere between 50% to 80% of the retail value.
This ensures that there’s a profit margin for them when they begin work on the house and list it on the market.
The benefit to the homeowner is that they can give all cash, avoid real estate agents, cover all repairs and closing fees, and make it all happen in a short amount of time — usually 2 weeks or less.
However, this isn’t always the best option for a homeowner. Sometimes the mortgage amount is simply higher than that of the cash offer.
In situations like this, there are other methods to making sure you don’t have to pay for a property any more, or can even maximize the amount that you ultimately receive with the sale of the home.
One such option to consider would be seller financing.
This is where you, the homeowner, agrees to take on payments from the buyer for a certain amount of time, often between 2 and 5 years.
The buyer pays monthly payments that will go 100% to principal and then at the end of the term they will pay the remaining balance and the deed goes to them.
This method will usually get you over 80% of the total value, and sometimes even over 100%, so you end up making more over time.
Another method is the lease-option. This is where you take on a tenant-buyer — the tenant pays you rent for a term, some of which may get credited to the ending purchase price, and then they have an option to purchase after a certain amount of time.
If they purchase, then great, you’ve received your desired price. If they don’t, then you can find someone else to be your tenant-buyer. You just made rent, kept their lease-option consideration, and get to do it all over again — while someone else paid for your expenses.
These are just three of the ways that a home buyer company can purchase your home, relieving you of bleeding money if it’s a vacant property, or simply taking it off your hands so you don’t have to deal with it if you’re some sort of financial strain.