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Tag: Selling

Is Selling My House for Cash a Good Idea?

Posted on by Hometown Development

Selling your house for cash can be a great idea, but it’s important to consider all the factors involved before making the decision. In this blog, we will explore the pros and cons of cash home sales, and provide you with information from three reputable sources to help you make an informed decision.

Pros of Selling Your House for Cash

  1. Speed: One of the biggest advantages of selling your house for cash is speed. Unlike traditional home sales, which can take months to close, cash home sales can be completed in just a few days. This is because cash buyers are not subject to the same financing contingencies that traditional buyers are. They don’t need to get a mortgage, which means there are no appraisal delays or loan underwriting processes to worry about. This can be especially beneficial if you need to sell quickly for personal reasons, such as a job change or financial hardship.
  2. Simplicity: Cash home sales are also much simpler than traditional home sales. You won’t have to worry about real estate agents, negotiations, or closing costs. You’ll simply receive a fair offer from a cash buyer, and if you accept, the sale will be completed in a matter of days. This can be a great option if you’re looking for a hassle-free way to sell your home.
  3. No Need for Repairs: Most cash buyers are looking for properties that are in need of repairs, so they can make a profit by fixing them up and reselling them. This means that you won’t have to spend money on fixing up your property before you sell it. You can sell your house as-is, which can save you time and money.

Cons of Selling Your House for Cash

  1. Lower Sales Price: One of the biggest disadvantages of selling your house for cash is that you may not receive as much money as you would if you sold it through a traditional home sale. Cash buyers are typically looking to buy properties at a discount, so they can make a profit by flipping them. This means that you may have to sell your house for less than its market value.
  2. Limited Options: Selling your house for cash may limit your options when it comes to choosing a buyer. There are only a few cash buyers in the market, so you may have to accept an offer from someone you’re not comfortable with. Additionally, because cash buyers are looking to buy properties at a discount, you may not receive as many offers as you would with a traditional home sale.
  3. Scams: Unfortunately, there are many scams associated with cash home sales. Be wary of any buyer who tries to pressure you into selling quickly, or who asks you to sign a contract before you’ve had a chance to fully understand the terms. Make sure you work with a reputable cash buyer, and never sign anything until you’re completely comfortable with the terms.

According to Forbes, “Cash home sales can be a good option for those looking for a fast and simple sale, but it’s important to be aware of the potential downsides. Make sure you understand the terms of the sale, and be wary of any buyer who tries to pressure you into a quick sale.”

The Balance states, “Cash home sales can be a quick and simple way to sell your property, but they can also result in a lower sales price. Make sure you understand the terms of the sale, and be aware of the potential risks involved.”

Finally, Realtor.com says, “Cash home sales can be a good option if you need to sell quickly, but they may not result in the highest sales price. Make sure you understand the terms of the sale, and be aware of the potential downsides. Work with a reputable cash buyer, and never sign anything until you’re completely comfortable with the terms.”

In Conclusion:

Selling your house for cash can be a great idea in certain situations, but it’s important to weigh the pros and cons carefully before making a decision. If you need to sell quickly, or if you’re looking for a hassle-free way to sell your property, a cash home sale may be the right option for you. However, if you’re looking to get the highest possible sales price for your property, you may be better off going with a traditional home sale. It’s important to understand the terms of the sale, be aware of the potential risks, and work with a reputable cash buyer. Do your research, consider all the factors involved, and make an informed decision that’s right for you and your family.

Should You Keep or Sell an Inherited Property?

Posted on by Hometown Development

Inheriting a house can be both a blessing and a burden. On one hand, you’ve just inherited a valuable asset that could be worth a substantial amount of money. On the other hand, you’re now responsible for a property that you may have never wanted in the first place. One of the most common decisions that people who have inherited a house have to make is whether to sell it or keep it. In this blog post, we’ll explore the pros and cons of selling an inherited house, and help you decide what to do with it.

Pros of Selling an Inherited House

  1. Liquidity: One of the biggest benefits of selling an inherited house is that you’ll have instant access to a large sum of money. If you’re inheriting a house from a loved one who has passed away, this money can help cover any funeral expenses and other bills that need to be paid.
  2. Ease of Maintenance: Inheriting a house also means inheriting its responsibilities. If you don’t live in the house or if it’s located in a different state or city, maintaining the property can be difficult and costly. By selling the house, you can free yourself from these responsibilities and the stress that comes with it.
  3. Opportunity to Invest in Other Assets: If you don’t have any specific plans for the money from the sale of the inherited house, you can consider investing it in other assets, such as stocks, bonds, or mutual funds. This can help you grow your wealth over time.

Cons of Selling an Inherited House

  1. Capital Gains Taxes: When you sell an inherited house, you’ll likely have to pay capital gains taxes. The amount of taxes you’ll owe will depend on several factors, including the value of the property and how long you’ve owned it. Before making a decision to sell, it’s important to consult with a tax professional to understand the tax implications of selling an inherited property.
  2. Emotional Attachment: If you’ve inherited a house from a loved one, the thought of selling it can be emotionally difficult. The house may have sentimental value, and selling it can feel like you’re letting go of a part of your loved one’s legacy.
  3. Potential Loss of Income: If you were planning to rent out the inherited house, selling it means that you’ll lose the rental income that you would have received.

Making a Decision

  1. Assess the Financial Situation: Before making a decision, it’s important to consider your financial situation. Do you have any outstanding debts or bills that need to be paid? Are you comfortable with the amount of taxes that you’ll owe if you sell the property?
  2. Consider the Emotional Factors: If you have an emotional attachment to the inherited house, it’s important to take this into account. Ask yourself if the emotional value of the house is worth holding on to, or if you’d be better off letting it go and using the money to invest in other assets.
  3. Consider the Location: If you’re inheriting a house that’s located in an area with a high demand for rental properties, you may want to consider keeping it as a rental property. This can provide you with a steady source of income, which can be especially useful if you have ongoing expenses or if you’re looking for a way to supplement your income. However, it’s important to understand that being a landlord comes with its own set of responsibilities and expenses. You’ll need to be prepared to handle any repairs and maintenance issues, as well as collect rent and manage any tenant-related problems.

Take Your Time: Making a decision about what to do with an inherited house is not something that should be rushed. Take the time to consider all of your options, talk to family members and friends, and weigh the pros and cons of each option. You may even want to seek the advice of a financial advisor or tax professional to ensure that you make the best decision for your situation.

In Conclusion:

Inheriting a house can be both a blessing and a burden. Selling it can provide you with immediate liquidity, ease the burden of maintenance, and provide you with the opportunity to invest in other assets. However, you’ll also have to pay capital gains taxes, face the emotional difficulty of letting go of the property, and potentially lose out on rental income. Keeping the property as a rental can provide you with a steady source of income, but you’ll also need to be prepared to handle the responsibilities that come with being a landlord. Ultimately, the decision of whether to sell or keep an inherited house will depend on your individual financial and emotional situation. Take your time, consider all of your options, and make the decision that is right for you.

The Benefits of Selling Your House During Divorce

Posted on by Hometown Development

Selling a house during a divorce can be a stressful and emotionally charged experience, but it’s important to understand the tax benefits that may be available to you. In Michigan, there are several tax benefits that can be gained from selling a house during a divorce, and it’s important to understand these so that you can make informed decisions about your financial future.

Know Your Real Estate Tax Basics

First, it’s important to understand the basics of how taxes on real estate sales work in Michigan. When you sell a property in Michigan, you are required to pay capital gains tax on the profit you make from the sale. The amount of tax you owe will depend on a number of factors, including how long you’ve owned the property, how much you’ve invested in it, and what the current market conditions are like.

However, there are some important tax benefits that can help mitigate the impact of selling a house during a divorce in Michigan. For example, if you’ve lived in the property for at least two years, you may be eligible for the exclusion of up to $250,000 in capital gains from your taxable income. This exclusion applies to single taxpayers and married couples who file joint returns, and it can provide significant relief from the tax burden associated with selling a property.

Are You Familiar With The 1031 Exchange?

Another important tax benefit to consider when selling a house during a divorce in Michigan is the 1031 exchange. This allows you to defer paying capital gains tax on the sale of your property by reinvesting the proceeds into a similar property. This can be a useful strategy for those who are looking to minimize their tax liability and preserve their wealth for the future.

In order to take advantage of these tax benefits, it’s important to work closely with a qualified tax professional. They can help you understand the tax implications of your divorce settlement and help you develop a plan to maximize your financial benefits.

In addition to these tax benefits, there are also some other financial considerations to keep in mind when selling a house during a divorce in Michigan. For example, it’s important to understand the value of the property, as well as the costs associated with selling it. This can help you make informed decisions about how to divide the proceeds of the sale, and how to use the funds to build a secure financial future.

It’s All About The Timing!

Another important consideration is the timing of the sale. If you are able to sell the property quickly, you may be able to minimize your tax liability and maximize your financial benefits. However, it’s important to work closely with your divorce attorney to determine the best course of action for your unique circumstances.

Finally, it’s important to remember that selling a house during a divorce can be a complex and emotional experience. It’s important to have a supportive team in place, including a qualified divorce attorney and tax professional, to help you navigate the process and make informed decisions about your financial future.

In Conclusion

Selling a house during a divorce in Michigan can be a stressful and emotional experience, but it’s important to understand the tax benefits that may be available to you. From the exclusion of up to $250,000 in capital gains to the 1031 exchange, there are several strategies that can help you minimize your tax liability and preserve your wealth for the future. Work closely with a qualified tax professional and divorce attorney to develop a plan that works best for you and your unique circumstances.

Shifting Your Mindset For Selling Your House

Posted on by Hometown Development

Selling a home can be a complex and emotional journey, but the key to a successful sale starts with your mindset. Whether you’re a first-time seller or a seasoned pro, it’s important to approach the process with a positive and proactive attitude.  In this post, we’ve gathered expert tips from reputable sources to help you shift your mindset and make your home sale a success.

Focus On The Outcome, Not The Process.

According to a study by Harvard Business Review, one of the biggest mistakes people make when they’re trying to achieve a goal is to focus too much on the process and not enough on the outcome. This can lead to stress and burnout, which can make it difficult to reach your goal. Instead of getting bogged down in the details of the home selling process, try to focus on the end goal: selling your home for the best possible price. This shift in perspective will help you stay motivated and on track throughout the process.

Embrace Change.

Change can be difficult, but it can also bring new opportunities and experiences. According to a study by the University of California, Berkeley, embracing change can help you reduce stress and improve your overall well-being. When selling your home, try to see it as a new adventure, not an end. Think about the positive aspects of the transition and what you’re looking forward to in your next chapter.

Get Organized.

Getting organized is a key aspect of success, and it’s no different when it comes to selling your home. A study by Forbes suggests that having a clear plan in place can help you reduce stress and stay focused on your goal. Make a list of tasks that need to be completed, such as decluttering, repairing any damage, and staging your home for showings. Having a clear plan in place will help you stay on track and minimize stress.

Seek Advice From Friends and Family.

Selling a home can be a lot of work, but it doesn’t have to be done alone. According to a study by the American Psychological Association, social support can help reduce stress and improve well-being. Don’t be afraid to ask friends, family, or even your neighbors for help. Whether it’s decluttering your home, preparing it for showings, or just getting through the emotional ups and downs of the process, having a support system can make all the difference.

Take Care of Yourself.

Finally, it’s important to take care of yourself during the home selling process. A study by the Mayo Clinic suggests that simple self-care practices, such as exercise, healthy eating, and getting enough sleep, can help reduce stress and improve your overall well-being. Make sure to take breaks, do something you enjoy, and give yourself time to recharge. This will help you approach the home selling process with a positive and energized attitude.

Remember, selling your home is not just a transaction, it’s a transformative experience. It’s an opportunity to let go of the past and create a new beginning. To achieve a successful sale, learn to embrace a positive mindset, stay focused on your goal, and be open to change. Get organized, seek guidance from trusted sources, and don’t forget to prioritize your well-being along the way. So take a deep breath, trust the process, and get ready to turn your real estate aspirations into a reality that exceeds your wildest dreams.

West Michigan’s Real Estate Market: How to Sell Your Home Fast

Posted on by Hometown Development

Putting your home on the market in West Michigan can be hard enough, but needing to sell your house fast can make the process a lot more stressful. Luckily, there are some things you can do to ensure your house sells faster and without stress.

What Is West Michigan’s Real Estate Market Like Currently?

West Michigan’s real estate market is currently a seller’s market. In December 2022, home prices were up 1.1% compared to the year before and the median price was around $262,000. 

But despite being a seller’s market, the number of homes for sale in 2022 was 209 which was significantly lower than in 2021 when it was 318.

Additionally, it’s predicted that West Michigan home prices will continue to go up for at least the first half of 2023.

For more stats on West Michigan’s current real estate market, click here.

How Fast Do West Michigan Homes Typically Sell?

How long it takes for a home to sell in West Michigan can depend on a variety of factors, but the average in 2022 was around 60-70 days. That timespan goes from the listing through the end of closing. This long timespan is one of the many problems you could face selling your home traditionally on the market.

How Can You Speed Up That Process and Sell Your Home Fast?

If you’d like to speed up the selling process and sell your house in less than 70 days, there are a few tips and tricks you can use to move it along a little quicker. 

Lower Your Listing Price

One way you could sell your house quickly is to price your home competitively. By lowering your listing price, you’ll likely attract more buyers who are ready to jump on a good deal. 

However, you — like many other homeowners — may not want to resort to this option. You may have put a lot of work into updating your home, paying realtor fees, and more, and lowering the price wouldn’t do you any good. 

Sell As-Is

Selling your house as-is means that a buyer gets the property exactly how it is. You don’t have to make any repairs or add any upgrades. The buyer gets exactly what they see. This can often shorten how long it takes to sell a house because there is no back and forth or negotiating on home conditions or repairs.

There is also likely a specific buyer who is looking for homes that are selling as-is. People looking for fixer-uppers or homes they can flip will often buy homes as-is. By selling as-is, you may not have to sift through as many potential buyers, so you can sell your home much more quickly.

Real estate investors like Hometown Development buy homes in West Michigan for cash from homeowners who need to sell their homes quickly or need to sell a home that is difficult to sell for some reason — sometimes in as little as 5 days! This could mean houses facing foreclosures, someone going through a divorce, or a house with water damage. 

Regardless of your situation, if you really need to sell your home as fast as possible, we’d love to hear from you and help you.

Hassle-Free Home Selling 101

Posted on by Hometown Development

Selling a house can be an overwhelming ordeal. Just thinking about the process can turn some homeowners away, even if they’re more than ready to move onto something new. But that doesn’t have to be the case for you. 

If you’d like to sell your home and start your next adventure, you have options that won’t take months to complete, set you back financially, or require a lot of energy — regardless of your situation and your home’s condition. At Hometown Development, we call this hassle-free home selling. We’ll dive deeper into what that means below.

What Is Hassle-Free Home Selling?

The traditional home selling process is often lengthy and labor-intensive. You have to find a realtor, make repairs to your property, clean and stage your home, list it, have an open house, review offers…the list goes on. While it’s the best and most popular choice for many homeowners, it can demand a lot of physical and mental energy — not to mention time and money. 

Hassle-free home selling is a different approach to selling and moving on from your home. It simplifies or removes many parts of the selling process, so that you have less to worry about and more time, energy, and money on your hands. 

How to Sell Your Home Hassle-Free: 3 Options

If you’re interested in a hassle-free home selling process, here are your top three options. 

1. Sell Your House in As-Is Condition

Selling your house in as-is condition means you don’t need to make any repairs, do any cleaning, or stage your home for potential buyers. It sort of follows the “what you see is what you get” philosophy — roof leaks, stained carpet, broken appliances, and all. 

If your home is in need of a lot of repairs, you may be wondering if this is even a possibility for you. It is! You’d be surprised at the number of buyers that are interested in “fixer uppers” nowadays. As long as you consider the cost of all the repairs and updates a buyer would need to make while you’re determining an appropriate listing price, you’ll be in good shape to sell.

2. Sell Your House Without a Realtor

Working with a realtor is beneficial for some homeowners, but it’s not mandatory. If you don’t require help from a realtor and would like to do a FSBO (For Sale By Owner) sale, you could skip some traditional steps in the selling process and enjoy some unique advantages most home sellers can’t. You might be a good candidate for a FSBO sale if you:

  • Want to sell your home quickly
  • Want to save on the costs of selling your home
  • Are a do-it-yourself kind of person

Selling your home without a realtor can remove some of the hassle of a traditional home selling process by shortening the selling timeline, avoiding home inspections and showings, and saving on real estate commission fees. 

3. Sell Your House For Cash

Selling your house for cash is arguably the best way to reduce hassle in the home selling process. Why? You’ll have less legal and financial paperwork to sort through — making the process smooth, simple, and fast. Plus, many all-cash home buyers are professional real estate investors who are willing to buy homes in as-is condition. 

If you’re wary of selling your home for cash or are worried about not getting a fair offer, you might find some of these articles helpful: 

Benefits of Hassle-Free Home Selling

The primary benefit of a hassle-free home selling process is obvious: little to no hassle. But what could that actually mean for you and your family? Here are some examples.

  • Faster Selling Timeline & Flexible Closing Schedule — You have more freedom to sell and close on your terms. Move out and move on when you want. 
  • No Need For a Realtor — Want to avoid commission fees and extended selling processes? Done. 
  • Minimal Paperwork — In some cases, all you’ll have to look at is one purchase agreement.
  • No Responsibility for Repairs — Save your time, energy, and money so you’re set up for success in your next move. 
  • Less Money Spent — No repairs, cleaning, staging, or realtor fees. Keep that money in your pocket. 

Take Advantage of All 3 Options By Selling Your House to Hometown Development

At Hometown Development, it’s our mission to make the home selling process as simple as possible for you. We’ll buy your house in as-is condition for a fair cash offer — no realtor, repairs, or staging required. Once you give us a call and we learn more about your home’s condition, we can often close in as little as a week. It’s a fast, hassle-free process that has delighted hundreds of West Michigan homeowners. You could be the next! 

For more information on our process and how we can help with your home, give us a call at (616) 379-3099 or contact us online.

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.

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.

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.

Licensed Contractor

Licensed Builder
Licensed Real Estate Agent

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

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