Your Best Option Depends On Your Situation
When you need to part ways with your house there are many options available. Though there is no single best way to accomplish this task, there are multiple options that can fit your specific situation. Here we list the top ways to sell your house fast while maximizing your situation.
Find a local realtor
Though not the fastest of methods, in today’s market with the shortage of inventory, this can be much shorter of a process than a buyer’s market. The biggest pro of this strategy is that it offers the most cash for your property. However, there is much more costs, stipulations and time associated with this process.
One of the biggest costs is commissions. Realtor commissions cost approximately 6-8%. Other costs can include staging the home for sale, making necessary repairs/updates to past a home inspection, meeting the residential guidelines for a mortgage approval, and closing costs. These fees can add up quickly; however, if your home is great shape and you can afford the time then your sale price can offset the fees and put money in your pocket. In terms of selling your house fast, this is the slowest with the most work but reaps the largest rewards given the right circumstances and the buyer is willing to pay cash.
Transfer the mortgage to another party
This is a rare option but a definite possibility when a homeowner needs to get out of their current situation whether that be moving to another state or settling a legal matter. First check if you mortgage is ‘assumable’ by another party and then look at the stipulations of how that person would need to qualify for assuming that mortgage.
Most government backed loans are assumable (VA, FHA etc.) while others are typically not. One common advantage to this is the loan may have a lower interest rate than the current market. But, given the current historically low rates, this probably not going to be an advantage. There will however be no closing costs or time spent marketing the property, making it a quick option when you need to sell your house fast to a family member.
Sell it to a Wholesaler
Nearly 35% of home selling transactions in Detroit involve selling a home cash. That means the typical barriers from the bank can be bypassed. This is especially important if you need to sell your house fast or the property needs work or you need to sell your house fast. When sellers have a home that does not meet the requirements for traditional financing, this option is typically the best. Wholesalers work with investors that do not charge a commission but also cover all closing costs.
You may have seen your local Detroit wholesaler by the signs on major roadways that read, “We Buy Houses”, or you may have received a mailer or postcard advertising their services. Due to this being a niche market, wholesalers tend to be small business entrepreneurs.
When looking for a Detroit wholesaler, make sure it is LOCAL. Local wholesalers understand the market can come out to your property and understand the market in order to sell your house fast. The drawback to this strategy involves the price. Wholesalers work with investors and are looking for properties to flip, meaning they need homes that need work or are ugly houses, which is why they would not be the best option if your home is in mint condition because they need a margin of profit.
Another way they help is if the seller is behind on payments, taxes or just need to get rid of the home quickly. Wholesalers have helped thousands from foreclosure.
These are being tested in many major cities and it is still in its infancy in Detroit. Places like Zillow, webuyuglyhouses and others offer instant cash offers over the web. These offers the same speed and convenience listed with wholesalers with no inspections, commissions or any of the other hassle listed.
They are very exclusive though. A lot of the time, homes must be built after a certain year to qualify and they are not in every market. Most of these markets are test markets. Additionally, the speed and convenience comes at a cost when you need to sell your house fast. iBuyers typically pay less for homes than your local wholesaler. But judge for yourself! Check to see if they are in your area and compare!