Pitfalls to Avoid When Selling a Distressed Home

Pitfalls to Avoid When Selling a Distressed Home

Homes that are in perfect condition and don’t come with any liens or other financial baggage will provide the best value for sellers on the market, but not every homeowner has the luxury of paying off an entire mortgage or making substantial home improvements. Selling a distressed home may be more of a challenge, but it doesn’t have to become a nightmare. Read on to find out about a few of the most common pitfalls that come up while selling distressed homes to learn how to avoid them.

Delays in Sale

Homeowners who are struggling to pay their mortgages or their property taxes already should not delay when it comes to selling their homes. Doing so may lead homeowners to accept lower bids or, in the worst-case scenario, to lose their homes to foreclosure. It makes much more sense to sell as soon as a serious financial emergency comes up than to risk losing everything to the bank or the city.

Misjudging Property Value

The usual techniques for valuing properties don’t apply to distressed properties that require substantial repairs and will be sold in as-is condition. Instead of comparing the home to others in the area that are in substantially better repair, compare it to other distressed properties in the neighborhood to get a more accurate idea of how much it’s worth. Ensuring an accurate property valuation will avoid unnecessary delays that could cause an already stressful situation to become a financial nightmare.

Signing Agreements with Unqualified Buyers

Distressed houses are often unfit for traditional mortgage financing, which makes it difficult for homeowners to find a qualified buyer. It’s much easier to work with a we buy houses company that can make a fair cash offer upfront than it is to find a single buyer who is willing to pay cash for a distressed property. Working with a home buying company will save homeowners a lot of time and effort and prevent the need for making expensive repairs.

Forgetting About Closing Costs

Selling property via traditional channels are more expensive than most homeowners realize. The closing costs for distressed properties can add up to between 8% and 10% of the selling price when homeowners work with real estate agents. They’ll need to pay commissions, transfer taxes, title insurance, prorated property taxes, and, in some cases, escrow fees, HOA fees, attorney’s fees, and advertising costs.

Taking Negotiations Personally

Selling a home can take an emotional toll on homeowners, especially if they may not get as much money as they want for a distressed property or they are facing added stress from impending foreclosures. Try to keep a cool head throughout the negotiations process and be realistic about what issues the home has. When it’s important to make a quick sale, emotional responses will only get in the way.

Find a Better Way

Need to sell fast and don’t want to go through a ton of hassle?Perry Hall Investment Groupcan make a cash offer on just about any home without any unnecessary hassles or fees. Visit https://www.housesforcashbaltimore.com/to learn more about this family-owned, well-respected home buying company today.

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Phone: (410) 709–1913
Address:9111 Yvonne Ave.
City: Perry Hall
State: MD. 21236
Country: United States
Website: housesforcashbaltimore.com/