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Author: Hometown Development

Understanding the Costs of Selling a House in Michigan

Posted on by Hometown Development

It’s surprising to many, but selling a Michigan house or property actually does cost some money. From Realtor fees to staging fees to paying your mortgage while waiting for closing, not to mention any repair costs, there’s a lot of money you can end up putting into the sale of your house. Let’s take a look at the costs of selling a house you can expect — as well as some ways to save money during this process.

The Costs of Selling a House

Selling a Michigan house can get expensive fast. Some costs of selling a house you can expect — like making repairs or working with a Realtor — but other expenses, like closing costs and attorney fees, can also reduce your profits from a home sale. Some of the costs of selling a house include:

Home Repairs and Other Costs of Selling a House

If your home or property needs a bit of work before it’s ready to list on the market, one of the biggest costs of selling a house is repairs. Repairs could include serious expenses like replacing the roof or fixing a cracked foundation, or be a collection of smaller, cosmetic costs like painting the interior a neutral color or revitalizing your home’s landscaping. Also, if your house is showing its age, you might need to update rooms and appliances to make it more appealing to potential buyers.

Remember that you’ll need to continue paying regular maintenance costs and your mortgage during this process — all the way up until the home changes hands. The more work and time your home needs to be ready to sell, the more money you’ll end up paying.

Realtor and Attorney Fees

In order to help sell your home, you may consider working with a Realtor — but you’ll need to be aware that they come with their own costs as well. A Realtor can help you determine what needs to be fixed or changed before selling your house, and help get the word out about your home sale to reach more potential buyers. However, they may require you to pay for professional staging or photography to list the home and, on top of that, they will earn a percentage of the sale (usually 6 percent) once a buyer is found.

Closing Costs of Selling Your Michigan House

Closing costs are extra fees and expenses that the seller is responsible for paying throughout the closing process. Typical closing costs can amount to 6-10% of the sale price of the home and include:

  • Title insurance
  • Property transfer taxes
  • Any outstanding liens
  • Recording fees
  • Holding costs
  • Repairs required after the home inspection

Timeline of Selling a House

You won’t just be spending money to sell a house or property, another important cost to consider is time. Preparing your home for sale, listing it on the real estate market, finding the right buyer, and going through the closing process can take time — especially if your home needs repairs, is outdated, or the buyer needs time to secure financing. 

Selling a house can take several months. If you need to pay to maintain the house and property during this time, your costs can multiply until the sale finally goes through. If you’d prefer to sell your house fast, you may need to look at an alternative way that helps you avoid the costs of selling a house.

Avoiding the Costs of Selling Your Michigan House

If you want to spend as little as possible and minimize the costs of selling a house, you can sell your home without making costly repairs in an as-is sale, sell your house yourself to avoid Realtors’ fees, or sell to a real estate investor in a fast, cash sale.

Sell Your House As-Is for Cash

One way to save on the costs of selling a house is to sell your home as-is. That means you don’t need to worry about making repairs, cosmetic changes, or updates to your home. You list it for sale in its current condition and get to save the money you would have spent on expensive fixes. In order to sell your home as-is you may need to price it competitively or be patient for the right buyer to find you. 

Alternatively, you could prioritize the repairs your home needs, and leave the extra fixes for the next homeowner to worry about.

Sell Your House Yourself

If you sell your house yourself, you can avoid paying Realtor fees and save money in your home sale. A benefit of selling your home by owner is that you can decide how much work you want to do to prepare it for sale. If you decide to sell this way, understand that selling your home may take longer and you’ll have to do the work yourself when it comes to listing your home, facilitating showings, and negotiating with potential buyers.

Sell Your Michigan House to a Real Estate Investor

Finally, a great way to sell your house without spending extra money on repairs, Realtors, or closing costs, is to sell your home to a real estate investor. Real estate investors prefer to purchase homes: 

  • In as-is condition — meaning no expensive repairs necessary
  • Without a Realtor — no commissions to pay
  • On a quick timeline — often in as few as 5 days

If you want to save on the costs of selling a house and sell your house fast for cash, selling to a real estate investor will be the ideal solution for you.

Selling your home traditionally can end up costing quite a bit. If you’re ready to move on, without the hassle of a realtor and closing costs, talk to Hometown Development. We prefer to close in as few as five days, and we handle all of the closing costs.

How to Manage a Rental Property Long-Distance

Posted on by Hometown Development

Managing a rental property is a lot of work. As one of the most active types of investments, owning and maintaining your own income property involves a variety of tasks, including landscaping and cleaning the property, repairing problems, finding and keeping good tenants, upgrading units, collecting rent (or tracking it down if it’s not paid on time), and generally being available for tenants, contractors, and others to reach you.

— and if you are trying to figure out how to manage a rental property long-distance, or commuting back and forth, all of these tasks become even more difficult. 

How to Manage a Rental Property Long-Distance

If you’re struggling with being a long-distance landlord, you have options. You can try to make the experience easier by hiring a go-between — a management company or a reliable tenant — or you can sell the property and search for a more passive real estate investment.

Work With a Local Management Company

One way to balance how to manage a rental property from a distance is to contract out some recurring services like landscape maintenance and cleaning services, and repairs, or transfer all regular responsibilities to a management company local to the area. Management companies can handle all of the tasks you would normally manage and then pass the profits off to you — after taking out their fee, of course.

The obvious drawback is that the more services you hire, the less profit you’ll see returned. If you own a small investment property with few tenants, it might not be worth it to outsource all the labor.

Hire a Reliable Tenant

Another option is to rely on a tenant to manage your property while you’re at a distance. This works best if you only have a few tenants and they all get along well. The right tenant for this job has the time to help maintain the property and can be available to other tenants to make repairs or address requests, deal with rent issues, and answer general questions. They will also have the right people skills to listen to tenants concerns and keep you informed of any developments or problems.

The downside with this option is that your tenant may not be as dedicated to real estate management as a landlord. Sure, the bonus of decreased rent or a steady additional income may be attractive to most tenants, but they have their own life, and managing real estate might not be their long-term goal. Unless you find the ideal tenant whose highest aspiration is to maintain your property for a reasonable fee, this will be a short term solution, at best.

Also, the more tenants you have, the more difficult it is to put the responsibility on the shoulders of one person to make administrative decisions.

Even if these options help you figure out how to deal with day-to-day tasks and manage a rental property long-distance, you may still be required to commute back and forth every time there’s an issue your management company or tenant can’t handle. 

How to Sell a Rental Property Long-Distance

If managing a rental property long-distance just isn’t feasible for you anymore, it’s time to consider other options: Sell the rental property to a real estate investor and look for a more manageable property that’s local to you. Or, find a passive real estate investment and enjoy reliable long-term returns without the added effort or commute.

Sell Your Rental Property to a Real Estate Investor

Real estate investors make the ideal buyers for rental properties like yours because they are actively looking for turnkey investments. They have time, capital, and experience, and know how to manage a rental property effectively. When you sell to a real estate investor, you don’t have to waste time and money preparing the property for sale, hire a specialized Realtor, or wait for just the right buyer. Real estate investors will purchase your property in its current condition, offering you a fair cash offer for its real market value. 

They also prefer to move quickly through the sale process, so you can sell according to your timeline. If you want to get your rental property off your hands and off your mind, selling to a real estate investor is the fastest and most convenient way to accomplish that.

Find Passive Real Estate Investments

There are many types of real estate investment that don’t involve buying and selling property. Investing in a development or a real estate investment firm, for example, means you can still participate in the lucrative real estate market without doing the work of flipping homes or managing tenants. Once you’ve sold your rental property, you can begin your search for other appealing real estate investment opportunities that suit your risk level and time commitment.

Tired of managing your rental property long distance? Hometown Development can help. We purchase properties in as-is condition and can help you sell your rental property fast and hassle-free. Talk to our team for more information.

Can You Sell a House with Property Taxes Owed?

Posted on by Hometown Development

Yes, but the process is more complicated than a traditional sale, and requires that you as the seller address the delinquent taxes before the sale can close — either by paying off the owed taxes beforehand, or using the proceeds of the sale to fulfill the debt requirements. However, if the sale doesn’t cover both your mortgage and the owed taxes, things can get more complicated. 

The important thing is that you have options, and if you need to sell a house with property taxes owed, this guide will help you through them.

What Happens When You Owe Property Taxes?

Property taxes are typically paid twice a year, usually once the winter and again in the summer. When you sell your home, you pay any taxes owed at the time of closing. If this date falls between the winter and summer taxes, the amount is prorated to the close date. This gives the buyer a clean slate when they purchase the property. 

If you have delinquent property taxes, to the point where the county or city has placed a lien, which is a claim against your property, you must address the owed taxes before the sale can close. You can use the proceeds of your home sale in order to pay the taxes, but the process becomes more complicated if you can’t pay the tax and your mortgage with what you earn in the sale. 

Can You Sell a House With Property Taxes Owed?

If you want to sell a house with property taxes owed, you can either pay back the tax before the sale or sell and use the home sale to pay the debt.

Pay Back the Taxes Quickly

If you have the funds in your savings or can liquidate the funds needed to pay the owed tax and have the lien removed, you should do so. The longer you wait to pay back the tax, the more interest it accrues, putting you in further debt. Once you’ve paid back the owed taxes, you can ask to have the lien removed from your home’s title.

The sooner you can pay back the taxes owed on your property, the better off you will be. If you can’t settle the debt before you sell a house with property taxes owed, you may still be able to go forward with a sale and move on from your home debt-free.

How to Sell a House With Property Taxes Owed

If you need to sell your home to pay back property taxes owed you may be able to use the home sale to fulfill your debt obligations. Otherwise you may need to obtain a lien release or find the ideal buyer for your home: a real estate investor.

Pay Owed Taxes Using Home Sale Proceeds

The most common way to sell a house with property taxes owed is to pay back the taxes using the proceeds of the home sale. At the time of closing, the sale of the home will go toward the mortgage and then the lien. A closing attorney will supervise the transfer of funds to ensure that the delinquent taxes are paid in full. Any remaining balance, after closing costs and Realtors’ fees will go to the seller.

For example, if you sell your home for $200,000, a large portion of that will go towards the mortgage balance of $150,000. If you have a tax lien of $15,000 on your home, your closing attorney can arrange to have that amount taken out of your sale proceeds at closing, which will leave you with $35,000 (before closing costs and fees).

If the proceeds of your sale do not cover the mortgage and owed taxes, you’ll be responsible for bringing the rest of the owed balance to closing to satisfy the lien — or the sale cannot close. If you aren’t sure that you can sell your home for a price to meet all financial obligations, you may want to seek another route before you sell a house with property taxes owed.

Obtain a Lien Release to Pay After Closing

In some situations, the taxing agency may grant a lien release called a “certificate of discharge”. This certificate does not forgive the debt or extend your repayment indefinitely. What it can do is allow the lien to be released from the title of the property and transferred to you. You must still repay the owed taxes, but you’ll be able to sell your house and pay back the debt after the sale.

The disadvantage of this method is that it can take time, extending the closing of the sale and increasing the chance the buyer walks away. 

Most average home buyers will not be interested in a home with a lien and back taxes owed. They don’t want to be responsible for paying extra taxes, and the closing process can take a long time if they have to wait for you to obtain a lien release for the sale to go through. If you want to find a buyer to sell a house with property taxes owed, you need to find the ideal buyer for your situation: a real estate investor.

Sell to a Real Estate Investor

The best way to sell a house with property taxes owed is to sell to a real estate investor. A real estate investor has the time and capital to help you out of a tough situation, and won’t run for the hills if they see a lien on your title. They have the expertise in real estate to give you sound advice and can help you find the best solution for your situation. 

When you sell your home to a real estate investor, you can complete the sale on your timeline. You also won’t have to worry about making any costly repairs or changes to your home, hiring a Realtor, or waiting around while they secure financing. Many real estate investors prefer to close on home sales quickly, with fast cash offers, so you can resolve your debt and close on your home sale quickly and without the hassle of a traditional sale.

If you owe taxes, but still want to sell your home, you have options. Whether you can pay back the taxes you owe before selling your home, or use the home sale to pay back your debt, there’s a way to navigate this situation that will resolve your financial problems and help you move forward in a new home.

 

If you owe property taxes on your home and are trying to sell, or aren’t sure what to do, talk to the team at Hometown Development. We’d be happy to clearly outline all of your options, and help you decide on a path that best for you, your home, and your finances.

7 Key Benefits of Downsizing

Posted on by Hometown Development

If you’re considering selling your large home to move into a smaller one, there are many advantages to living a cozier life. Let’s take a look at several benefits of downsizing you may not have thought about.

#1 Increased Capital

Starting with one of the most important benefits of downsizing, when you sell a larger house to buy a smaller one, you’ll likely have money to spare which can be used to pay off debts or invest in your future. With a smaller home, you’re also likely to have a smaller monthly mortgage payment, so you can enjoy the savings and use them toward something important to you.

#2 Reduced Costs

When you downsize, you can reduce your utility costs and living expenses by living in a smaller dwelling. Not only is there less house to maintain, but you’re also saving energy to power and heat a smaller home. Reduced square footage equals a reduction in energy costs, which not only improves your carbon footprint, but means serious savings for you.

#3 A More Manageable House

Another of the benefits of downsizing to a smaller home is more time for you and your family. Smaller homes require less upkeep, which means less time stressing about when you’re going to do chores, and less time doing chores when you get around to them. When you have a smaller house to take care of, you have more time to do other things that are more important to you — time to pick up that new hobby, spend time with your family, or get out and see more of the world.

#4 More Opportunity to Travel

A larger home ties you down with upkeep, security concerns, and general stress. When you downsize, it frees up your time and energy for other pursuits, like traveling. In a smaller house, you can spend less time worrying about housework and take that road trip you’ve been dreaming about. 

#5 A Happier Family

Downsizing can lead to a happier family dynamic. Living in close quarters encourages the family to spend more time together in communal spaces like the living room and kitchen. Rather than withdrawing to their own corners of a large house, family members are forced to spend time together — for the better. Although it can take a little adjusting at first, one of the major benefits of downsizing your home is a focus on gathering the family to eat, chat, and enjoy one another’s company.

#6 Effective Budgeting

Did you know that one of the benefits of downsizing is that it can help you stick to a budget? If your resolution is to keep your spending in check, downsizing can help you do just that. With a smaller home, you will enjoy reduced monthly expenses including a more manageable mortgage payment, and lower utilities. Also, since you don’t have extra space to fill with furniture and things, you’re less likely to spend the money on things you don’t need, and more likely to get creative with storage and multipurpose items.

#7 Something New

Downsizing your home is a great way to start the next chapter of your life and try something new. Whether your kids have grown and moved out of the family house, you’ve just gone through a divorce, or you’re just ready for a new adventure, you can start your new life in a smaller home and embrace the benefits of downsizing.

Thinking about downsizing, but stressed about the prospect of preparing a home for sale? Downsize without the hassle — talk to the team at Hometown Development about your options for a simple, fast home sale.

How Does a Second Mortgage Work?

Posted on by Hometown Development

Second mortgages are a type of lien used on a property that is already attributed to a loan. They can be beneficial tools for some homeowners and a huge risk for others. If you’re considering a second mortgage on your home, it’s important to be prepared for what it means for your home and your financial future.

Here’s everything you need to know about a second mortgage, including what it is and how a second mortgage works.

What Is a Second Mortgage?

A second mortgage, similar to a traditional mortgage, is a loan that is taken out against your home as collateral. Since it is taken out after the purchase loan, it’s called a second mortgage. A second mortgage is also second in line to be repaid if your home is sold in the foreclosure process.

Some homeowners may be interested in taking out a second mortgage if they need to free up money to pay for things like unexpected repairs, bills, or fees. While taking out a second mortgage may be an option for many homeowners, it also comes with risks that are important to understand before making this financial decision. 

Let’s look at how a second mortgage works, some of the pros and cons of this type of loan, and some other options that may work for you if a second mortgage doesn’t feel right. 

How Does a Second Mortgage Work?

A second mortgage works by borrowing based on the home equity you have accrued. Home equity is the value of the home you own. When you have a mortgage on your home, you don’t technically own all of it, so the part that you do own (equity) is the part of the mortgage you have paid off. Keep in mind, this doesn’t include interest, which makes up a significant portion of your mortgage payment.

How Do You Build Home Equity?

Equity can be accrued in a few ways. First, if your home’s value increases over time, so does your equity. This can happen if you make improvements to your home, or the real estate market in your area becomes more lucrative and your home’s value appreciates. Also, when you make payments on your mortgage, you will own a larger percentage of your home, so the total equity you have will increase. 

Similarly, if your home’s value decreases over time or you take out more loans against your home (reducing the percentage you own) your home equity decreases.

What Does a Second Mortgage Look Like?

When your lender grants a second mortgage, it will typically be a percentage of your home equity (on average, 20 percent). The second mortgage can take a few different forms. It can either be granted as a lump sum or a revolving line of credit.

Second Mortgage Lump Sum

The home equity loan can be given as a lump sum for you to spend as you wish. Second mortgages can be used in an almost infinite number of ways – to pay for repairs to your home, pay off credit card debt, or pay tuition fees. When you receive the lump sum, you will begin making monthly payments toward resolving the debt, with interest of course. This is an additional payment to that of your “first” mortgage, or purchase loan.

Second Mortgage Line of Credit

A home equity line of credit works similarly to a credit card, your loan amount is stated as the credit limit and you can borrow against that amount. Whatever you borrow is what you pay interest on and repay — so if you only use 5,000 of the 10,000 limit, you will make payments on the 5,000. You can make as many withdrawals as you want up to the credit limit. Once the borrowed amount is repaid, you can withdraw the full 10,000 limit again.

Pros and Cons of a Second Mortgage

While a second mortgage can free up your home’s equity into funds you can use right now, it could put you in a difficult financial position. Before taking out a second mortgage on your home, consider the pros and cons of this important decision.

Pros of a Second Mortgage

  • Lower interest rates than credit cards: due to the high value of your home, your interest rates for a second mortgage will likely be significantly lower than your credit card interest rates. For this reason, many people use a second mortgage to pay off their credit card debt, and then repay the second mortgage over the loan term.
  • Flexible uses: With a second mortgage, you are not restricted to using the loan amount in any way. You can spend the money on almost anything — as long as you’re able to pay it back with interest over the agreed period of time.
  • Higher loan amounts: A second mortgage allows you to borrow more than you could usually get from a loan without using your home as collateral. Because homes are typically worth a significant amount of money, there is more collateral to borrow against, giving you a higher loan amount.

Cons of a Second Mortgage

  • Higher interest rates than refinancing: Because there is less collateral than your original home loan, second mortgage interest rates will be higher than those of your original mortgage. If refinancing isn’t an option, you may still be able to take out a second mortgage.
  • Financial Strain: A second mortgage requires an additional mortgage payment to your current monthly bills, which could put a strain on your finances, especially if you’re taking out the second mortgage to cover previous debt, or find it difficult to meet your original mortgage payments.
  • Higher risk of foreclosure: If you stop making payments on any of your mortgages, you enter the foreclosure process. With the additional strain of a second mortgage, there’s a higher risk of foreclosure. This is why it’s not a good idea to use a second mortgage to pay for living expenses or costs — even for your first mortgage — as this method of spending is not sustainable and will likely result in losing your home.

Alternatives to a Second Mortgage

Is a second mortgage really the best way to accomplish your goals? If the risk of a second mortgage isn’t appealing to you, you may still have other options available for freeing up some extra cash flow from your home. As an alternative to a second mortgage, you could discuss refinancing your mortgage with your lender, or consider selling your home to resolve debt, get out of a troublesome mortgage, or free up the available capital locked in your home.

Refinancing Your Home Loan

When you refinance your home loan, you discuss your loan terms with your lender. They may be able to repackage your home loan with lower interest rates, or a longer loan term, depending on your needs. With a refinanced loan, the new loan takes the place of your existing mortgage. This is a great way to save a little money without having to assume the risks of a second mortgage.

Sell Your Home to a Real Estate Investor

If refinancing isn’t an option, or you’re having trouble making payment on your original purchase loan, a second mortgage isn’t going to help you resolve your financial problem. The best thing you can do with a home you cannot comfortably afford is to sell it and look for another that better fits your financial needs. When you sell your home, the sale will pay off the original mortgage, and you will have cash left over you can use to purchase another home, or pay off other debts or costs. 

For a simple, hassle-free sale, you can sell your home to a real estate investor. When you sell to a real estate investor, they will assess your home based on its current condition and make you a fair cash offer based on its market value. With this type of sale, you don’t have to make any repairs, prepare your home for the market, or hire a Realtor. Best of all, in as few as five days, you could have your home sold and liquidate the equity locked in your home for use however you see fit.

If you’re considering taking out a second mortgage on your home, it’s important to take time to really think about it. If your finances might be better served by getting out from under a troublesome house, the Hometown Development team can help. Give us a call to learn more about your options today.

How to Sell Rental Property With or Without Tenants

Posted on by Hometown Development

If you have a rental property to get off your hands, it can be complicated to sell quickly. The sale process can seem even more complex if you still have tenants occupying some or all of the units on the property. While selling a rental property without tenants is more straightforward, both are possible with the right buyer. Let’s talk about how to sell rental property with or with or without tenants — without the hassle. 

 

How to Sell Rental Property Without Tenants

If you need to sell rental property that’s vacant, the process isn’t too different from a typical property sale. You’ll go through the same steps of preparing the property for sale and listing it on the market, but you’ll be looking for the right buyer willing to take on an investment property — and all of the upkeep it requires. Decidedly easier than selling with tenants, prepare the property for sale, and find the right buyer looking for an investment property

In these situations, real estate investment firms make an ideal buyer for a rental property because they are actively looking for real estate investments, have the time and energy to devote to a new project, and have the capital available immediately to make you a fair offer and sell on your timeline. If you need to sell a rental property without tenants, sell to a real estate investor for a fast, hassle-free sale.

How to Sell Rental Property With Tenants

It’s no secret that it can be more difficult to sell a rental property with tenants. This is mostly because it takes just the right buyer for the sale. You also have to consider your tenants’ rights and try to make the sale easier for all involved parties. 

To sell a rental property with tenants, you’ll likely need to vacate the property before you can sell, unless you can find a buyer willing to take over the current leases. Let’s talk through a few of the options available to you.

Wait for Tenants’ Leases to Expire

If your tenants rent month-to-month, you could simply give them notice and the appropriate amount of time to vacate. Or, wait until the current lease term is up for the last tenant. However, if you need to sell now, you may not have time to wait 6 months or more for your tenants to move on their own. In that case, it’s best to be up-front with your tenants about your plans to sell, and hope that they will move out sooner. Or, you can try to convince them to move.

Convince Tenants to Move

Tenants with a fixed-term lease are entitled to fulfill the lease term and continue living at the property. If the end date of the lease is beyond the sale date, the buyer must take over the lease. However, if both the property owner and the tenant mutually agree to dissolve the lease, both parties can decide on a flexible end date.

The best way to go about this is to have an honest discussion with your tenants about selling the property. It’s important to actively communicate with your tenants throughout the process. This way they’ll feel involved in the process and be more likely to participate in making the sale a success for everyone.

Persuading your tenants to move cannot involve threatening behavior or a blanket refusal to maintain the property. Their rights clearly state they may continue to live on the property until the end of their lease, so the ball is in their court, so to speak. You may try to sweeten the deal for tenants to move early, such as offering to pay moving expenses or the security deposit for their next apartment, but ultimately it is their decision.

Sell Rental Property to Buyer Who Will Honor Tenants’ Leases

The final option is to find a buyer willing to take over the current leases of your tenants. Under the new owner, tenants will maintain their current lease agreements. Once the lease term has expired, it’s up to the new owner whether they want to renew the lease with the tenant or not. 

This option suits tenants because they won’t be required to vacate, but can make it more difficult to find a buyer willing to take on the extra responsibility. If they want to schedule renovations, they may have to wait until the tenants move on their own.

Sell Rental Property to a Real Estate Investor

If you need to sell rental property with tenants, consider selling to a real estate investor. A real estate investor has the time and capital to sell according to your timeline and will work to find the best solution for you and your tenants. They care about your situation as well as your tenants’ rights and will help the sale go through with minimal disruption.

When you sell rental property to a real estate investor, you don’t need to worry about making repairs and updates to the property before selling. You don’t have to work with a Realtor, or host open houses. You don’t have to wait weeks or months to find the right buyer for your property. Real estate investors can help you sell rental property fast for cash in a hassle-free sale that works for you and your tenants.

Need to sell your rental property, but not sure what it means for the current occupants? Talk to Hometown Development. We can help make selling your property easier for you and your tenants.

How to Sell a House by Owner: A Step-by-Step Guide

Posted on by Hometown Development

Selling a house by owner is a very attractive option for many homeowners. Some of the benefits include the flexibility to sell on your own terms and timeline, the ability to fix what you want — or not make any repairs or changes before you sell, and, possibly most importantly, the fact you don’t need to work with a Realtor, nor pay their commission once the house is sold.

Selling a house by owner comes with its own challenges, however. You’ll be left to navigate the fluctuating real estate market on your own without anyone to help you get the word out about your home, show the home to potential buyers, negotiate offers, and help the sale close smoothly.

If you’re determined to sell the house yourself, here are the steps you’ll need to take to make that happen efficiently. 

Steps to Selling a House by Owner

Selling a house by owner can be complicated, depending on how much work your home needs before it’s ready to sell and your expectations from the sale. To get started, you’ll need to establish a baseline for what your home is worth, so you can determine the best listing price. 

Step 1: Determine Your Home’s Market Value

Finding the market value of your home will help you determine how much you can expect from the sale. There are a few ways you can go about this:

  1. Talk to a real estate agent. You can ask a Realtor to walk through your home and help you estimate its value. Keep in mind, you may get a biased response as they’ll want you to list with them for a higher price and commission.
  2. Get an appraisal done. A formal appraisal will provide the most unbiased, accurate estimate of your home’s value. However, these assessments can cost up to $500.
  3. Make an educated guess. If you do your market research of similar homes in your area and their average sale prices, you may be able to ballpark your own home’s value. In your comparison, consider special features or recent repairs like a pool or brand new roof that may make other homes more desirable and therefore able to fetch a higher sale price.

Step 2: Prepare for the Market

Once you have a value as a starting point, you can start the preparations of listing your home for sale. This is when you go through your home and decide what needs to be fixed, changed, or upgraded to make your home market-ready. These could be small fixes like cosmetic changes to the paint colors or flooring, tasks like a deep cleaning of your home’s carpets, or expensive tasks like roof or foundation repair.

Whatever you decide to do to your home in this stage should be to help it become ready to be sold or sell for a higher price. There’s no point in pouring money into projects you won’t earn back in the sale price — unless they’re essential to potential buyers —  such as any damage that makes the home unsafe or would be an immediate expense for the new owners (mold, leaks, damaged wiring/plumbing, etc.).

Preparing your home for sale also includes making your home look more aesthetically pleasing to potential buyers. A thorough cleaning, sprucing of landscaping and exterior of the home, and general decluttering of your home are all important steps to selling a house by owner.

Step 3: Get Your Home Out There

Once your home is ready for sale, one of the most important steps to selling a house by owner is to get your home out there for buyers to find. Unfortunately, this is often the most difficult stage if you’re selling your home yourself. To market your home for sale by owner, here are a few ways to get the word out:

  • Word of mouth: tell your friends, share photos on social media, encourage others to share the news with their network.
  • Listing online: Post information and photos of your home to real estate sites like Zillow and Realtor.com.
  • Print Media: Create brochures and flyers with information about your home sale and post them in visible places.
  • Put up a sign: Having a physical sign in front of your home will be a basic, but very effective tool to drum up interest in your home.
  • Host an open house: Even if half the attendants are curious neighbors and friends stopping by to look around, they might keep your home in mind if they know someone looking.

Step 4: Wait

In between open houses and showings, all you can do is wait for an offer. Unfortunately, when selling a house by owner, you’re at the mercy of the housing market. If your house has been on the market for a while, you may consider lowering the price or making some other improvements to the home to make it more attractive to potential buyers.

Step 5: Negotiate an Offer

If you do receive an offer on your home — congratulations! This is a big deal, but you’re not done yet. If the offer is well below your asking price, you may need to negotiate with the buyer. The buyer may have other conditions to their offer, such as the completion of certain repairs or even for the seller to cover the closing costs. 

This is often a situation where a Realtor can come in handy to field offers and see if a buyer is actually interested in purchasing — and willing to negotiate. If you’re negotiating with buyers yourself, be careful, as being completely inflexible may scare offers away.

Step 6: Close on the Sale

Once the sale price is settled, a written sales contract will be drawn up and signed by both parties. The contract includes the final sale price, conditions of the sale, and where and when the closing will take place. A closing agent leads the legal closing process, and you will need to follow the process and submit documentation when required. 

If the buyer is taking out a mortgage to purchase your home, the closing process can be even more tense. Many lenders have certain conditions that must be met before the loan can be issued. If the financing for your buyer falls through for any reason, the sale won’t be able to go through and you’ll be back to square one.

When you sell your home by yourself, you have to be involved in every step, which can be time consuming, expensive, and stressful. If you want to skip this lengthy and involved process, but still sell your home by owner, you have another option: you can sell your house fast for cash to a real estate investor.

Sell a House By Owner to a Real Estate Investor

When you sell to a real estate investor, you get to skip the inconvenient parts of preparing your home for sale like working with a Realtor, and sell your home quickly and hassle-free. Selling to a real estate investor means:

  • No repairs, changes, or upgrades before selling your home
  • No Realtors, listing fees, or open houses
  • No waiting for a buyer, or waiting for financing to come through

When you sell to a real estate investor, you can effectively simplify the steps to selling a house by owner into one. They will make you an offer for your home in its current condition for a cash offer that’s based on its real market value. Also, many real estate investors prefer to work quickly, meaning you can have your home sold in as few as five days.

Selling a house by yourself can be a hassle. If you’re looking to avoid Realtor fees, but you don’t want to go through the whole process of selling a home traditionally, a cash offer might be a great option for you. For your no-obligation offer, reach out to the team at Hometown Development.

How Do I Stop a Property Tax Foreclosure?

Posted on by Hometown Development

Property tax foreclosure is a complicated situation to be in. Once the foreclosure process has begun, it can seem like there’s no way to get ahead of it. Fortunately, you can stop property tax foreclosure and understanding how it works is critical to saving your home and your credit.

 

What is Property Tax Foreclosure?

Property tax is a fee you pay the county you live in, based on the value of your property. This tax must be paid annually. If you fail to pay your property taxes, the property tax foreclosure process takes three years to complete, after which you may lose your home and significantly damage your credit.

To better understand how to stop property tax foreclosure, let’s start by taking a look at how the property tax foreclosure process works.

Property Tax Foreclosure Process

If property taxes are not paid on time, the tax is considered delinquent and penalties are applied. After one year, if the property tax payment is not made or is incomplete, your property is placed on a preliminary forfeiture list

At this point, you can stop property tax foreclosure if you’re able to pay back the owed taxes and any associated fees and interest. Interest rates during the first year are at 1 percent per month, but they will go up to 1.5 percent after the first year. It will be easier to pay back the missed taxes if you’re able to pay them sooner, rather than wait — even if you can only make payments toward the owed amount.

After Year 2, the property is forfeited to the county treasurer. Forfeiture does not mean the same as foreclosure. You can continue to live in your home after the property has been forfeited. However, once you’re in the forfeiture stage, you can only pay back all the owed taxes in a lump sum in order to stop property tax foreclosure. This is a very difficult thing to do if you’re still struggling to pay back the taxes and accrued interest from the first year of delinquency. 

How to Stop Property Tax Foreclosure

Once we can assess where you are in the process, we can understand the best way to stop property tax foreclosure for your situation. If you’re facing forfeiture or property tax foreclosure you still have options to save your home: you can pay off all the owed taxes, or sell your home in order to stop property tax foreclosure.

How to Stop Property Tax Foreclosure by Paying Owed Taxes

To stop property tax foreclosure you will need to pay back the owed taxes. Depending on where you are in the property tax foreclosure process, you may either be able to spread out payments over a year, or you’ll need to make a single payment. If you don’t have the necessary funds right away, there may be emergency loans available to help you meet tax deadlines, after which you can pay back the taxes over a longer period of time.

Some taxpayers may be eligible to apply for deferment of property taxes. Eligibility requirements are steep, and only some low income, disabled, veteran, or elderly applicants may be permitted to defer taxes. 

Property tax deferment allows taxpayers more time to pay back the owed taxes. However, it cannot stop property tax foreclosure from moving forward once taxes are due.

Can’t Pay Your Property Taxes? Here’s How to Stop Property Tax Foreclosure

If you can’t afford to pay the property taxes and tax deferment isn’t an option, you will likely need to part with your home in order to resolve the delinquent taxes. Rather than wait for your home to go to auction, you can take control of your situation and sell your home on your own terms. Then, you can pay the owed tax and move on in a home you can better afford.

The advantage of stopping property tax foreclosure by selling your home is that you can avoid the severe hit to your credit that happens in a foreclosure. This puts you in a better position to rebuild your credit and financial status, so you can apply for a loan or purchase another home in the future.

How to Stop Property Tax Foreclosure by Selling Your Home

When you sell your home to stop property tax foreclosure, it’s important to complete the sale quickly. If you sell your home fast, you won’t accrue as much interest, so you’ll be able to pay off the tax and use the rest of the sale towards your next home.

To sell quickly, you can price your home competitively and wait for a buyer to find you, or sell to a real estate investor for a quick and hassle-free sale.

Price Your Home Competitively

When you sell your home on the traditional real estate market, it may take time to prepare your home for sale, work with a Realtor, and wait for a buyer to make an offer. Pricing your home competitively may entice a buyer to purchase your home in time to stop property tax foreclosure. Alternatively, if you don’t want to go through the process and hassle of selling your home this way, you can sell to a real estate investor.

Sell Your Home to a Real Estate Investor

Selling your home to a real estate investor is a great option if you need to sell quickly. Real estate investors will purchase your home as-is, meaning no preparation needed to get it ready to sell. They will make you a fair offer based on the market value of your home in its current condition. 

Also, because offers from real estate investors are often in cash, the closing process is simplified, so you can close the sale in as few as five days or on your own timeline. If you’re looking for a fast, simple option to sell your home to stop property tax foreclosure, this is it.

If your property is at risk of property tax foreclosure, now is the time to talk to Hometown Development. Foreclosures become final at the end of March, so there’s still plenty of time to find a solution. Let our team help.

Licensed Contractor

Licensed Builder
Licensed Real Estate Agent

All closings performed by Bell Title
Meghan Vandenhout 616-942-8955

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