The likely reason you’re here is you have a pressing issue and needing to sell your house fast. My multiple-offer strategy is proven to be the solution to many of life’s problems. In my 20+ years of buying, fixing, leasing & selling properties, the problems vary. Here are the most common issues people experience when they call me.
The categories consisted of the following:
- Job Loss, Job Transfer, Loss of Income.
- Relationship Breakdown, Divorce, Separation.
- Health Issue, Physical Inability, Death.
Number 1 is a bit obvious, but the fact remains, financial difficulty or hardship (temporary or not) can drastically alter our lives. In the last 12 months, Job Opportunities are the primary seller motivation for wanting to sell a house quickly.
Divorce or “Partner” Separation is number 2.
This is a distant second place to Job Loss/Transfer. Divorce will just always happen. It almost becomes a catalyst for an income change. Typically one of the two people separating, will stay in the property. That person who stays frequently faces a financial challenge.
Death, probate and illness are climbing the list of reasons home sellers’ motivation to sell. Baby Boomers are turning 70 plus and face mounting health challenges and issues. With age comes the natural difficulty to maintain a home. Home upkeep becomes expensive and problematic for our aging population. As a result, they’re forced to spend savings to pay the increasingly high costs of property preservation and home repairs. The alternative is, they simply neglect their homes which fall into a dilapidated condition.
Any of the 3 primary reasons for needing to sell a house fast, are facts of life. Some plan, most just don’t. When you see someone go through a health issue, death, divorce, etc. it makes you take a Hard Look in the mirror. Life can be tough. In tough situations, we are forced to either face it as best we can or jump ship.
The best was to get your property sold rapidly, is to a cash buyer.
The benefits of a cash buyer is that there are no “bank contingencies” or red tape with approvals, committee sign-offs, manager reviews, appraisals, underwriting, inspections, you name it! There are far too many loose ends that can fall out of place to make the deal fall apart.
A cash buyer doesn’t actually bring cash to the closing transaction. They have money in their bank or account somewhere. Either a wire transfer is sent to the closing agent or attorney’s account to “fund the deal”. No bank approvals, appraisals, inspections, reviews, etc. None! The downside to a fast cash offer type buyer, is that they generally want a certain Return on Investment (ROI) on their invested capital. This means they would have to buy your house at a discount.
The amount of the discount can absolutely vary per property, situation, and investor criteria.
Ok, back to how to Sell My House Fast…
There is a formula most real estate investor buyers use in situations like this. They will not be happy with me for divulging this to you, but I believe in full transparency of how real estate investors work.
Ok, here it is:
ARV X 70% – REPAIRS = MAO
Clear as a bell huh? lol Ok, allow me to explain further.
ARV = After Repaired Value. The ARV is determined by researching Comparable Sales. Comparable Sales are homes of similar build, size, quality of finish, land size and location that have SOLD in the past 1 to 6 months.
The 70% is self-explainable. I will elaborate a bit so you understand. A 30% gross margin in any property deal allows for unforeseen expenses.
Is any of this helpful to you so far? I’m happy to chat to explain the entire process so you have the information you need.
REPAIRS are just that. Repairs needed in the home to bring it up to Excellent Condition.
This brings us to MAO. MAO stands for Maximum Allowable Offer. Investors stick to (or very close to) their formulas and policies of buying houses with cash. You may disagree with the Value of your house in tip-top shape, but generally property appraisers are using a very similar structure to provide the value of any property.
That leads us to Repairs. This can be an open-ended variant to what an investor to be able to offer more, or possibly less than you might expect. You might be thinking “I can repair the house for WAY cheaper than you’re estimating!”. The investor might say, “Fine, do it then and let me know how it turns out for you.”. There’s a reason you’re reaching out to a cash investor/buyer and that’s ok.
Over 34% of all real estate transactions (in the Single Family category) are paid for with Cash.
I’ll now cover the Two primary strategies investor buyers like me use to help a homeowner realize their goal: Sell My House Fast
- Cash. (this was explained above)
- Terms. (say what?…I’ll explain below)
Selling your house on “Terms” just means you are selling it on “terms” you agree to, usually by accepting payments as part of an agreement to get it sold. As a result of “terms”, close to 80% of Businesses are sold this way and over 20% of single-family homes are as well. Perhaps your “terms” are that you only accept Full Asking price, no ‘financing contingencies’ and all cash. You may not get it, or you’ll have to wait much longer than the time you have, but that’s 100% your choice.
Terms can be dictated by you or proposed by the buyer and can be custom-suited to meet your goal.
If your primary goal in selling your home quickly is to allow you to move out of the area, a “Terms” type sale can work quite well for all involved.
A typical Terms deal, involves negotiating the terms to wrap around the existing financing. Doing this appeases buyer, seller and the existing loan agreement you signed when you bought the house. I read the mortgage of most major lenders. As a result of this, I know most allow you to sell on ‘terms’ after you live in the home 12 months or longer. This is very useful information for home sellers. It’s those hidden (or seemingly hidden) issues that can pop up.
I’ve learned those over my 20 year career doing this.
If, by chance, you buy a house, live there for 8 months and you need to sell it fast so you can take that new job in Minnesota, you can absolutely sell it on Terms. In this case I would seek written approval from your lender to sell it. They always allow it, because they just want their monthly payments, simple.
Thank you for stopping here and reading my blog post on selling a house fast, I truly hope it was helpful.
If you have any questions about selling your house, please reach me. I’m genuinely happy to be helpful and to serve the community.
~Jay 515.809.2274 Jay(at)FastFairHomeOffers.com