Deciding to sell your home is an exciting and intimidating process. Whether you are downsizing or moving to a new state, there are various steps a homeowner must take. Differing variables affect the flow of this process, and there are ways to prepare for success.
The size, style and age of your home all impact its ability to sell. Fortunately, you may alter those features through renovation and design. The neighborhood your home is in and the shape of the market are variables you cannot change. If specific aspects are affecting your ability to sell your home, know that you have options.
Vacation Rental
When you are trying to sell a property during a market slump, you can ride out the low while earning some passive income. Many homeowners utilize their property for short-term vacation stays while waiting for the market to pick back up. Sites like Airbnb and VRBO provide you with the tools to turn your vacant home into a profitable business.
If you decide to convert your home into a vacation rental, there will be some outside expenses to consider. For the safety of the homeowner and the guests, you will need to purchase host insurance. This covers damage done to your property and injuries experienced by guests. Many vacation rental sites provide this service for purchase through their business.
You will also need to purchase necessary items frequently to keep your rental stocked. Paper towels, toilet paper, shampoo, conditioner, soap, dishwasher detergent and more will be extra expenses to consider. Hosts should also prepare house rules to maintain a pleasant atmosphere and keep their valuables in a safety lockbox.
Long-Term Rental
If the idea of guests coming in and out of your home frequently is unsettling to you, you can also find a long-term tenant. Unlike a vacation rental, you will not have to stock supplies for a long-term occupant. When someone rents a property for months at a time, this creates a consistent income for the homeowner.
Extended rentals allow the landowner to receive passive income while moving into a new home. If you have paid off your mortgage and are purchasing a new home, you can charge a similar monthly rate to the tenant to help with current bills until you sell your home.
When transforming your property into a rental, you will need to treat it like a business. You will need to research rental rates in your area to set a reasonable monthly payment plan. Homeowners may also need to update paint, fixtures and other elements to keep a safe and profitable rental property.
Adjust Your Price
If you are not comfortable with renting your property and need to sell your home soon, you may want to adjust your price. You will need to conduct a comparative market analysis (CMA) when evaluating a profitable and effective listing.
When performing a CMA, you must evaluate the size, age and position of your property. Compare these features alongside the features and values of homes in your neighborhood to settle on a reasonable price. Once you decide on an affordable cost, you will have higher success with selling your home.
Short Sale
After adjusting your home's price, you may consider engaging in a short sale if you still have trouble selling. This is a final resort for homeowners who need to get out of their house quickly but are not in a place to foreclose.
A short sale occurs when the homeowner sells their property for less than the amount still left on their mortgage. For example, if the remaining amount of the mortgage is $150,000 and the house sells for $135,000, the homeowner conducted a short sale. This option is less harmful to your credit than a foreclosure, and you will not receive profit from the purchase.
How to Speed Up a Home Sale
When it comes to a declining housing market, know that you have options. Talk to your family and a realtor about your options and the best way to proceed. It may seem discouraging to watch buyers' interests dwindle, but there are various ways to profit off your home.
Comments(1)