Five Ways to Sell a House in a Down Market
There are numerous reasons why you might want to sell your home even if the time is not right. Perhaps you are relocating for professional or personal reasons or perhaps you can no longer afford the upkeep on the home. Whatever your reason, at first glance, the process of selling your home in a down market might seem hopeless. However, if you employ a few methods, you might find success in this real estate process.
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Lease Option
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A lease option gives consumers another way to purchase a home. The process is as such: the home buyers put a down payment down on the home as if they were buying it and then sign a lease for one to two years while locking in the home price at what it is when they put down the down payment. Then, once the lease period has passed, the home buyers take the necessary steps to purchase the home.
Reduced Price
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If you are desperate to move your house, then you might consider a pretty steep price cut. In a down market, when real estate simply isn't moving as quickly, a steep price cut is a good way to attract attention to your home from people that might not otherwise give it a second look. If the idea of unloading the home matters more to you than what you get for it, slash the price by 10 percent and see what happens.
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Short Sale
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If you need to unload your house in a down market because you are in danger of losing it, then inquire as to whether your bank will allow you to do a short sale. In a short sale, you sell the house for less than what you owe on it in an effort to get out of the contract. The bank may be willing to take the hit in order to get a new homeowner in to continue making payments, rather than take the total loss in foreclosure.
Investment Property
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Market your home to potential investors who may not necessarily buy it to live in, but instead to flip it or rent it out. In a down market, you may have to work a little harder to seek out investment buyers, advertising the home on websites that cater to investors and listing the home with a real estate agent who specializes in showing investment property.
Seller Financing
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Offer owner financing on your home to get it moving in a down market. In tough real estate markets, it can be extra hard for potential buyers to get financing for a home. Instead, you can essentially be the lender for the home, extending financing through having the buyer make payments on the existing mortgage through a promissory note signed between you and the buyer. However, your lender must agree, and these deals generally only last until the buyer is able to obtain independent financing.
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References
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