Many people sell real estate at some point in their lives and often more than once. Even though it is common to sell real estate few people are educated sellers. I have sold real estate many times and learn from each sale. I hope some of the things I have learned, which I will share, will help you with your sale.
The most common form of selling real estate is trying to get a cash sale. This is where you will receive the entire amount of money for your real estate at the closing. This is probably the ideal way for most sellers. At times this may not be an option. For instance if the value of your property has gone down or for any reason you are unable to sell your property for the price that you need to get. There are other great options available such as selling via land contract.
My favorite way to sell a house is via land contracts. You may have heard of land contracts being called “seller financing” or “rent to own” or something along those lines as well. If you need the full amount up front this is not an option for you. If you are able to take a down payment and finance the house for your buyer you will usually end up making a lot more money in the long run. Many times you are able to sell your real estate for a higher price and you will also be able to earn interest on the money that is owed to you. If you sell via land contract many times the taxes, insurance and repairs will all be the responsibility of the buyer. You will also have the house as well as any money that has been paid as security incase the buyer breaches the land contract for any reason. If you are still unable to sell your real estate for your desired amount you may want to try a third option of renting.
Like most markets the real estate market has its ups and downs. If you get caught, like so many people around 2009, where you need to get more money out of your house than it is worth at the movement you may need to consider renting it out. Renting isn’t hard and the more you do it the easier it gets. If you have problems starting off lawyers, realtors and property management businesses will be glad to assist you with any of your needs. If you are able to rent your home for a while you may be able to hold off taking a loss on the property. Renting allows you to hold your property and wait for the market to go back up and hopefully even make some money on it in the mean time. Even if you break even at the end of the year you will probably still come out ahead. If you have tenants paying your mortgage it may not seem like you’re making any money but some of that money is actually going toward your principle. Also, renting has tax benefits that may be overlooked and you may want to talk to an accountant for some more helpful advice with that.
As you look to sell your home remember that there are more than one option. The beauty of real estate is that you have so many options to be able to make it work for you. Don’t limit yourself or automatically take less than you hope for. If you are creative and do your due diligence you will be a lot better off in the long run.