This is a really tough time to be selling a house. If you have your house for sale, you already know that.
- There are tons of homes on the market meaning you have lots of competition for qualified buyers.
- Buyers want foreclosure prices even if your home is in perfect condition.
- Buyers have so much to choose from that they want all the bells and whistles – hard surface countertops, hardwood floors, fireplace, deck, fenced yard, fresh paint, new carpets.
- And, again, they want foreclosure prices!
Add to that the decline in housing prices. Are you “upside down” on your mortgage? (Do you owe more than your house is worth?) Or, even beyond that, can you sell your home for enough that you don’t have to write a check at the closing table?
Selling a house is expensive! First, you have to discount to compete, then there’s the real estate commission, closing costs, survey, inspection, repairs after it’s been inspected, current year property taxes, attorney costs, recording fees – where’s the profit?
I feel your pain because we buy and sell real estate every month. Selling has always been the hardest part but now it’s harder than ever.
May I make a suggestion? If you don’t HAVE to sell, don’t. Here’s How.
Is it possible you can rent out the house that you have now and move to another home? Did you know that you can show your lender that you have a tenant in the property, that you’re not responsible for the monthly payment and, after six to twelve months, still buy another property? Yup.
That is, of course, if everything else on your credit report is satisfactory. If you qualify for a loan now, chances are you will still qualify when you convert your current home to a rental rather than selling it. The lender will credit 75 percent – 80 percent of the income you receive from your tenant as income to offset the expense of your property. If you’re renting for more than your monthly overhead, that percentage can actually wash out the expense of your rental property on your new loan application.
The great thing about this is that it allows you to hold the property until the market turns around, maybe slow but it always does, and then sell for a profit at a future date. Remember, you don’t lose money on it until you sell.
Not interested in being a landlord? Hire a property management company. But before you do, check them out to make sure they’re reputable and compare their services with others in your area.
If your house is not selling, don’t think you have to walk away, allow it to go to foreclosure or attempt a short sale. All of these “solutions” will cost you time, money and will negatively effect your credit. Putting a tenant in who can more than cover the cost of your monthly overhead on your current home is an excellent way to avoid taking a loss in the current real estate market.
Having trouble selling? Check out my book, The Essential Handbook for Selling a Home!
