Today, it is becoming increasingly common for many sellers to find their homes languishing on the market for many months. In fact, most sellers are discovering it is taking far longer than they ever thought possible to sell their home. This is becoming the reality for sellers despite spending a small fortune on advertising and even slashing the sales price of their home. As a result homeowners are frequently considering other alternatives when their home simply will not sell in the current market.
Waiting to Sell. One option well worth considering is to simply postpone selling your home. It very well could be that now is not the right time for your home to sell. There is no question that right now it is a buyer's market. There is far more inventory on the market now than in the last several years and buyers have the advantage of being able to not only take their time while they look for the right home but also to negotiate price and terms as well. By waiting, you may find that later could be a better time to try to sell your home. This is especially true during certain times of the year, such as during the holidays. Overall, most owners usually have better luck when they try to sell their home during the spring.
Renting out your Home. In some cases, it may be imperative that you move immediately; especially for employment reasons. If that is the case, you may not be able to wait until your home sells. Renting out your home could provide you with some income during the interim. Even if you are not able to receive exactly enough in rental proceeds to cover the amount of your mortgage payment, it still may be enough to help ease some of your cash flow.
If you do choose to rent your property make sure you screen tenants carefully. A real estate management company can assist you with this task. You may even wish to hire the same company to manage the day to day details of the rental. This can be particularly beneficial if you will no longer be living in the area.
The Advantages of a Short Sale. A short sale can be advantageous for individuals who have purchased their home within the last few years. In many cases such as this, owners frequently owe more than their home is actually worth in the current market. Real estate agents and attorneys who specialize in short sales are sometimes able to work with the owner's lender to reach a negotiation. This type of negotiation usually involves reaching an agreement with the lender to accept less than the balance of the mortgage. You should keep in mind when considering a short sale the effects this could have regarding your credit. In some cases this could result in a pre-foreclosure on your financial record. In addition, it is not unusual for many homeowners to owe taxes on a short sale to the IRS, however, recent federal regulations have gone into effect that address this issue. Consult with your CPA, attorney or the IRS for more current details.
Using a Lease Option for your Home. You might also want to consider offering your home on a lease option. This is completely different from offering it for an outright sale. Many buyers find lease options to be quite attractive, especially if they are not able to purchase a house using conventional financing for some reason. With a lease option, the tenant gains the chance to purchase the home later at a price that is predetermined. In addition, if the tenant cannot quite decide if they are ready to buy yet, this gives them an opportunity to actually live in the home before making a decision regarding whether they wish to buy it. The sellers also receive advantages as lease option payments are typically higher than rent payments. For sellers who have experienced a negative cash flow, this can be a relief. In addition, tenants who are living in the home with a lease option rather than simply renting it may take better care of the home.
Guaranteed Purchase Programs. If you need to sell your home due to relocating for employment reasons, it is a good idea to check with your employer regarding relocation programs that guarantee a purchase of your home. This type of program is certainly worth checking into. Many people are not even aware that their employers offer such programs. They can certainly be beneficial if you must move within a certain time frame and your home has not yet sold.
If these options don't work for you and you still need to sell your home you may want to consider sweetening your home sale with things like free lawn or pool service for a year, including the furniture, using a professional decorator or stager, or offering a seller subsidy if the buyer has some concerns about any updates that will need to be done.
If you would like to learn more about decorating or staging your house, call us at (813) 968-1414 or Send us an Email.
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