Do you want to sell your home in Kansas City? If so, we want to share some possible alternatives to a listing. Many people aren’t aware of the options that are often available! Check out our latest post to learn more about what is available for you!
Selling a house can be an overwhelming and intimidating process. In many ways buying a house is a much easier emotional experience than selling a property that you already own. Between managing and paying for repairs, negotiating with agents and buyers, cleaning the home, moving all of your stuff and more, the stressors can really add up!
There are alternatives to a listing that can work much more efficiently in some situations. Consider some of these alternatives to listing when you are ready to sell your Kansas City house!
Rent To Own
Offering to sell your home on a rent-to-own structure opens up the buyer pool to a whole new set of potential buyers. You can often sell your home for the full asking price or even a little more. These individuals may be great homeowners, but have a little blemish on their credit, not quite enough down payment, or another mortgage currently that prevents them from qualifying for a traditional mortgage.
These are great people, who will be likely to pay a higher than average rent in exchange for the chance at home ownership. To get started, the buyer will pay you an agreed upon “lump-sum payment up-front. This acts as a deposit should they fail to hold up their end of the deal. The buyer will also pay you a higher than average rent, with a portion of the rent going toward their down-payment.
At the end of the year or two, the buyer must buy the home or forfeit their deposit. This type of sale can be structured very creatively so be sure to select terms that you will be happy and feel comfortable with! We are experts in this strategy and can help guide you through the process and paperwork as well.
Hold As a Rental Property
Have you ever pictured yourself as a landlord? In some situations, it can be a lot of work. While other times, and with careful screening, you can find great, low-maintenance tenants. Many people who aren’t able to sell the traditional way, will instead opt to rent their home out.
If it seems like too much work, you can always hire a property management company to help you with routine maintenance and rent collection. Many people find owning a rental property is an excellent way to secure extra income.
Selling to A Direct Buyer or Investor
When you choose to sell your home directly, you will likely save many out of pocket costs you encounter when listing. You won’t need to pay a listing agent, make repairs or clean up. Selling directly to an investor is often much quicker close as well which saves you time, money and stress. Because they are often buying in all cash, you don’t have to worry about the deal falling through for lending issues as well.
When you sell your house directly, make sure to read the fine print and that the terms are agreeable to you. When selling on your own, you will not have a professional to help guide you. Not all home buyers are the same!
Access Money from Your Property with a Home Equity Line of Credit
If you are simply needing some extra cash for any reason and have some equity in your property, consider setting up a home equity line of credit. You can take loans up to 100% of the value of your property. For example, if you own a home worth $100,000 and have a mortgage balance of $50,000 you can take a loan out for $50,000. When you go to use this money you can use it same as cash. Lenders will allow you to draw the money directly into your checking account, or through the use of a HELOC debit card. You can use this money for anything you wish. The main drawback of this loan is that there is an interest rate on the loan. This is typically slightly higher than a mortgage rate.
You do need to have some equity in your property and have a decent credit score to get approved. Additionally, most home equity loans are only done on your primary residence and not on investment or second homes.
Here is a great article from Money.com about the best home equity loans.
Many people are turning to auction services to sell their [marlet_city] homes. Choose a site or person who will generate buzz about your property using excellent marketing. The goal here is to draw attention to your home and encourage buyers to outbid one another.
An auction is great for people who want to want to sell and have a definitive date. By selling quickly, you can potentially save thousands as opposed to listing your home.
Factor in your mortgage payment, homeowners insurance, property taxes, repairs and general depreciation, and you’ll see that holding on to a home, that isn’t income generating, is only costing you money.