Unfortunately, the current financial climate has resulted in many individuals losing their homes through either a foreclosure or bankruptcy. There are many individuals who are desperately attempting to avoid that calamity. In this article, we will discuss the three best ways for you to sell your house.
The first way to sell your house, of course, is for cash. How do you make a determination as to whether you have a realistic approach to a cash sale of your home. Frankly, it depends on the individuals to whom you’re marketing your property. However, in the vast majority of instances, the cash home will be sold to an investor. Investors are going to be looking for a win-win situation with the seller. Therefore, it is important to try to be realistic in your approach to these negotiations.
In the vast majority of instances, an investor will want to move that property very quickly. The common rule-of-thumb for investors is to acquire a house for approximately 70% of the current appraised value, less any repairs. Sellers will be pleased to know that investors are often able to buy the house at a higher percentage if it is likely to have good cash-flow (i. e., placing a renter in the house at a lease rate in excess of the mortgage payment ).
The second best way to sell your house is to find an individual who is eager to take your house as-is, is able to botain financing, and will buy either at or slightly below the current market-value (i. e., as-it-sits value). These are individuals who may have recently relocated to your community and are eagerly seeking to get their children in a nearby school etc. It’s very important to realize that these transactions, although once very common, are becoming more rare. There are many homes on the market and those who are not willing to price their homes competitively are often likely to encounter a very protracted process in trying to sell that house.
What is the third best way to sell your house? This will depend on whether you have equity in your home. If you do have equity in your home, you’re likely to have much more staying-power. Therefore, you’re not as likely to need your to sell your home as rapidly as an individual who is facing foreclosure. However, if you do not have equity in your home, an excellent strategy to consider would be a mortgage assignment.
In a mortgage assignment, the homeowner would transfer ownership to the new buyer. The new buyer then would assume the mortgage payments. The seller does have recourse against the new buyer if that new buyer were to default on any of those payments. As in any instance, that seller would be able to foreclose on the new buyer.