Relocation, moving, and needing to sell your house. Each of these items, exclusively, are referred to as some of the most stressful, headache-wrenching life situations to endure. Now, imagine having to take on all three of these events at once! If you need to relocate to a different area, or even different state, and you own a house….well, you have a lot to prepare for. It isn’t all scary, though, because there are some decisions you can make that will ultimately make your life easier.
In many cases, homeowners are not attracted to the idea of being a landlord and dealing with tenants and managing a property. If you’re moving out of state, this can be especially difficult. You can always choose the option of selling your house to relocate though.
Selling with a real estate agent:
- Choose an agent – Begin by selecting a real estate professional who has a proven track record with multiple positive reviews. This doesn’t mean that you should choose your neighbor or your friend! You want someone who is the best at marketing your property, not that you know the best. After all, you’ll be paying them thousands of dollars in commission fees.
- Listing price – after having your property valued, come up with a listing price that makes sense to you. If you need to relocate, price the home to sell quickly (regardless, know that your home could take months to sell).
- Prepare the home to sell – consult with your agent and come up with a plan of action to prep the home to sell. This includes not only cleaning and staging, but make any necessary repairs required to get the property market-ready.
- Market and showcase – Prepare for buyer viewings and multiple open houses. Ensure that the house stays tidy and is in good and attractive condition for prospective buyers.
- Receive and negotiate offers – Navigate through offers once you receive them, and decide on terms of the sale.
- Accept offer and complete transaction – Once you accept an offer, prepare for escrow. In the mayhem of escrow, be sure to prepare for these scenarios: How quickly will you close? Will your buyers qualify? Are you prepared to cover all closing costs?
While selling through a local agent is what most people do, this is not a guaranteed sale of your home. Plus, you should be prepared for the home to take a while to sell – homes sit for an average of 69 days. If you’re relocating and are in a time-sensitive situation, this may be impossible. Not to mention all of the additional costs incurred (closing and transaction costs and agent commission fees), which could have been used to help aid your move.
FSBO
- List your property – for a fee of a few hundred dollars, you can list your property yourself on a listing service that will “talk to” platforms like Zillow and other property websites.
- Market your house – After preparing your home to sell, now it is time to market it. Develop a description of the home and pay for professional photos to add to your listing. Additional marketing activities include flyers, ads etc.
- Open houses and showings – Coordinate your showings and open houses, and be prepared to market those as well.
- Negotiate on your own – Without an agent to represent you, ensure that you are well versed with Missouri State Law as you are solely responsible for the transaction.
- Paperwork – Every transaction comes with paperwork, it’s unavoidable! Establish relationships with a good escrow and title company who will help walk you through this process.
While wanting to avoid agent commission fees is understandable, it does come with a price. A price on your time and energy. Agents are paid to market your property and push for a sale, which is something that not every homeowner is capable of. If you think a traditional sale takes too long, you will definitely not be okay with the length in selling on your own. This required more time and energy than any other method.
Potential Problems you might face when selling FSBO or Traditionally:
- Waiting to Move on:
- Rent Back: If you’ve found your new house in your new state and you’re waiting for escrow to close on the house you’re selling , you may find yourself in a pickle. Rather than paying for two homes and a temporary rental while waiting for escrow to close on your current home, opt to rent the home from your new buyer.
- Bridge Loan: If your new buyer doesn’t want to rent the home to you, you should speak to your lender about qualifying for a bridge, or swing loan. This type of loan carries higher interest rates and is only offered to homeowners with excellent credit and a lien-free home, but it can be beneficial. The loan uses your current property as collateral, in a sense, in order to purchase your new home.
Selling Direct
If all of this is just sounding like a lot of extra fuss and stress, you do have an alternative in selling directly to a cash buyer. By taking the “sell direct” route, you don’t just cut out all of the prep required in getting your home ready to sell, but you eliminate the waiting game altogether. Here is what the process looks like:
- Speak to an investor representative who will buy your house for cash
- A real estate professional will come and inspect the property and make you a fair offer.
- If you like the offer, you can accept and decide on the perfect closing date.
- The investor buyer will handle every aspect of the transaction including all of the paperwork and all of the closing costs (and there are no commission fees).
- On the day of closing, you hand over the keys and the company will make a cash deposit in your account.
If you need to relocate, especially if the move is time-sensitive, this option will give you the most flexibility and peace of mind. You won’t need to touch or clean a thing, simply pack up what you will be taking with you and leave everything else. No repairs are necessary. None at all! That’s a huge relief when you are just trying to move on to the next phase of your life. You won’t need to consider the problems mentioned above in waiting for your house to close escrow before you can take the next steps in relocation, because you control when the escrow closes. A company like St. Louis Realty Advisors can close in literally just one short week. When you don’t want to miss any opportunities, this can be a huge life-saver and convenience. Give us a call at (314) 326-4900 to learn more today.