As financially damaging as the mortgage collapse of 2009 was, it wasn’t nearly as widespread as what we are currently facing. There are many people in various sectors who are currently not earning a paycheck or generating income. Savings have been exhausted and paying everyday bills has become more difficult. Fortunately, the government has thrown many homeowners a lifeline and halted mortgage payments for the time being. Before you blindly assume that you do not, or should not, make your payment there are a few critical items you should know. This information could have a dramatic impact on your situation in just a short few months down the road. Here are five things you should do if you can’t make your next mortgage payment.
1) Call Customer Service Don’t make the assumption that you don’t have to pay your mortgage based on what you heard on the news or saw on social media. Sure, there is a good chance that your lender is offering some kind of deferment, but it isn’t a guarantee. Even if they are offering something you need to know exactly what you are getting into. There is a big difference between a modification and a deferment. A loan modification typically will decrease your interest rate to a monthly payment you can afford. Any missed payments are tacked onto the back end of the loan. With a deferment your lender is simply allowing you to miss the next three months of payments without any negative impact on your credit. The catch is that they are going to ask for the payment in full after the 90 day period. If you cannot make the full payment your lender may start the process of foreclosure or take some other kind of adverse action. Individual lenders may handle things differently which is why it is so important to talk to customer service before making any decision. 2) Construct a 3 Month Plan As of right now nobody really knows when things are going to change. Some states appear to be less impacted than others, but it doesn’t mean they are totally out of the woods. If you don’t think you can make your payment you should come up with a short term three month plan. Simply put, how do you plan on making your payment after the 90 day period? Lenders don’t have to accept partial payments or even extend the deferment period if they don’t want to. To err on the side of caution you should assume that you need the full payment in order to stave off foreclosure. What is the likelihood of your business opening in the next few weeks or your paycheck bouncing back to normal? If it does, will you have the ability to accumulate the full payment? Without a firm plan in place you run the risk of losing your home. 3) Weigh Future Earnings There are many sectors impacted by COVID-19. Everything from restaurants to commissioned sales agents have seen a severe dip in income. While the short term goal is to protect your home from foreclosure in the next few months, you also need to think about the relative big picture. Is your employment or business in an area that will need time to ramp back up? Will you make the some income over the next 12 months? Will you be forced to change careers and prolong the period prior to generating income? You don’t want to simply put a Band-Aid on the problem if the cut is much deeper. It may be best to take action now, before things get too much worse. 4) Capital/Equity Evaluation If you can’t make your payment and your employment situation is shaky, you should do a full capital evaluation. In addition to basic checking and savings accounts you should look into your retirement funds, pensions, stock holdings and any other type of capital accounts. Perhaps, you could draw from these penalty free or with a discounted interest rate. If you have an accountant or financial advisor it is recommended to talk to them prior to making any rash decisions. You can also explore the option of a HELOC if you have equity. HELOC rates are nearing historic lows and can provide interest only payment flexibility. That being said, they also add to total amount owed, which will negate future sales profits. 5) Get a Cash Offer For Your Property If you know that your employment situation may not improve for several months, it is best to act now. Before you get any lates on your credit report or the real estate market dips it could be worth considering selling now. Selling now could put you in a better position to capture what equity you do have in your home and limit risk of losing your home to foreclosure if things don’t improve. Having an offer on the table would at least give you an idea of what you’d net and walk away with as a result of the sale. With us, getting a cash offer for you property is easy and fast….. Contact 180 Homes today! Doing nothing about your situation likely will not improve it – hoping and wishing will not make the problem go away. The reality is that you most likely have more positive options than you think. Start by reaching out to customer service, taking inventory on your income, assets and employment, and reaching out to us to see what we could pay in cash for your home. The quicker you are to take action the more likely you can make the best of a negative situation.
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In the ever-evolving Long Island real estate market, you might find yourself considering the option of selling a house as is. It’s an avenue that promises potential savings in time and resources. But like any property sale, it comes with its unique set of challenges and benefits.
Understanding As Is House Sales Selling a house as is means you’re offering the property without committing to any repairs or renovations. Essentially, what you see is what you get. In Long Island's fiercely competitive market, selling a house as is can be particularly appealing in scenarios like:
Benefits to Selling a House As-Is When you’re selling a house in its current condition, you’re essentially streamlining the sale process. Here’s what you stand to gain:
Potential Challenges to Be Aware Of However, with benefits come challenges. Because the house is sold in its present state, it might fetch a lower price than if it were renovated. Yet, if you factor in the costs and time of potential renovations, this pricing might still be well worth the trade-off. It’s essential to manage buyer perceptions. Being transparent about the house’s condition can prevent misunderstandings and foster trust. How to Sell a House As-Is on Long Island Navigating the Long Island real estate market can seem like a complex dance, especially when you’re exploring the less-trodden path of selling a house as is. To ensure you don’t miss a step and make the most out of your as-is sale, here’s a structured guide to steer you in the right direction:
Selling a House As Is to Cash Buyers If you’re looking to simplify the process of selling a house as is, cash buyers are your best bet. Cash buyers can finalize sales without the cumbersome traditional escrow process. Plus, you eliminate potential issues like loan denials. The absence of lengthy inspections or appraisals further hastens the process. Here’s how the process works:
The key to a successful home sale is partnering with dependable cash buyers. Local services with commendable reviews and straightforward methodologies are your best bet. 180 Homes stands out in this regard, ensuring a hassle-free selling experience for countless homeowners. Kickstart the process with a simple phone call or by submitting our online form. 180 Homes Makes Selling Your House As Is Easy Selling a property can be daunting, but the process becomes considerably smoother when you consider selling a house as is in Long Island. By considering cash buyers, you’re setting yourself up for a seamless transaction. Remember, with the right steps and approach, your property sale can be well worth the work. At 180 Homes, we don’t mandate a home inspection or appraisal to make our cash-as-is offer. For a smooth and stress-free property transaction, turn to 180 Homes. Learn more about 180 Homes’ simple as-is cash offers today! Not all properties are created equal. Some can become very difficult for homeowners, realtors, and real estate investors to resell. Depending on the holding costs and resell value fluctuations, many of these hard-to-sell properties can sometimes sell for less than they were purchased. While these properties might have some unique challenges for selling, investors need to ensure they optimize profits by selling at the right time. So what properties are among the toughest to sell and what makes them harder to sell? Why would savvy real estate investors buy them anyway?
In this article, 180 Homes will explore some of the most hard-to-sell homes, unsellable property types, as well as some of the strategies real estate professionals utilize to get the most value out of these hard-to-sell homes and properties. Hard to Sell Homes & Property Types There is an expansive list of reasons why a property might be difficult to sell. These reasons stem from locational preferences to property conditions, but a few obstacles don’t mean that you have an unsellable property on your hands. Let’s review some of the hardest to sell homes and property types. 1) Rural Land Rural lots and acreage can often be some of the cheapest and least expensive real estate to get into for individuals that are tight on capital. Many deals can be found on lots from coast to coast, with no credit check, owner financing, and minimal down payment. Some rural lands are very remote. While this is less of an issue when there is internet to provide work, there may be a lack of utilities, or simply not much to do. After purchasing, those that thought they could live there may end up abandoning their properties if they aren’t used to that type of lifestyle. There is also normally less demand, and a far smaller buyer pool for this type of property compared to, say, a condo in Manhattan. This could be seen as a drawback but it’s also advantageous for buyers. If rural land can be bought cheap while undervalued and held until they appreciate, there can be great profits unlocked. The holding costs on these properties can sometimes be less than $100 a year. 2) Mobile Homes Mobile home parks are making a notable comeback in investment circles. Demand for mobile home park living is surging too. There is a massive demand for affordable housing in the US, and mobile homes are a cost-effective solution. These properties can be incredibly strong cash flow producers. However, mobile homes are still associated with a certain stigma, and unfortunately, most mortgage lenders aren’t interested in financing them for applicants. That can make mobile homes very difficult to sell. In retirement areas where parks are surrounded by wealthy and luxury homes, there may be cash buyers, but many of these properties may need to be sold with seller financing. 3) Condo-Hotel Units As the economy regulated after COVID-19, condo-hotel units are coming back on the rental property market. Some of these units might be in an exclusive luxury building in prime locations. The arrangement can be appealing for some investors that would like their properties to double as occasional vacation homes. However, these units can be hard to finance and often require large down payments. Sometimes this isn’t a problem, but even the most prestigious developers and well-located condo-hotels have suffered from a lack of interest when times are tough. Some condo-hotel investors have even gone bankrupt due to a lack of movement. If you’ll use this property anyway, and can afford to hold on long term, a condo-hotel unit may be worth buying. Make sure to pay attention to the fine print and double-check the numbers before buying a condo-hotel unit. 4) Co-Ops Co-ops are a property type that is owned by a corporation, investors do not own units outright but the transaction is typically more financially stable than owning a condo or home. While co-ops are cheaper and a foreclosure is rare, co-ops almost became extinct in most of the U.S. during the last housing boom. Co-ops are considered hard to sell because they’re difficult to finance in the eyes of lenders, and a lack of true ownership can be a huge turn-off to other buyers. But a new surge in foreign investment and the ability to use co-op structures to qualify hundreds of international investors for visas at the same time is reviving their appeal. Investors need to make sure their co-op is in the right location to draw these tenants, and that the marketing and aesthetics appeal to the right buyers too. 5) Over-Sized Homes Over-sized homes are just one type of over-improvement in the real estate game. A mistake commonly made by regular homeowners and newbie investors is that size equates to value. It doesn’t matter if you have a 3,500 square foot home with 5 bedrooms if every other property for miles tops out at 3 bedrooms and 1,400 feet. Appraisals that support a higher loan amount will be a nightmare to secure. No matter how much others want to buy your masterpiece, they often simply won’t be able to finance it due to the skyrocketed value. Many experienced investors focus on the ugly house on the block for a good reason, the room for improvement is much more natural compared to the local listing. 6) Tiny Homes Tiny houses may be trending on TV and in the minds of many who seek affordable housing and financial freedom. However, many mortgage lenders won’t finance small square footage units making tiny houses hard-to-sell homes. This issue not only applies to creative new housing structures but condos as well. If end buyers can’t finance the property, they are harder to sell. But if the buyer pool is big enough there can be seller financing options, or some cash buyers lurking out there that could work for the transaction. Luckily, the holding costs on these properties can be lower while you are waiting to resell. 7) Stalled Construction Projects The financial crises of the early 2000s have left many communities littered with stalled and failed construction projects. From entire new communities to hotels, to strip malls and homes, construction stalled for a long time. Buying a half-finished property can be difficult in terms of navigating permits, code issues, and financing. But the data shows that construction REOs and non-performing loans have made up the bulk of distressed bank inventory for a while. That’s a chance at even bigger discounts, and less competition. For those that can get in and finish the work, or re-brand the project and raise more capital, there can be substantial profit margins for this “unsellable” property. Learn How to Get Rid of a House that Won't Sell with 180 Homes These hard-to-sell properties can be both risky and highly rewarding with an investor that is experienced in real estate marketing and has the reserves to cover holding costs and set up pre-arranged exits. Just because a house or rental investment might be viewed as unsellable property, with the right experience and sales strategy, even the hardest-to-sell home can find a happy buyer on the market. 180 Homes specialize in CASH AS-IS offers to help expedite your real estate experience. Contact 180 Homes to get your hard-to-sell home or property on the market today! Need to sell your house fast on Long Island, New York? You’re not alone. Whether you’re moving for work or buying a new place, selling your house fast is often a top priority. This guide will help you do just that, with a special focus on how selling to cash buyers can speed up the process.
Understanding Long Islands Housing Market Long Island has a busy housing market. However, selling your house the usual way can take some time, depending on the market and how appealing your house is to buyers. Knowing this can help you sell your house fast. Getting Your House Ready for a Quick Sale Usually, to sell your house fast, you might need to make it look nice for potential buyers. This often includes some common steps: Home Improvements This could be as simple as a new paint job or fixing small things here and there. But, these steps cost money and can delay when you can sell your house. Staging and Photography Making your house look good through staging and professional photos can attract buyers. But again, this takes time and money. Now, let’s look at how selling to a cash buyer can be different: Cash Buyers-Saving Time and Money Cash buyers are a quicker option. They buy houses “as is,” meaning you don’t have to spend time or money on home improvements, staging, or photography. This speeds up the selling process, helping you sell your house fast and save money. Choosing How to Sell Traditional Selling: The usual way is to list your house with a real estate agent, who then shows your house to potential buyers. This can take a while and usually costs more due to agent fees. Online Listings: Listing your house online can reach more people, but still requires time and effort to manage. Cash Buyers-The Quickest Way:Cash buyers offer a fast and simple way to sell your house fast on Long Island. They make competitive offers and buy your house “as is,” cutting out the need for repairs or improvements. This way, you can close the deal much faster compared to the traditional methods. Finding Good Cash Buyers on Long Island It’s important to find trustworthy cash buyers. Look for local services with good reviews and clear processes. Here at 180 Homes, we pride ourselves on making the home-selling process as easy as possible and have helped hundreds of people sell their home quickly. Getting started is as easy as a phone call or filling out a form online. The Process of a Cash Sale Selling to a cash buyer is easy. Here’s how it works:
Benefits of a Cash Sale A cash sale comes with many benefits that can make your life a lot easier:
180 Homes Expedites Your Real Estate Experience To sell your house fast on Long Island, preparing your house, picking the right way to sell, and especially considering cash buyers, are important steps. Following this guide can help you sell your house fast, letting you move on with your plans without delay. 180 Homes is here to make selling your home fast and easy. Our cash as-is offers can expedite the real estate process so that you don’t have to worry about finding the perfect buyer. Contact today to learn more! Nothing is more beneficial to your long term financial health than the right rental property. Sure, quick flips and rehabs are great for the short term but a strategic acquisition of a rental property can completely change your portfolio. Not only are they a source for surplus monthly cash flow, but they also build equity for the future which you can use can use as a means to purchase additional properties. It is not hyperbole to say that all it takes is one key rental property to get your portfolio headed in the right direction. Here are five steps to purchase your first rental property.
1) Understanding Financing If you have been toying with the idea of a rental property purchase the first thing you need to understand is how the financing works. There is a huge difference in owner occupied and investment property loan underwriting guidelines. For an owner occupied property there are loan programs that require just 3% down payment, credit scores under 600 and decreased reserve requirements. With any investment property you should anticipate needing a credit score of at least 680, 20% down payment and possibly six months of reserves in the bank. Additionally you also need to factor in tax and insurance escrows as well as increased closing costs. Lenders will scrutinize loan applications for a three family investment property much more closely than they will a single family owner occupied one. Investment properties are considered a higher risk and you can expect the process to reflect that. 2) Choose Market(s) When it comes to purchasing a rental property you should find the market as opposed to finding the property. What that means is that not every property makes a good rental property. A beautiful home on 30 acres in the middle of a rural area doesn’t have the same renter pool as one in the middle of a booming city. Price is always important on any purchase, but not the most important factor when it comes to buying a rental property. You need to narrow down a market, or two, that can sustain rental demand for both the short and long term. The right market not only gives you security but allows you flexibility down the road. If the market continues to trend upwards you can comfortably increase your rent. In poor markets you are often left to take whatever tenant you can find, usually on their terms. 3) Evaluate Individual Investment There are plenty of items to consider on every prospective purchase. Before you do anything else you should decide how you will manage the property. Are you able to manage the property yourself or do you need a dedicated property manager? If you have a full time job that doesn’t allow you to take phone calls or get away during the day you should strongly consider a property manager. Whatever you decide has a definite impact on your bottom line. A property manager generally charges 10% of the monthly rent received. In addition to management you need to evaluate how much, if any repairs are needed, as well as monthly taxes, utilities and insurance. Also, review the title to see if there are any prospective issues as far as property lines, liens and anything else. 4) Run The Numbers No two rental properties are exactly the same. Numbers you run for one property may not be the same for a property even in the same town. From the outside you may think that monthly cash flow is simply the rent received minus the mortgage payment and any utilities. Sure, this is a huge part of that formula but there are other important factors. You need to make sure you are realistic with your numbers before you buy or you will be left disappointed after. For starters, is the monthly rent a realistic and sustainable number? Making a few simple changes doesn’t mean you can tack on a few hundred dollars to the rent. You also need to be realistic with what utilities you are paying for. Most importantly you can’t ignore seemingly minor items like snow removal, lawn care, maintenance items and a reserve fund. Only when you know all the numbers associated should you move forward. 5) Make Your Offer You don’t need to be a seasoned investor to understand that the lower you get the property for the higher your monthly cash flow. It is critical that you make an offer that works for you. Too many investors fall in love with a property that they fail to see the big picture. They want to make the acquisition so bad that they ignore the numbers. Before they know it their projections are blown up and the deal they thought they were getting is gone. Even if it means missing out on a property or two you need to stick to your guns and stay true to your numbers. If not you will be behind the eight ball, chasing profits right from the start. The goal is to acquire a property that you can make money on, not simply add to your portfolio. A lot has changed in the world of real estate over the last decade. As difficult as it may be to believe, the mortgage collapse was over ten years ago. A defining term that emerged shortly after the collapse was the “short sale”. There is a good chance that even if you were in real estate you probably never heard of it before 2008. In the years following, short sales were the driving force behind a majority of all total real estate transactions. While the overall number has greatly declined in recent years, there are still a good number of short sale transactions happening every day. But what is the short sale process and how does it work?
In this article, we’ll explore what a short sale is, how a short sale works, as well as the guidelines for successfully completing a short sale. With the help of 180 Homes, understanding the short sale process is simplified. What is a Short Sale? A short sale, commonly also known as a pre-foreclosure sale, is a transaction within the real estate industry refers to a sale that occurs when a financially struggling homeowners sells their property for less than the original amount due on the mortgage. Some homeowners will decide to complete a short sale of their fome if they’re in fear of a pending foreclosure which could plummet their credit score. A short sale will still potentially lower a person’s credit, but not as much as a foreclosure would. The property buyer is a third-party entity and all proceeds from the sale go to the home’s original lender. The lender can then choose to either forgive the remaining balance or try to reach the selling homeowner for a deficiency judgement. A deficiency judgement requires the homeowner to settle the remaining balance. Some states will allow a short sale to forgive that difference. How Does a Short Sale Work? Prior to the short sale process beginning, the lender must sign off the decision to move forward with a short sale. The lender is required to document the justifications for the short sale to ensure they don’t lose money as the lending party. Due to the need to carefully track the short sale, they can be a lengthy process that can take up to a year to complete. A short sale is not a guaranteed tactic for negating a mortgage’s balance once the short sale is completed. While the original lied instated by the lender might be waived, the promise to repay the other parts of the mortgage can still be enforced. Since borrowers interested in completing a short sale need lender approval, they will quickly learn what needs to be settled. Steps of the Short Sale Process It is important to understand the short sale process before plunging into the steps required to successfully close the deal. Both as a homeowner and an investor, there is a lot of money and legal logistics involved in order to close. Here are the five basic steps associated with almost every short sale transaction. Homeowner Decisions One of the common themes when talking to homeowners in default is the speed in which it happens. Sure, it takes several months to get into foreclosure, but it isn’t an overnight decision. There is typically a financial hardship, medical emergency, or sudden reduction in income that sets the short sale process off. A few weeks late on the mortgage turns into a month and in the blink of an eye foreclosure papers are served. During the housing crisis, the glut of foreclosures caused lenders to come up with alternatives and many of those are still available. Between loan modification or principal reduction, most lenders would much rather you stay in your home than go into foreclosure. The most common foreclosure alternative is a short sale. This is essentially the lender agreeing to accept less than the principal amount owed. For a homeowner the stain of a short sale is less than a foreclosure or bankruptcy. For a lender they can salvage something from a depreciating asset without having to add the property to their portfolio. Before anything can happen, the homeowner must accept their situation and decide to take some kind of action. Reverse Application From a lenders perspective, the short sale process is very much the reverse of a traditional loan application. As much as a homeowner may want to short sale, the lender must approve it first. Once a homeowner decides on a short sale they need to show the lender that they legitimately can no longer make the regular payments. The lender will ask for several items to justify a hardship include paystubs, tax returns, bank statements and a hardship letter. The lender is not going to just let a homeowner walk away from their property because they want to. You don’t necessarily need to be three or four months late on the mortgage to get short sale approved, but you do need to show that there is, or will be, a financial hardship. Once all items are submitted to the lender they will either accept the short sale application or reject it. If accepted they will move on to the property valuation part of the process. Appraisal/BPO As with any real estate transaction, the seller wants to walk away with as much money as possible. In a short sale the lender is willing to sell the property at a discount, but they will not just give the property away. To determine fair market value, they will either employ a local real estate agent for a brokers price opinion(BPO) or order an appraisal. Nothing will ever truly show a property’s value except listing it, but these methods will give the lender a good snapshot of what is going on. If the property is not currently listed, the lender will recommend a price and if there is an offer already in place they will use this information to respond. As with any other listing, the more work needed and the weaker the market, the less leverage the seller has when completing a sale, regardless of it's a short sale or not. Negotiation Appraisals and BPO’s are largely subjective. While these estimations of value are not exact, they do play a part in the lenders’ perception of the property’s value and ultimately the price the lender is willing to sell the property for during the short sale process. Once the lender receives the report they calculate the bottom line at which they’re willing to sell the property and the negotiation begins. As a seller pursuing a short sale, you can put yourself in a good negotiating position by partnering with a cash buyer and short sale negotiator who has experience negotiating distressed transactions. They can take lead on your behalf and leverage their strategies, tips, and tricks to put yourself in the best position possible. As far as timeline, short sale negotiation times have been greatly reduced but can still take several months under the right circumstance. If you pursue a short sale you need to accept, and embrace, negotiation. Closing Once the terms of the purchase are accepted, the closing for the short sale process looks very much like any other transaction. What makes things a bit trickier is the fact that you may need to get the homeowner out of the property. However, there may be monetary incentives from the lender or binding terms of a contract that favor the buyer. At the closing table the process is the same for a short sale, just a little more paperwork for the attorney. The bulk of the work is done once the lender accepts the asking price. There are state specific rules for foreclosure and short sale that should be reviewed prior to moving forward. Regardless of what side of the transaction you are on, a short sale can be a viable alternative in the right situation. Makes sure to do the proper research and evaluate all options before turning to the short sale process. Simplify Selling Your House with 180 Homes When in a tough financial bind, it’s important to know all of your options. As a homeowner, a short sale might save you from a nasty foreclosure that could jeopardize your future living situation. Instead, enlist the help of experts to help you navigate the short sale process and lead you towards the right solution for you. 180 Homes provides cash as-is offers for homeowners looking to expedite the real estate process. Contact Us today to learn more! A seller’s goal should be to find the highest offer with the strongest probability of closing. While a near asking price offer may look great after initial review, it may be full of unnecessary contingencies and red flags that may put you in a bad position as the seller. What if you knew what to look for at the beginning of your home-selling journey? What if you knew what questions to ask of an interested cash buyer that would prepare you with the necessary information to make the best decision possible?
In this article, 180 Homes explores some of the markers that you should keep in mind when working with a cash buyer on the sale of your home. 1) Strong Term Offers A strong cash buyer should be offering to purchase the property “as-is” in its current condition with no expectations of the seller doing any work to the property before close of escrow. Contingency periods should not be unnecessarily long, and should fall in the range of 3 to 10 days depending on the complexity of any necessary due diligence. The earnest money deposit should be substantial and submitted to escrow within 72 hours of offer acceptance or sooner. While cash sales typically close quicker than traditional financed offers, there should be no rush from the buyer’s side to close escrow. In fact, there is a flexibility that should be expected of the buyer to close on the Seller’s timeline! 2) Access to Capital One of the basic items investors should provide when submitting an offer is a proof of funds letter. This letter is typically from an attorney or lender that shows they have the funds available to to clear their offer amount and close escrow. However, you shouldn’t give this a quick once over and assume everything is ok. There are two important items you need to look at to confirm: the date of the proof of funds letter and where the funds are coming from. The date of the letter is important because, if it is months old, they may have depleted the account. A very outdated proof of funds letter may also suggest the investor is not telling you the full story and could be an indicator of things to come. It’s also extremely important to note what kind of an account the funds are coming from. If the money isn’t in a liquid account such as a checking or savings account, there could be red tape and hurdles to access it. Without timely access to their funds, an investor may have to jump through hoops to bring funds to the table to close escrow which could risk pushing out the agreed upon close date. 3) Proven Track Record Credibility may be one of the most important things to confirm in a potential buyer before accepting their offer. Doing so is easy if you know what questions to ask and where to look to confirm a buyer’s track record. Always ask for referrals and reach out to people they have worked with in the past for feedback on how their transaction went. Research the buyer online and dig into their testimonials and get a sense of what other people are saying about them. Look at their social media pages and the comments on their recent posts to see how they interact with their customers and followers. Ask the buyer for a list of active or past projects in your area to get a sense of how active they are and what their local experience is like. 4) Responsiveness Lack of timely response and bad communication can sour any relationship. This is even more amplified when the stakes are high you’re trying to selling your home in an efficient and stress-free way. Real estate transactions require a significant amount of back and forth, whether it be in regards to offer terms, paperwork questions, deal structuring, signatures, etc. If the buyer and/or their agent respond to a call or text within a reasonable amount of time or return contract changes in a timely fashion, something fishy may be looming. Be aware that there are buyers out there that don’t practice ethics and integrity that may just be spinning your wheels – bad communication can often be a tell-tale sign things are going in a negative direction SUMMARY All cash offers are not created equal. Look out for both strengths in a cash buyer as well red flags investors include in their offers. Picking the right offer is important, but picking the right buyer can make all the difference in a quick, smooth transaction. Work with an established buyer that can close! Get a Strong Cash Offer with 180 Homes!! There are pros and cons to buying flipped houses. The main benefit is that you won’t have to manage any major renovations on your own. It’s the most convenient type of house to buy unless you’re going to buy a brand-new home—but then you’d be paying a lot more.
Of course, there are horror stories. You might have heard about homebuyers moving into a flipped home only to discover that the “renovation” was little more than cheaply applied makeup. A new carpet covers rotting floors, and shiny new kitchen cabinets are hiding clunky plumbing. The homebuyers realize that their “flipped house” is actually still a fixer-upper. Believe it or not, there’s another way you can reap all the benefits of a flipped home, without any of the cons. Consider pre-purchasing a flipped home. Why Should You Consider Pre-Purchasing A Flipped House A presale home is a property where you can start the home-buying process before it’s move-in ready. Many presale homes are houses that are still under construction. But you can also pre-purchase a home that’s in the process of being flipped. There are (at least!) four major advantages to pre-purchasing a flipped home:
Let’s dive into each of these benefits. 1: Avoid Open-Market Competition One of the most difficult aspects of buying a home is dealing with the competition that comes with the open market. There is a limited number of homes on the market with plenty of buyers ready to offer on a good opportunity. While a house might initially fall within your budget, it could attract interest from several other buyers, and the price could escalate out of your range. A bidding war could ensue and drive an affordable home into unaffordable territory. Inexperienced homebuyers, in particular, mistakenly up their bid when they can’t afford it and wind up purchasing a house that’s far out of their budget. When they finally move into their new home, they’re “house poor”. But when you pre-purchase a flipped home, you can avoid the open market altogether—so long as you know where to look for the opportunities! Here at 180 Homes, for example, we manage our off-market inventory of properties that are going to be flipped or are in the process of being totally renovated. While under construction, these properties don’t have traditional listings. If you take the initiative to reach out about one of these off-market properties, then you could potentially secure yourself a deal on a new flipped home without any of the bidding-wars that you’re likely to face on the open market. 2: Contingencies and Protections A common fear when buying a flipped home is that the home has not truly been flipped. You don’t want to put down six figures on a house only to discover that you paid $100,000 more than what it’s really worth. Inexperienced homebuyers can easily miss red flags that suggest a renovation was done poorly. But when you pre-purchase a flipped home through an established company, you’ll have all sorts of protections that ensure you’ll be moving into exactly the place that you paid for. When purchasing one of our presale homes, for example, you are afforded all the normal contingencies that you’d get with a standard home listing:
Virtually all the protections you’d get on a standard home purchase would be available to you when purchasing a presale home by 180 Homes. Furthermore, you can still buy the property using traditional financing, including FHA loans. Typically, the transaction will begin while the home is still undergoing renovations, but your contingency period and escrow period may not begin until the renovation is complete. 3: Stronger Creative Influence House flippers may know a thing or two about renovations, but they may not complete the home with the specific finishes you’d like to see. Although it’s nice to have renovation work completed for you, some buyers of flipped houses feel as though they missed an opportunity to give their new abode a personal touch. When you pre-purchase a flipped home, you may get to have a stronger creative influence on the finished property as long as your chosen design features fit the overall budget and timeline of the renovation. Since you’re starting the transaction while the home is still being renovated, you may get to choose certain design features, like:
4: No Emotional Rollercoaster Arguably the best thing about pre-purchasing a flipped home is that there’s no emotional rollercoaster. It’s a tragic but all-too-common story: you fall in love with a home on the open market. You walk through the house and envision your family, your furniture, your future. The house falls within your budget, and you’re able to get the financing that you hoped for. You make an offer, and the seller seems interested… …and then you’re informed that you’ve been outbid. Desperate, you make a counter-offer …and it dissuades the other. You rejoice, thinking you’ve won the home… …only to be informed that you’ve been outbid by a new buyer. And this time you can’t beat the price. Home buying can be an emotional rollercoaster, especially if you’re a first-time homebuyer or if you’re trying to buy a home for your family. But it doesn’t have to be. As mentioned earlier, when you purchase an off-market home through a company like 180 Homes, you won’t have to compete with other buyers. Nor will you get excited about a new home, only to discover that it’s not the house you thought you were getting. When you pre-purchase a flipped home, you’ll get exactly what you expected when it comes to home price and home quality. There’s no heartbreak involved. SUMMARY There are significant advantages to pre-purchasing a flipped home. You can find a house in an off-market inventory and avoid the bidding wars that happen on the open market. You’ll have all the protections that come with a standard home listing, and you may even get to choose certain design features on the property. Plus, deciding to pre-purchase a flipped house can save you from the emotional rollercoaster of the traditional home buying process. Contact 180 Homes to learn more!! You can take two main routes when selling a home: listing the property or searching for cash buyers. In today’s fast-moving real estate market, sellers will likely have no trouble with either option. However, there are a few factors to consider before deciding which path to follow.
Cash buyers have become increasingly common in the last few years as more and more people have begun real estate investing. Working with a cash buyer can be tricky for sellers, as they may be unfamiliar with how the home selling process works. Many sellers fear that cash offers are too good to be true, but this is simply not the case. There are several situations where a cash buyer might make the most sense when selling your home. In this article, 180 Homes explores the pros and cons of selling your home to Cash Buyers vs the pros and cons of selling your home by traditional listings. Selling Direct To A Cash Buyer Cash buyers are exactly what they sound like: buyers ready to purchase your home without a mortgage or long-term financing method. They typically buy properties to renovate or rent and are willing to move quickly to land deals. If you are curious about selling your home to a cash buyer, there are a few things you should consider first: Pros: The most significant benefit of a cash offer is the potential for an overall easier transaction. Cash buyers are usually ready to place an offer on the home and close in a very short amount of time. They do not need to wait for a bank’s approval to sign the papers and finalize the purchase of the property. This can save sellers the stress of financing challenges that could delay the sale of the home. For these reasons, cash offers typically result in faster closing timelines. For example, here at 180 Homes, we average a ten-day closing period as opposed to the traditional 30-day closing. Buyers paying cash will also typically forego a traditional home inspection or appraisal to make their offers more favorable. They are in the business of upgrading, renovating and doing work to add value to the properties they purchase. Many of them anticipate purchasing your home “AS-IS” in its present condition, meaning you’re expected to do absolutely no work to the home before closing. An additional benefit: Cash buyers will often offer to pay for the Seller’s Closing costs and typically do NOT expect to be paid a commission as a result of the sale. These two benefits in combination can save sellers between five and eight percent of their net profits on average during the transaction. 5-8% is a chunk of change! Not only will selling your house to a cash buyer help save on closing costs and commissions, it will also help maintain your privacy and well-being during the sale. Many cash buyers will not request multiple viewings or extra photos of the property. You will not have to have a horde of people through your home! This privacy can be especially important as many individuals continue to minimize close contact with strangers as a result of COVID-19. Cons: The number one tradeoff for a fast closing and simple transaction is the prices. Sellers will likely find that cash buyers tend to offer lower amounts than a traditional home-buyer would be able to. Many cash buyers are going to rehab or rent the property, and to make that profitable need to minimize their upfront costs. Unfortunately for sellers, this can result in an underwhelming offer. Sellers should also be prepared to handle any negotiations attached to the sale. Investors will typically gather information about the property and even request to speak with you one on one during the process. In a traditional real estate transaction, negotiations are handled by real estate agents. Try not to let this intimidate you! As long as you do the right research and background check the cash buyers you’re considering (google reviews are a great start!) you should not be concerned about the negotiations! Listing A House For Sale The most common way to sell a home is to work with a real estate agent and list the property for sale. By selecting the more familiar option, sellers can leave the heavy lifting up to a professional. That being said, there are still some factors to consider before listing a house for sale: Pros: Exposure is one of the most important reasons sellers choose to list their homes with an agent’s help. A real estate agent will list your property and walk you through the marketing steps necessary to bring in offers. These include taking photos of the home, hosting open houses, and listing the property online. These tactics could open the door to multiple interested buyers and increasingly high offers. There is no guarantee that a bidding war will happen, but listing the property with the help of a qualified agent can boost your chances of selling the property for the price you want. Listing a house for sale can also help you avoid some of the more challenging aspects of a typical transaction. You will not be responsible for reviewing contracts, negotiating offers, or even coordinating viewings of the home. An agent’s expertise can guide you through the home selling process, thus taking away some of the more stressful components associated with selling a home. Cons: Listing a house does have its drawbacks, namely added costs in the form of agent commissions. Sellers are typically responsible for some, if not all, of the fees that help pay both the buyer and seller agents. These costs can range anywhere from five to seven percent of the closing price. Let’s say a property sells for $685,000 — the commission will be between $34,250 and $47,950. Sellers may also be responsible for additional closing costs that could further reduce the takeaway money from the sale. Another thing to consider when listing a property is the potential for additional contingencies to be added to the sale that aren’t relevant when selling to a cash buyer.. Depending on the property appraisal and inspection, sellers could be responsible for making repairs before they move out of the house. Unfortunately, home inspections often reveal problems about a property that sellers may not even know about. This can invite buyers to request repairs or even de-rail the transaction before the buyers officially close on the property. Together, these factors could undermine the profits from the sale of the house. Summary Deciding to sell your home is a big decision to make, both emotionally and financially. Prepare yourself for the process by learning more about traditional listings vs. cash buyers. You may find that listing your home relieves some of the stress during this time; however, you may need the speed that only a cash buyer can provide. Each situation is going to be different, but take time to consider how either of the above routes could allow you to maximize your profits when selling your home. It’s a great time to at least explore the option of selling a home for cash, but make sure you know what to expect. Contact 180 Homes to learn more about our Cash As-IS offer to expedite your real estate experience today! In many markets, property values have taken off to levels not seen in well over a decade. It may be a great time to explore selling your home. Depending on the condition of your property, the buyer may be a cash buyer. While this is a typical practice, there are many nuances and slight differences when working with a cash buyer instead of a traditionally financed one.
In this article, 180 Homes explores the steps to consider when selling your home for cash, as well as some factors to keep in mind when accepting a cash offer. There are many benefits of selling a house for cash, and 180 Homes is here to help! The Process of Selling a House for Cash Selling a house for cash might be a rare circumstance, but you shouldn’t be overwhelmed by the process. Here are the steps for successfully selling a house for cash. Step 1: Quality Cash Buyers The first step in selling your home for cash is finding the RIGHT buyer. Most cash buyers are quick and responsive and are happy to submit a cash offer should you be interested in one. Cash buyers don’t need more than 24 hours to get you an offer. When selling a house for cash, it’s always best to get multiple offers if possible. When ready to decide, remember that price is not the only factor to consider. The right buyer should offer the ideal price, inspection period, timeline, and terms that put you in the best possible position to sell your home for cash. Questions to Ask Cash Buyers There are many factors to consider when contemplating a cash offer for your property. Here are some questions you should ask before moving forward in the process
Step 2: Compare Offer Terms Most buyers have specific offer terms to consider before moving forward, even when selling a house for cash. Offer terms protect all parties involved and usually consist of these key factors:
Common Red Flags Make sure you know every section of your contract before accepting an offer. Take a few minutes and review the common cash offer red flags that investors may include. Step 3: Accept and Offer and Open Escrow When accepting offers, you’ll either sign a hard copy version of the offer or use an online contract signing service like DocuSign to execute the contract. Once you and the buyer have signed, escrow and title companies enter the transaction to help research any questions with title and coordinate communication. If the seller is unsure or has no preference for who helps with escrow/title, the buyers might have contacts. Once the offer is accepted, the transaction timeline begins! Step 4: Monitor Major Deadlines/Complete Paperwork Sellers often avoid selling solo because of the paperwork associated with the process. The process is simple with an efficient escrow or Transaction Coordinating Company to help execute these documents. Disclosures are always required when selling your home or a piece of property (realtor or not) and give the buyer a clear picture of exactly what they are buying. Work with a local expert to fill out necessary disclosures for your property. Step 5: Closing Escrow There are several documents needed to complete the closing. It is always a good idea to enlist the services of a real estate attorney. Not only will they expedite the closing process, but they offer protection. Even experienced real estate investors are not versed in every contractual scenario. With thousands of dollars of EMD at stake as well as potential litigation, it makes financial sense to spend the money on a good real estate attorney. 180 Homes Can Help With the Process of Selling a House for Cash! There are many benefits of selling a house for cash but make sure you understand the process! It’s a great time to at least explore the option of selling a home for cash, but make sure you know what to expect. Contact 180 Homes to learn more about our Cash As-IS offer to expedite your real estate experience today! |
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