Before You Sell Your House Fast in Fargo…
Maybe you typed in “sell house fast,” on Google. Now you’re looking for options. Or maybe you’re just looking for tips on getting rid of your property as soon as possible.
We get it. According to government census data, over 20% of renters are behind on their payments — sometimes up to $5k. It makes sense that some people might be behind on their mortgage. If you’re a landlord with multiple properties full of tenants who can’t pay their bills, you might be suffering, as well.
Before you sell your house to the first buyer you find on the internet, read this to stay informed and review what options you still have. If you’ve just recently received a notice of default, for example, you don’t want to make any rash decisions.
Who Buys Homes Like That?
First off, what type of person buys homes fast? You’ve probably seen those signs, taped to telephone poles as you pull off the highway, that say things like “I buy ugly houses!” or “Sell Property As-Is. Offer in 24 hours!”
Why? Who is buying ugly houses?
There are a few different groups of people who buy distressed properties (which are properties in need of fixing up).
Cash Buyers / Investors
Cash buyers, true to their name, offer 100% cash for the property. This can be enticing to a lot of people, because they don’t have to deal with traditional lenders. They don’t have to worry about whether or not the loans are VA, FHA, or conventional. Since the buyer has the cash, they cut out the bank entirely.
According to the National Association of Realtors, cash buyers make up 33% of all home sales in the United States. This is especially interesting because there are actually fewer opportunities to buy distressed properties.
Similar to cash buyers, there are typical investors who use traditional financing to secure properties. Their goals are the same as cash buyers, except they aren’t paying in cash — which doesn’t make much of a difference to a lot of sellers.
Fix and Flippers
You’ve probably seen a lot of TV shows featuring fix and flippers. These people buy distressed properties in hopes of fixing them up and selling them for a profit (or, at the very least, breaking even).
Regardless of who buys the house, whether they’re a cash buyer, typical investor, or a fix and flipper (or a combination of all three), the motive is the same as in any business transaction: make a profit.
Pros and Cons to Selling Your Home Fast
So, with that said, it pays to know where you stand. In order to negotiate effectively, you need to know your options.
When does it make sense to sell your house fast and when should you take a different route?
Pros to Selling House Fast in Fargo, ND
Low Interest Rates Means More Demand (More Money for You)
Every real estate expert is recommending the same thing to prospective buyers: now is the time. Interest rates are at decade-lows. Buying a house now can potentially save you tens of thousands of dollars on your mortgage.
What does that mean for people looking to sell their homes? It’s simple supply and demand: there are a lot of buyers flooding the market because of favorable financing, but there’s still a limited supply of homes.
As a result, home prices have gone up roughly 8% over the past year, and they’re expected to grow another 10%.
Since the beginning of the pandemic, Fargo home values have increased by about $10k.
You Can Avoid the Headache Before the Inevitable Market Crash
We don’t have a crystal ball, and we’re not making any precise market predictions other than this: What goes up must come down.
The housing market regularly booms and busts every few years. Even before the record unemployment caused by the pandemic, some experts were calling for a market correction in both stock market prices and housing.
If you’ve been looking to sell your house for a long time, now might be a good time to get out.
Cons to Selling House Fast in Fargo, ND
Keeping the House on the Market Longer Might Mean More Money
Two Stanford economists looked at how much value realtors add to the real estate transaction process. On average, realtors take a 3-6% cut for selling your home. In order to offset their costs, then, you’d expect a realtor to add at least 4-7% of value to the sales price (or else there wouldn’t be any reason to use a realtor).
They concluded: “We find no evidence that the use of a broker leads to higher average selling prices, or that it significantly alters average initial asking prices.”
That means that selling your house yourself typically won’t reduce the home’s value, no matter how badly realtors want you to believe otherwise.
With that said, however, if you’re looking to sell your house in a matter of 24 hours, most investors are going to take advantage of that situation and lower their initial bid. When it appears that you don’t have time on your side, you lose bargaining power. Keep that in mind when negotiating for a price.
Marketing the Property Well Usually Results in More Money
Similar to the point we made above, if you market your property with open houses and professional photos, you’re almost guaranteed to make more money than you would with a fast buyer.
The problem, though, is that you might need to make significant improvements to the property in order to sell it in that manner. Sometimes you don’t have the money (or time or interest) to do this.
Don’t Let Buyers Intimidate You or Take Advantage of You
Some buyers are very pushy about their sales tactics. At Autopilot Properties, we want to make sure that you’re making the best decision for you. We know that, one way or another, we’ll eventually win over your business. Whether that means we’re going to buy your house right now or you’re going to recommend us to friends for giving you great investment advice, we want to help make Fargo a better place to live in. That’s why we buy and fix up distressed properties in the first place.
Unfortunately, many buyers don’t really follow the same code. Some might even lie to you or pressure you into a sale that you aren’t ready to make. Don’t let this happen. Make sure you stay informed and review your options.
Conclusion: Before You Sell Your House in Fargo, ND
With interest rates at decade-lows, now might be a great time to sell your home.
But does that mean you should sell your house to one of those companies who buys houses fast? It depends on your situation. There are advantages and disadvantages for every option, but generally you’ll make more money if you keep your property on the market longer and market it well.
However, if your property is significantly damaged, you might not have the money (or know-how) to make the necessary repairs. And, in the time that you are making those repairs, the housing market could take a nosedive. That means no buyers at all, for at least a few years until the market gets back on its feet.
With that said, there’s no saying what will happen with the real estate market. It could keep climbing for the near future, so it’s a decision you’ll have to make.
If you have any questions or you want to explore your options (or you want to get a quote on how much your house is worth), feel free to reach out.