Here’s the straight scoop. If you’ve found this article, it probably means you are trying to figure out how to sell your house as quickly as possible. You may need to sell quickly for any number of reasons – possible foreclosure, divorce, moving, inheritance, tired landlord, major repairs needed, the loan shark is coming to break your legs, whatever. Five years ago, when anyone with a pulse could get a mortgage, any shack with four walls and a toilet was going for top dollar. Selling a house quickly wasn’t difficult at all. A few years earlier, my wife and I bought our first home together – a one bedroom condo in the suburbs of Washington D.C. as a cost savings maneuver. Mortgage payments were actually cheaper than rent and since I was a veteran, I could get the loan with no money down. We were one of three full price offers made on the first weekend the property went on the market. The owner had her pick and we were lucky to be chosen. Those days are overToday, we’re in the midst of a serious housing market crisis. Selling a house quickly by traditional means is nearly impossible. The law of supply and demand gives us two main reasons for this:
Banks are selling the homes they have foreclosed on for bargain-basement prices. And there are A LOT of these homes. Go to realtor.com and search for all the listings in your city or town. There are tons of homes available.
There are fewer buyers. Times are tough. People are losing their jobs, businesses are going under because everyone is scared to spend money, rich people are putting their money in really conservative investments because they took a bath in the stock market crash, and banks are a lot more strict about who they approve for a mortgage.Visit here sell my house cash Colorado Springs
Even in this terrible housing market, there is still a way to sell your house quickly – sell it to a wholesaler. A real estate wholesaler makes his living by finding great deals on houses and passing those deals on to investors who either want to hold on to the property and rent it out for years to come, or rehab (fix it up real nice) the home. These investor buyers don’t use conventional bank financing to buy houses, they use their own cash or funds they’ve raised from other private investors. This means they can usually settle on your house very quickly. After all, the reason settlements on house sales are scheduled 30 days after the the seller accepts a buyer’s offer is so the bank can get the house appraised and process all the loan paperwork. When dealing with cash buyers, this limitation is eliminated. Depending on how readily available the investor’s funds are, sometimes the settlement can be scheduled in a matter of days.
Selling your home to a wholesaler, though, has one major disadvantage – you must sell it at a significant discount. Real estate investors aren’t in the business of charity – they are in it to make money. Every house they buy must make them money. Whether they plan to hold on to it for years or fix it up and sell the house quickly, there must be a big profit incentive. And it’s not because they’re greedy (although, sometimes they are!). The profit incentive has to be big because the investor is taking on a lot of risk. Consider these scenarios:
What if the house requires much more costly repairs than they planned for?
What if the local housing values in that area continue to drop or drop faster than expected?
What if it takes a long time to find a tenant or they can’t sell the house quickly. Every day an investor owns a house that isn’t selling and isn’t occupied by a tenant, the investor is losing money.