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Who Will Buy My Ugly House? |
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In today’s
marketplace, new housing construction has increased dramatically
over the past five years. Moreover, home builders are increasing
efficiency, implementing “cookie cutter” designs, and building homes
at much lower prices. As a result, there are more and more new homes
that are affordable for lower income families. Where does this leave
homeowners that want to sell their older home that may be dated or
is in need of repair? Fortunately, today there are options that were
not readily available in the past.
Do any of the following hit home with you?
I listed my home with a Realtor but it did not sell
I tried to sell my home myself but no one was interested
My Realtor told me I need to fix my house first before they will
list it
I almost had my home sold but the buyer’s lender wouldn’t approve it
I have a vacant rental property and I’m being fined by the city
If any of these situations are affecting you, then you can now move
beyond hoping for the ugly house fairy to come down and buy your
house. There are viable options that you can look to for a quick
solution to your problem property.
If you have previously listed your home with a Realtor but it did
not sell, you are not alone. This is a very common problem in
today’s marketplace. As mentioned previously, your ugly house is
competing with new, inexpensive homes that are completely up to date
with current architectural designs and modern appliances. As a
result, many home buyers will not even look in older neighborhoods.
Consequently, your home will get less exposure on the market.
Realtors that represent buyers are going to direct their clients to
the newer homes. You may think that just lowering your price will
solve your problem, but most Realtors do not want to ruin their
comps (comparable sales). Comps are used to establish listing prices
in a neighborhood or area. Realtors get paid on commissions off the
sales price. As comps in a neighborhood drop, agents will have to
start lowering their listing prices, and as a result their
commissions will drop, as well. If you have a house that is in need
of updating or repair, a Realtor may not be your best option.
Many homeowners will try to sell their home on their own and very
often have no success. There are several reasons that selling by
owner is less effective. First, when homebuyers start looking for a
home, they either look at real estate publications put out by
Realtors or they hire a Realtor to represent them in looking for
their home. Most buyer agents will not show their clients homes that
are for sale by owner. One reason is that the agent is not aware of
the property. Realtors will typically look on the Multiple Listing
Service (MLS), which is a listing of all Realtor listed properties
for sale. The Realtor will search the MLS for the areas and features
in which their client has directed. This eliminates a large segment
of the market. A second reason that it is difficult for homeowners
to sell their house themselves is because it is more challenging to
market the house effectively. First of all, it is expensive to
advertise the home in newspapers over a long period of time. Also,
the newspaper ad is much less detailed than what is available with
Realtors on the MLS. Many home buyers are reluctant to go out of
their way to view a home without knowing more about it. It is also
very difficult to schedule viewings around a busy schedule, which
amounts to less exposure and less opportunity to sell the home
successfully.
There are many times that an agent is more than willing to list a
house once it is fixed up. This is usually not an option for most
homeowners. If they can afford to fix it up, they would have likely
done so already. In many cases, a homeowner’s only resources
available is the equity in the home, which they cannot access until
they sell the home. For those homeowners that have the money
available, the majority do not have the time or desire to manage
fixing the house. Managing a rehab project is time consuming and
very difficult, and even more so if the homeowner is currently
living in the home.
A surprising number of pending home sales fall out of escrow because
the home does not appraise. When a mortgage company lends money
against a property, they want to make sure they are properly
secured. When a mortgage application is submitted against a
property, the lender will send its appraisers to verify the
condition of the property. Depending on the lender, the guidelines
can be very strict. If a house has roof issues, foundation problems,
or other major defects, the property will not appraise or the lender
will refuse to issue a loan against it. When this happens, the
buyer’s loan will be disapproved and closing will not occur.
Many individuals have either inherited an older home or bought a
lower income property for a rental investment. One of the challenges
of renting low income houses is that they are typically in areas
that receive a lot of vandalism. If the property is vacant, it can
be vandalized very quickly. Once vandalized, it can be very
expensive to rehab the home properly. Additionally, if a home
remains unoccupied in poor condition very long, the city can begin
to fine the homeowner for possessing a substandard property that is
deemed to be a hazard to the neighborhood.
It is obvious that an ugly house can be a huge burden to a
homeowner. Luckily, today there are options available that did not
readily exist in the past. There are real estate investors that
specialize in buying and fixing ugly houses in any area in any city
in the country. Since the investor typically utilizes cash, there is
no mortgage company involved, which means that the sale will not
fall out of escrow. These investors do not care how ugly the house
is, including homes that have had fires. Since there is no mortgage
involved, the investor can typically close on the house in days, not
weeks or months. If you are a homeowner that needs to sell an ugly
house and wants to utilize a real estate professional, it is
recommended that you find an investor that is reputable in your
area. This will ensure that you have a professional experience and
sell the home at a fair price. WeBuyTheUSA.com is a reputable
network of real estate professionals that specialize in helping
homeowners in a variety of situations. Its affiliates are located in
every major market in America and most minor markets, as well. These
real estate professionals can help homeowners that have ugly houses
and pretty homes, including foreclosure situations. If you would
like to learn more about the details of this article, please contact
Chris Cates at www.webuytheusa.com.
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