If you need your property to SELL FAST for whatever reason, or get out of your monthly mortgage payments; there are many conventional and unconventional options available for you. Although these options are able to help many sellers in a wide variety of situations, no one solution is perfect – they all have their positive and negative features. It is highly recommended that you are aware of them and seek outside professional assistance when deciding which route is best for you and your family.

Below is a brief overview of ALL conventional and unconventional options that are available to those who need to sell fast – not just the ones that the average real estate agent knows about. For more information on any of the programs below contact us; check out the supplemental articles to the right or contact your local real estate professional.

1. Conventional Sale

Putting your home for sale on the market is by far the most common solution for owners looking to sell their property fast. The seller can either do this on his own or hire a local real estate agent to assist him in the transaction. Whichever route he chooses to take, the owner is looking for someone with cash or approved for a mortgage loan to purchase his property for a certain price. In a good housing market, the home should sell within an acceptable amount of time in which the seller is able to walk away from the home while retaining most of his equity in cash. However, in a down market, houses can sit for months, declining property values can eat away at the seller’s equity and real estate commissions, and closing costs as well as other expenses can make selling a home pricey.

Here is an example to demonstrate the true cost of selling your home. The figures below are estimates based on a home that is listed for $100,000.

Sales Price Discount at 3% of the list price:
$3000
Realtor Commissions at 6% of the list price:
$6,000
Closing Costs at 2.25% of the list price:
$2250
Monthly Payments while the home is being marketed (Average time on market is about 90 days):
$2250 ($750 x 3 months)
Repairs requested by the buyer after a home inspection:
$1000
Adding up the numbers above, the total cost to sell is about $14,500. So, with a list price of $100,000 the seller can expect to net $85,500. If your loan to the mortgage company is more than what you expect to net, then you probably need to look for another option for your home to sell fast.

2. Investor Purchase

This is another conventional sale where an investor will come and make a cash offer for your home – many times in its current condition. Many homeowners think this is the best way to sell their home fast and solve their problems. This is rarely the case. The vast majority of investors follow a formula where they purchase homes at 65% of current market value minus any repairs that may be needed.

For instance, a home valued at $100,000 that needs $5000 in repairs. An investor will offer 65% of $100,000 – $5000 or $60,000. If you or your bank is going to need more than that, then you will need another option for your home to sell fast.

3. Renting Your Home

In a down economy or if you cannot sell fast, many people may choose to rent out their home until the market recovers and they can sell. This way, you are able to keep your home and find another residence while your monthly mortgage payments are covered. Keep in mind, renting takes time and can be expensive and demanding. You may have to pay an agent commission to help rent your home, cover any repairs needed to the property, and locate a property management company (usually a charge of 10% of the rent amount). If you would like more information on renting your home please contact us.

4. Short Sales

Short sales are technically not a way for homeowners to sell fast, but can be a real solution. Essentially, the bank agrees to accept an amount less than what the seller owes for the home. If a homeowner owes the bank $95,000, but the current market value of their home is only $85,000, the bank might allow the person to sell the home and pardon the remaining $10,000.

For sellers in a down real estate market trying to avoid foreclosure, short sales can be a resolution, yet carry significant consequences. Short sales take on average of 6 to 9 months to complete and have no guarantees of being successful. Also, in most cases the seller’s credit will be severely damaged enabling them to purchase another home through conventional methods for 2 to 7 yrs. Click here for our article explaining Short Sales in more detail.

5. Loan Modification

A loan modification is not considered a sale and is not a way for property owners to sell fast. However, this is a great conventional method that can give a seller relief from his monthly mortgage responsibility. If you are having trouble making your mortgage payments, many times the bank will drop your interest rate, move delinquent payments to the back of the loan, or use other methods to help you catch up and for the future. For home owners that have had recent financial difficulty or overwhelming mortgage payments due to high or increasing interest rates, a loan modification can help save a home from foreclosure and get the seller back on track. However, sometimes the banks may not allow a seller to modify his loan. In most cases, modifying your loan is a temporary solution to a bigger problem that will have many owners still looking to sell fast. For more information, click here to view our article explaining the loan modification process in more detail.

In many cases, the conventional options above can be extremely helpful; however, there are many home owners in unique situations who still need to sell fast. The unconventional options below can be helpful and applicable solutions because the buyer and seller are able to remove the bank from the process and work with one another directly.

8. Owner Finance

Owner financing is when the seller of a home agrees to lend all or part of the purchase price to the buyer. Whether there is an existing mortgage on the property or not, the owner is able to sell his home and the buyer is able to buy without having to go through a bank. Owner financing not only allows the homeowner to sell fast, it also allows him to save his credit, money, and equity. For more information contact us or click here for our article explaining owner financing in more detail.

9. Rent to Own and Lease Purchase

A Rent to own or lease purchase sale is a type of owner finance transaction that combines the basic elements of a rental agreement with an exclusive option to purchase the property at a later date. This is a cheaper option allowing a seller to rent out his property to a future buyer with less stress and responsibility. Many times, this method is the fastest way for a property to sell. For more information contact us or click here for our article explaining rent to own and lease purchase sales in more detail.

10. Mortgage Assignment

A mortgage assignment is when a seller transfers title to a buyer in exchange for the buyer to take over or “assume” the monthly payments. There are qualifying and non-qualifying assignments (meaning bank approved or non-bank approved) transactions, with non-qualifying assignments being the most common today. More often, the buyer is an investor that will agree to come in and start making mortgage payments on your behalf. For the seller that needs to sell fast, is not interested in making money on his home, would like to preserve his credit, and would like to just walk away from the property with the smallest amount of responsibility, a mortgage assignment is probably his best bet. Please contact us if you would like to receive more information about mortgage assignments and possibly having someone take over your monthly payments.

THIS INFORMATION ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD BE CONSTRUED AS SUCH. SHOULD YOU HAVE ANY QUESTIONS CONCERNING AN OWNER FINANCE TRANSACTION, ASSOCIATED RISKS, BENEFITS, OR OPTIONS ON HOW TO PROTECT YOURSELF, SEEK COMPETENT LEGAL ADVISE FROM AN ATTORNEY OF YOUR CHOICE.

By Karlos Knox