What Are Your Options When You Need To Sell Your Property Quickly?

If you need to sell your property quickly there are various options you can take. The 4 main options are:

 

1. Sell via an estate agent

2. Sell privately

3. Sell via an auction

4. Sell to a cash buyer or specialist home buying company

 

Which one you chose will normally depend on how great your need is to sell and the price you need to achieve. Although estate agents are normally the best solutions when you have 6 months to wait until your property is sold they do not suit people who need to sell their properties urgently – i.e. in the next 1-8 weeks. Selling via an Estate Agent normally 4.5-7 months and then there is a 1 in 3 chance of a broken chain which means starting all over again. Even if you put your property on the market a big discount it is still likely to take you a lot longer to sell this way than via an auction house or through a home buying company (where you are likely to get a similar price).

 

Selling privately is often not the best solution if you need to sell property quick. In fact it is often the worst. By selling privately, I mean doing your own advertising in newspapers and online. People use this method to save on estate agents fees normally but it is normally counter productive when you have time to sell, never mind when you need to sell quick. It is unlikely enough potential buyers will see the property, particularly the ones able to buy it quickly. 

 

Selling via auction is a good option for those people who need a quick home sale but those selling this way need to understand that they are only likely to get up to 80% of the properties value – sometimes a lot less. Of course you can set a reserve so you don’t have to accept offers below a certain level. You also need to be aware that there a auction house fees of 2.5% normally. The advantage is that after the auction takes place the sale is normally completed in a month (if the reserve has been met). It will normally be 1-2 months after you contact the auction house that the auction will take place to allow for marketing the property and potential buyers to carry out due diligence. So in total you would be looking at 2-3 months to sell via this route. 

 

Selling to a specialist home buying company is a viable alternative to an auction house.  The advantages to this method is that:

1. The whole process from contacting the company to completing the sale can be done in a month or quicker.

2. There are no estate agent or auction fees

3. Legal fees of £500 are normally paid for you (which normally covers them all)

4. No Home Information Pack required

5. The sale is guaranteed once you agree on a price

6. You have more control over the price as this is negotiated directly with the buyer. If you are not happy just walk away with no money lost. 

 

The price you will be offered from an a specialist homebuyer is normally between 70-80% of the properties value. This is similar to what you would expect from an auction sale although you don’t have any fees and it is quicker. 

 

So if you need to a quick sale consider a homebuying company or an auction. If you are not in a hurry use a good estate agent. 

Should You Sell To A Homebuying Company?

Selling a property can be one of the most stressful things you can do and unfortunately this event is sometimes forced on people. Due to external factors many people find themselves in a situation where they need to sell their home quickly. The operative word here is “need” rather than “want”. Often this is due to financial difficulties, divorce, separation, emigration or the threat of repossession and eviction. In these circumstances selling on the open market via an estate agent is not the ideal solution due to the time it takes.

 

Selling via an estate agent is the preferred route of most property sellers and accounts for 90% of all sales. The reason why this method continues to be so popular is that it allows the seller to get near the maximum price possible for their property (assuming they are using a good estate agent which is not always the case).  Just a quick note on this: the market value and is the price that people are willing to pay for the property. Sounds simple but it is important to distinguish that the value of a property is what people will pay and not what surveyors or estate agent say. Most of us have seen (either on TV or through personal experience) 3 different estate agents value the same property and come up with 3 very different prices. They are guesstimates but many people chose the highest and hold on to this as fact. 

 

Anyway, I digress. Selling via an estate agent normally takes anywhere between 4.5 – 7 months with 6 months being the average. It is also worth bearing in mind that 1 in 3 of these sales collapses down due to chain breaks. The buyer and seller then have to start all over again. So this is not the ideal solution if you need to sell your property quickly. Those who do are increasingly turning to specialist home buying companies as well as the traditional auction route. 

 

Home buying companies can offer the best option to some people who need to sell their homes fast. So what can they offer:

 

1. Exchange in days and completion in less than a month

2. Guaranteed sale (they buy with cash or have pre-agreed finance in place)

3. Pay sellers legal fees up to £500 (which normally covers total cost)

4. No Estate agency fees

5. No HIP required by seller (as it is a private sale)

6. Many offer option to rent back if you are in financial difficulty

7. Some also offer option to buy your property at a fixed price in the future

 

That is basically it. You get a quick guaranteed sale with no fees to pay. So what is the catch – why doesn’t everyone use them? Well the biggest reason why they are only suitable for those needing a quick home sale is that they will only offer to buy properties at a discount. Normally, 20-30% below market value. Therefore if you have a house worth £100,000 they will offer to buy it at between £70-80,000. They take this discount as they are in a business to make a profit – they normally try and make a 5% profit for each purchase. 5% is normally all they get after the costs of buying,  marketing, waiting for the property to be resold, and selling costs.

 

In conclusion, if you need a fast home sale and are willing to sell your property at 70-80% of its value then this method is worth considering (it is approximately what you will get at an auction but you will incur more costs selling via this route and there is no guarantee it will sell).  If you would just like a quick sale, then your best option is to use a very good estate agent. 

How To Sell Your Home In Rough Times

Are you wondering how to sell a house in a recession? Right now is an awful time to have to sell a house. House prices have gone way down from earlier in the year and there are many more homes for sale than there are buyers. People are reluctant to make such a large purchase in these rough economic times and so sellers need to do everything they can to get their homes sold. Although the prospects are not great, there are some things you can do to get give your house the best chance of getting sold.

One thing you might consider trying is to negotiate with your real estate broker. If you agree to raise your realator's percentage slightly, he/she will be more motivated to putting in the necessary time to get your house sold. Of course this option is not for everyone and will depend on just how desperate you are to sell your house. This is not the standard way of how to sell a house but if you do raise their percentage, it will give them incentive to hold more open houses on the weekend and to send more flyers out.

Another thing you must do is to advertise your house. You must work to get the word out to as many people that your house is for sale. This is in addition to the work of your realator. There are many ways to advertise your home including advertising in the newspaper, announcement boards at your supermarket, printing brochures and handing them out to everyone, having signs on nearby cross section streets, and telling all your friends.

Another possible source of leads are your neighbors. Make sure all your neighbors in your local community know your house is for sale because they will sometimes know someone who is interested in moving into the neigborhood. Make sure everyone at your church knows your house is for sale as well.
 
Unfortunately, selling your house in a recession may come down to lowering the price. No matter how much you do to remodel your house and make it look just right may not matter if the price is not low enough. There may be no right way of how to sell a house fast as right now sellers have the upper hand and they know it. If you want to get what you perceive to be the right price for your house, it may just not be possible. It is difficult knowing what your home was worth and could have gotten one or two years ago but unfortunately cercumstances have changed. In today's market you need to be willing to negotiate and lower the price.

Foreclosures in Wahsington State

Foreclosures are increasing all around the country. Foreclosed homes in Washington and the surrounding Seattle area have stayed relatively low until just recently. The housing market is beginning to decline like much of the country. As prices fall it could be time to contact your Redmond Real Estate Agent

The number of households ensnared in the foreclosure crisis grew by more than 70 percent in the third quarter of this year compared with the same period in 2007, according to data released Thursday. Many Homeowners find themselves in a position where they cannot continue making their Home Mortgage payments. New foreclosures nearly doubled in Seattle in the third quarter as the worst housing crisis since the Great Depression continued to deepen, the online real estate data company PropertyShark.com reported.

New foreclosures in Seattle rose to 501 from 251, the second biggest gain in the study of four U.S. cities including New York and Miami. Nationwide, nearly 766,000 homes received at least one foreclosure-related notice from July through September, up 71 percent from a year earlier, said foreclosure listing service RealtyTrac Inc.

Seattle hasn't been hit as hard as other parts of the country like California, Nevada, Georgia, Florida etc.

King County saw its foreclosure rate drop sharply in September, according to RealtyTrac, a national foreclosure tracking service. Foreclosures in King County dropped 42 percent from August to September and fell 13 percent from September a year ago. Data according to RealtyTrac in King County show one out of every 1,630 houses are in foreclosure.

RealtyTrac's third-quarter statistics put Washington 26th in foreclosure activity. Of the 100 top metropolitan areas, Tacoma ranked 40th and Seattle/Bellevue/Everett ranked 77th for Mortgage Home Loan foreclosures during the third quarter.

In Washington state overall, foreclosures dropped 38 percent from August to September and declined 16 percent compared to September 2007. The state was ranked 34th for foreclosure activity.

How To Sell Your Home Fast

 

This article looks at the options open to property owners who want to sell their homes fast. 

 

The majority of residential property sales (90%) are conducted via estate agents. However, this method is not right for everyone and more people are looking at alternatives as they are unhappy with their estate agent or they need a quick property sale. 

 

The problems with Estate Agents

The Office of Fair trading conducted a study of estate agents in response to many complaints about them. They found serious concerns over the way estate agents serve the public. The consumer group Which? has also conducted research and found evidence of serious violations of the law and a massive 50% of consumers voicing dissatisfaction over the service received from their estate agent. They said:

 

"Consumers entering the home-buying or selling process are substantially disadvantaged by the way estate agents currently operate"

 

Now, of course there are some good estate agents out there but all too often you have to pay 1.5 - 2.5% +VAT (i.e. that is £5,875 on the sale of a £200,000 house) for terrible service. 

 

So what it the alternative??

Well if you want the top price for your property the only real alternative is to advertise yourself or get a better estate agent. However, if you need a quick sale then a specialist home buying company is a good option to use. They can purchase your property directly from you with out the need to go through an estate agent.

 

Just to be clear, you should really only use a specialist property buying company if your need for a quick sale is greater than your need to sell for the best price. 

 

Typically you find yourself in need of house buying specialist if:

1. You are in financial difficulties

2. You are being threatened with repossession

3. You would like to sell and rent it back

4. Your chain has collapsed and you're totally desperate and need a quick sale

5. You need money quickly and remortgaging is not an option

6. Bereavement or divorce means you need to move-on as quickly as possible

7. You've inherited property that you want to cash-in quickly

8. You're emigrating and your property is proving difficult to sell

 

Home Buying companies will normally give you a cash offer for your property within 2 days and exchange contracts within a few days and 3- 4 weeks. Completion can then be fixed to suit you but the norm is completion within 3-4 weeks.

 

How Much Will They Buy My Property For?

Home buying companies will normally pay between 75-85% of your properties open market value. Open market value is the price the property would fetch on the open market within 3 months. This is typically less than the price estate agents advertise properties at as they expect to receive offers between below their advertised price (apart from in Scotland).  So, you will received a quick sale and a guaranteed sale if you sell via this method. 

 

What other benefits can these companies provide?

 

A good company will offer to:

1. Pay your legal fees (up to GBP 500 which normally covers them all)

2. Pay any survey and valuation fees

3. Allow you to stay in the property after selling (i.e. you rent back from them)

4. Meet their promises on price and completion date

5. Adhere to some Code of Practice from a recognized body if you rent back such as NLA Rent Back.

 

Beware!

Avoid a sale and rent back company that do not offer the services listed above. Some companies charge for valuation fees regardless whether they plan to buy your property or not. Also beware of companies that try and get their foot in the door by giving you a high offer only to reduce it at the last minute.

 

Need a Fast Home Sale?

This report will show you the tricks and secrets you must know if you need a fast property sale of your property.

 

Selling property can be one of the most stressful things you will ever do. 90% of people sell through an estate agent so this must be the way to go right?

 

Well, it depends on time pressure you are under. When selling through an estate agent you will normally have to go through these stages:

 

1. You need to pay for and complete any renovation and refurbishment necessary (2-3 weeks)

2. You will need to conduct multiple viewings (4 to 8 weeks)

3. If your estate agent finds you a buyer, you will need to wait a few months for the buyer to arrange a mortgage (8 to 14 weeks)

4. If the buyer is in a chain, you will need to wait for their home to sell before yours can be purchase (2-3 weeks)

 

This can take between 4 to 7.5 months! This is a long time in anyone’s book! It is a also a sad fact that 1 in 3 chains break down at the last moment due. It only takes one person to pull out and the whole chain falls apart.

 

How to sell in less than 4 months

However, even with these obstacles in mind it is still possible to sell your home in less than 4 months by these following tips (and having luck on your side):

 

1. Get a reliable, reputable estate agent.

2. Finish off any necessary DIY jobs

3. Thoroughly clean and de-clutter you home

4. Depersonalise your house and go neutral

 

Point 1 is very important as unfortunately some estate agents are not good. As the Office of Fair Trading said:

 

"Consumers entering the home-buying or selling process are substantially disadvantaged by the way estate agents currently operate"

 

Now, in fairness there are some great estate agents out there but they seem to be hard to find. Will you be lucky enough to uncover a good agent? Are you prepared to pay 1.5 - 2.5% +VAT (i.e. the price of a new kitchen) to find out?

 

So what it the alternative??

One of the more popular alternatives if you need a quick home sale is using a specialist home buying company to help you. They can purchase your property directly from you with out the need to go through an estate agent. You will not have to pay solicitors fees, estate agency fees or for a Home Information Pack. These companies will not offer you the market value of your property (normally 15-25% less) but they can offer you a quick hassle free home sale. 

Seattle Area Real Estate Market is Stabilizing

The Seattle area's real estate market showed signs of stabilization in September, according to new statistics released Monday.  Especially in the critical market for single-family houses in the four-county central Puget Sound area, said Glenn E. Crellin, director of the Washington Center for Real Estate Policy Research at Washington State University.

Sales of houses and condominiums in those counties rose nearly 4.1 percent in September compared with the same month in 2007, and nearly 4.2 percent in King County alone. The last monthly increase for the region was 4.8 percent in February 2007.

The main reason for the market stabilization in year-to-year numbers is the mortgage crunch hit the Seattle & Redmond real estate area hard in August 2007, when the region already had an increasing number of homes chasing a shrinking pool of buyers. That crunch showed first in the data from September 2007.

The median sale price fell last month by 8.3 percent to $295,000 compared with September 2007 and by 3.7 percent to $380,315 in King County.
Total active listings at the end of September were 10,889, down by about 1,500 or about 12 percent from a year earlier.

Crellin said the most significant figures he saw in the report were the declines in sales that closed in the central Puget Sound area - 16 percent in King County, 4 percent in Pierce County, 30 percent in Snohomish County and 14 percent in Kitsap County. Overall sales figures also include agreements that await financing.

The statistics show more sales are taking longer to close, reflecting delays in obtaining financing because of the credit squeeze nationally, he said.

"I'm not saying that they're not going to close, they're just taking longer," he said.
The areas previous real estate bubble had too many sellers and not enough buyers, so the trend is "ultimately good news for the market generally," Crellin said.Now may be the time to find the low hanging fruit and step back into the real estate market.  Talk to a Redmond real estate Agent and receive your Redmond real estate

Sellers are less aggressive in trying to cash in at a profit, "taking a more wait-and-see attitude," he said. "I think that's healthy."

The Contract for Deed – A Great Way to Buy a Home

In today’s real estate market it can be both difficult to either buy or sell a home.  Contract for deed sales seems to be what more and more real estate investors are looking into.  Remember: As a buyer or seller of a real estate notes, check whether the contract you are agreeing to is to your benefit and well written.  Unorganized contracts can cause us a great deal of problems in years ahead, especially if you ever plan cash out that real estate note.  That is why it is imperative that both buyer and seller read all clauses in the contract for deed and to be positive that everyone understands all details.  It is often even recommended by private real estate investors that you get your contract reviewed by a good real estate attorney.

Just what is a Contract for Deed?

In Texas, or nationwide, a contract for deed assists the buyer in saving money when purchasing a home, money they can draw on for expenses resulting from the real estate purchase.  Under this contract, the seller retains ownership of the property until the buyer fulfills all his obligations, then the title is transferred to the buyer.  To explain it in laymans terms the owner will keep the deed, and do all the financing himself.  The title becomes the buyer's and the deed is registered once payment occurs and all conditions are met.

The buyer is usually permitted to offer a lesser amount for a down payment on a home with a real estate note.  This implies that buyers wanting to purchase a home do not have to have too much capital.

What becomes of monthly payments derived from a real estate note? The Texas contract for deed has it's benefits at first, but draw backs will surface later to balance its attraction, as is true in other states as well.  It means that there is usually a higher interest rate on the principal, and the monthly payments will tend to be high, especially if the contract is written for a short amount of time.   It is this reason because of which the buyer has to have enough cash flow for being able to pay the monthly payments.

Benefits to the Seller: The advantages to those placing your notes for sale are numorous.

First it is easier to sell the home in these difficult times.  Another aspect to this is that allows the seller to instead of just reporting one year of capital gains it allows for the whole period of the contract.   Taking advantage of this will give the seller several tax credits.

If you are looking for a large sume of money at closing it is highly unlikely you will get it with this type of sale.  This sale may not be right for you if the tax saving is not as important as the large down payment.

At times, there may only be one option for a person to buy a home or for a buyer to sell a home - the contract for deed.  So both the parties can get benefited by this.  Be certain that the agreement is sound and both the parties have benefits in it.

House

When the housing market is in a down time, interest rates may rise, leaving homeowners who have adjustable rate mortgages with higher payments than they can afford. Under these circumstances, it's not unusual for homeowners to fall behind in payments and face repossession, or foreclosure.

House repossession is a hard measure that the creditor takes against the debtor, while being forced to recuperate its financial losings caused by failing to get the monthly payments to cover the debt. House repossession takes place either because the loan was made in order to buy the house, or because the loan was made in order to buy another kind of property or good, but the house was set as a guarantee that payments will be made regularly and according to the contract that was initially signed by both the debtor and the creditor.

House repossession is very serious and painful business. Before it occurs, the creditor in most states is forced by law to warn the debtor about failing to keep up with the monthly payment. After these warnings and the grace period is over, foreclosure comes next. The person who has loaned the money from the bank is probably issued an eviction order and in informed about when the house is supposed to be available for the creditor to get hold of.

Despite all these radical measure, house repossession can be avoided. There are many real estate companies that profit from this business and at the same time help you stop house reposession. These agencies can make you various offers like buying the house from you at short notice and allowing you to keep living in it while paying rent and being able to return the money obtained from selling to the bank. Some companies also agree to sell the house back to the initial owner who has now become the tenant for a pre-settled price stipulated in the contract. Indeed, the real estate company will gain profit out of this business but it will also help you stop house repossession from occurring and it will buy the debtor more time until he can figure out how to get the money in order to feel the true master of his house again.

If house repossession is a threat, it is advisable to read laws, look up all the possible offers from various agencies and check with a legal advisor so that minimum losses will be at stake.

Sell to Rent Back Remortgages

The reasons why a seller might need to sell to rent after closing vary, but it's not uncommon for a seller to request a rent back. The home the seller is buying might not be available at the time your transaction closes or the seller might not be able to find a moving van on the last day of the month, when demand for moving vans is high.

Of course, as a new home buyer, you might find this situation unsettling. After all, you've paid a lot of money for your new home, on top of paying interest on a loan for a home that you can't yet occupy. It's understandable that you are eager to move in and take possession right away. Plus, you may not have anticipated finding yourself in the position of being a landlord.

 

How to Protect Seller

Treat this situation as you would any other business relationship. Buyers should never let sellers retain possession of a home without executing a formal occupancy agreement. These agreements spell out the terms and conditions of the seller's occupancy and protect buyers as well as the sellers.

In California, real estate agents have at our disposal a handy form called the Purchase Agreement Addendum (PPA), which among other contract terms, addresses seller rent backs. When the appropriate box is checked, this addendum modifies the purchase contract.

The PPA handles short-term seller rent backs that are less than 30 days and contains the following elements:

 

• Term of the rental period
• Amount of rent per day
• Amount of security deposit
• Whether the security deposit will be held in escrow or released to the buyer at closing
• Late charges, if any, pertaining to non-sufficient funds and / or payments that are received late outside of escrow
• Who pays for which utilities
• Right of buyer to enter property
• Seller's duties to maintain the property
• Lease assignment and subletting rights
• Seller's obligations upon surrender
• Insurance for seller's personal items
• Miscellaneous conditions

 

Insurance Coverage for rent backs

Sometimes, buyers will insist that sellers maintain their existing homeowner insurance policy during the rent back period. While insurance companies are not happy to keep coverage in affect, many will continue upon request.

However, there are several problems associated with this. The seller no longer owns the home, so in the event of a claim, the seller's insurance company may refuse to pay the claim. Moreover, the buyer has insurance coverage because lenders insist that a buyer's insurance policy be in force at closing.

Some insurance companies have argued that if a claim were to occur and the seller submitted a claim to the seller's company, even if the seller's company paid it, the seller's company might look to the buyer's insurance coverage for reimbursement.

In either case, the seller should carry coverage for the seller's personal belongings and automobiles.

 

Determining rental amounts

The rent the seller pays is negotiable. Sometimes seller don't want to pay any rent but ask to stay in the home for a few days rent-free. In that event, it is still wise to execute an agreement that addresses liability issues and term.

Because most buyers finance a new home, buyers are incurring interest and paying taxes and insurance for a home they do not occupy. It is reasonable, in most cases, to charge the seller an amount that is equal to a daily proration consisting of the buyer's principal, interest, taxes and insurance.

If the buyer's new mortgage payment includes impounds (taxes and insurance), it is fairly simple to divide the PITI payment by 30 days and charge the seller that prorata amount per day. For example, if the buyer's new payment is $3,000 PITI, that would equal $100 per day.

For further protection -- and to comply with local rent control laws or other state-specific laws governing landlords and tenants -- buyers and sellers might want to consider signing a standard residential lease agreement. For more information, consult a real estate lawyer.