Not every situation fits nicely into a traditional house sale. You may have circumstances that do not afford you the time or money to hire a realtor, upgrade your property, and find a potential buyer. You may need to sell your house fast to avoid foreclosure or bankruptcy. Or you just got a new job in another town, and you need to get out of your mortgage quickly.
Whatever your reason for selling, don’t let the pressure of the moment cause you to make a decision that you will regret down the road. There are lots of options for selling your house. For instance, you can sell your house as-is directly to a local buyer in the area. Below, we explore four options you should avoid if you need to sell your house fast.
1. A Traditional House Sale
What is a traditional house sale? You hire a realtor, appraise the house, make repairs, negotiate with potential buyers, and close the sale. While there are some benefits to a traditional sale – mainly that you get help from an agent – there are also some downsides to using this method to sell your house.
First, you’re not likely to sell your house fast. On average, it takes 60 to 90 days to sell your house through a real estate agent. That doesn’t include the time you spend repairing the house and going through a lengthy closing process. Going the traditional route may not solve your problem if you need to unload your property quickly or get out of your mortgage.
2. For Sale by Owner
Selling your own house is possible — but it’s rare. Only eight percent of recent sellers choose the FSBO route. It tends to be an option people decide when they already have a buyer lined up. Of those who did go it alone, 51% already knew the buyer of their home before the transaction, and 30% sold their home to a friend, relative, or neighbor.
If this sounds like you, you could strike up a deal with your buyer with the help of an attorney to draft and finalize the paperwork. Keep in mind, though, that you could sacrifice price by doing this. FSBOs sell for 5.5% less and, in some cases, nearly 6% less than agent-assisted sales.
3. Auction Sale
Auctioning your home to the highest bidder is a fast and hassle-free alternative to attempting to sell your home by yourself or listing it with a Realtor. A real estate auction involves qualified buyers making offers on your house on-site or online. An auction offers a simple sales process in which you set the terms of the sale. You can also sell your house and close in less than 30 days.
However, there are some serious drawbacks to selling your house at auction. First, there is a stigma associated with auctions. People automatically ask, “What’s wrong with it?”. Plus, you’re at the mercy of buyers who may not bid what you’d hoped to get for the house. Some buyers mistake auction for distressed properties and will automatically dismiss the house or lowball you.
4. Short Sale
A short sale occurs when the mortgage lender agrees to accept a mortgage payoff amount less than you owe to sell the property. The lender may forgive the loan’s remaining balance, giving you the freedom to get out of the mortgage. A short sale can be a way for you and your family to avoid foreclosure or bankruptcy.
However, a short is not a great solution overall. First, lenders do not always forgive loan balances. They may come after you for the remainder of the mortgage after you sell the house. Second, short sales can have a detrimental effect on your ability to purchase a house anytime soon. This may not be a good option for you if you are trying to start over with a decent credit intact.
Contact We Buy Real Estate to Sell Your House Fast
You don’t have to wait to unload your property. If you need to sell your house fast, contact We Buy Real Estate. We can look at your property, make an offer, and close in as little as seven days. Call 502-458-2722 and get a fair cash offer.