Are you looking to sell your home in Modesto? If so, we want to share some possible alternatives to a traditional listing with a real estate agent. Many people aren’t aware of the different options that are actually available!
Selling your house can be an overwhelming task. The process of listing isn’t always as simple as is seems. You might have to make repairs. Then, there’s the cleaning, open houses, showings, inspections, appraisal, broker commissions, escrow fees and other hurdles to clear all while you are trying to move!
There are alternatives to a listing that can work much more efficiently in some situations. Consider some of these alternatives to listing when you are ready to sell your Modesto house!
Rent To Own
One option to consider, especially if you are not strapped for time, is to set up a rent-to-own structure. It may allow you to get full retail value for the home, sometimes more. There are MANY people out there looking to buy a home, but they fail to qualify for a traditional mortgage, they are short on a down payment or they have another mortgage on a different property.
These people may be likely to pay a higher-than-average rent in exchange for the chance at home ownership. To get started, the buyer will pay you an agreed upon “lump-sum payment” as an upfront commitment. This acts as a deposit should they fail to uphold their end of the deal. The buyer will also pay you a relatively high rent, with a portion of the rent going toward their down-payment.
After a year or two, the buyer must agree purchase the home outright. There are many ways you can set this up, but the contracts can be complex and you are putting a lot of faith in a buyer to follow through with the plan. Make sure the terms are favorable for you!
Hold As a Rental Property
Managing a rental property can be a lot of work, and you will still be responsible for repair costs, insurance and property taxes. Or, you may choose to pay a property management company to oversee the day-to-day details of finding tenants, collecting payments, routine maintenance and so on. Just remember that will be an extra expense you need to factor in.
Many people find owning a rental property is an excellent way to secure extra income, as long as the rent collected far outweighs the costs of ownership and management.
Selling to A Direct Cash Buyer or Real Estate Investor
When you choose to sell your home directly, you will likely save most out-of pocket-costs you encounter when listing. You won’t need to pay a listing agent, make repairs or clean up. With a direct sale to an investor, the process also typically runs much more quickly. Direct buyers are often paying in cash, so they are able to close without relying on bank funding.
At Offer4Cash, we work with you to provide a quick cash offer if your property qualifies. We can get the cash in your hand as soon as you need it, though we are flexible in terms of closing. If you want to close in as few as 7 days, that’s fine. If you need a month or two to get out, we’ll figure out a plan.
Selling to a cash buyer is a great option, especially if you are in a distressed situation. Perhaps you recently got a divorce and won the property in settlement. Or, you inherited a Central Valley property that you don’t want to deal with. Other situations may include tax default, impending foreclosure or bankruptcy. Understand you won’t get full market value from a cash buyer, but you will be able to sell more quickly and you won’t be responsible for all the traditional costs of selling a home (agent commissions, escrow fees, inspection fees, cleaning, repairs, etc.). You can sell your house as-is and move on with your life, and in some cases the expenses equal out. You may get as much money in the end with a cash sale as you would in a traditional sale minus all those expenses.
Many people are turning to auction services to sell their Central Valley and Sacramento homes. An auction is great for people who want to want to sell and have a definitive date. An auction will allow you to sell quickly, but it’s a gamble. You may or may not end up getting fair value for your property, so you have to decide if it’s worth the risk.
Factor in your mortgage payment, homeowners insurance, property taxes, repairs and general depreciation, and you’ll see that holding on to a home, that isn’t income generating, is only costing you money.