While most people have the ability to sell their home the traditional way, using a real estate agent or selling it on their own; there is a small percentage of home sellers that need alternative ways to sell their house because, well. . .life happens.
When life happens, not all house selling circumstances are created equal. It would be ideal if everyone had a “market ready” house to sell but that is not always the case. Sometimes there are issues that need to be resolved by a professional or cash home buyer.
There is a smaller group of sellers that needs to sell their house for cash, “as is”, and quickly. There can be many reasons for this. Sometimes there is an issue with the house that requires the homeowner to sell quickly and sometimes, unfortunately, the homeowner needs to sell for personal reasons. Either way this option can and does work out for both parties. Most good “We Buy Houses for Cash” companies figure out a way to make the solution a win/ win for both parties.
Who might need to sell their house to a We Buy Houses for Cash company?
Here are 16 special situations where you might need to sell your house to a “We Buy Houses for Cash” company:
- Selling Time Frame
- Out of Town Ownership
- Title Issues
- Multiple Owners
- Will Not Pass Inspections
- Job Transfer
- In Foreclosure
- Death in the Family
- Lost Job
- Burnt Out Landlord
- Fear of Showings
- Owe More Than the House Is Worth
Each of these situations inherently has its own set of obstacles and hardships to overcome. None of them has an exact blue print as to the best way to solve each issue, it does not hurt to familiarize yourself with the situations. We will break down all 16 situations and why it makes most sense to sell to a “We Buy Houses for Cash” home buyer.
1. Selling Time Frame
Need to sell your house fast? This is a the most common reason. The motives vary widely, but usually there is a personal situation that needs to be addressed.
Want to sell with a predetermined move out date? Some people like to know their house is sold before they start the process of packing up. Not knowing if and when your house is going to sell can be stressful and overwhelming.
Moving into a senior center or assisted living facility? Many of these facilities are very expensive to move into and live in. Some will apply for specific facilities, only to be turned down. This can cause a lot of stress due to the uncertainty. Having your house sold on your time frame removes all that stress.
When selling a house, the amount of repair needed can drastically affect the selling price and selling time frame. If a house needs a lot of work there is a much smaller pool of people willing and able to purchase that house and make those repairs.
Loan Qualifying with a house that needs repairs:
If the buyer who is looking to purchase your house is buying it with a loan, it can greatly affect the purchase price and closing process. Most loan providers require houses to be in a certain condition in order for them to provide the loan.
The buyer of your house wants to use a 30-year fixed rate mortgage loan. These loans are started at the local level but ultimately, they are going to be bundled with other 30-year mortgages and sold to Wall Street investors. This is very important because the property (house) has to fit into a specific set of parameters to meet the requirements of the Wall Street investor.
Or maybe the buyer is qualifying for an FHA or government loan. Again, the property has to fit into a specific set of parameters. These parameters are usually another layer on top of standard loan requirements.
The parameters we are referring to as “underwriting” guidelines. The person(s) applying as well as the house have to both fit into the underwriting guidelines set by either the Wall Street investor or the government loan program.
An “all cash” home buyer does not require all this scrutiny and red tape, they can purchase the house exactly as it sits with no repairs required.
Do you have to make repairs or not to sell on the “retail market”?
This will normally determine if you will go the “retail” route or if you are going to consider selling to a home buyer that pays cash.
If you are willing and able to make any necessary repairs to your house you can do this and list it on the retail market.
Even if you can afford to make the necessary repairs and you have the time to do so, you might need to run the numbers to see if it is worth it or not. Just because you have the funds and means to make all the repairs needed to sell on today’s market does not mean it financially makes sense for you to do so. You need to consider the time and effort as well as what it will actually net you in your pocket after everything is said and done.
Here are some factors (costs) to think about:
- Your time to complete or oversee the fixes
- Real estate agent fees when you list it with someone
- Holding cost (taxes, insurance, utilities, etc…) for the add months it might take to bring your house up to “retail” level
- And the negotiation factors once you have the contract
- Closing cost help that comes along with retail buyers of up to 3% which reduces your net proceeds (cash)
If you are clearly going to net much more then go the “retail” route, otherwise you might be better off financially and emotionally to sell to a “We Buy Houses for Cash” company in any condition and close when you want.
Common Repairs That Come Up (When selling on the retail market)
- Bad roofs
- Bad foundations
- Leaky basements
- Worn flooring such as carpet and hardwood finishes
- Bad electrical boxes and systems
- Bad plumbing stacks
- Cracked or foggy windows
- Pet damage to flooring and trim
- Landscaping issues like walls that need to be replaced
- Cracked or settled driveways and sidewalks
- Bad decks, outdoor stairs and railings
- Bad exterior painting or damaged siding
- Worn or bad countertops in the kitchen or baths
- Old water heaters
- Old and worn out HVAC systems (furnace and air conditioning units)
- Wall cracks
- Hazardous material such as asbestos, lead, radon, etc…
- Worn out doors with bad weather stripping
- Bad tile around tubs
- And on, and on. . .you get the idea.
Selling to an “as-is” buyer or professional cash home buyer can prevent the homeowner from having to address these issues in order to sell.
Updating can be a little different than full blown repairs. In order to get top dollar on the open market the house needs to be updated. If it has not been updated in the last 10-15 years it can look very outdated and affect the sale price.
This can be dated finishes on cabinets, counter tops, tubs, flooring, paint and even the overall floor plan.
Today, buyers are looking for open floor plans where you can see the family while you are fixing meals in the kitchen. Dining and living rooms are not as important as they once were. Color scheme are very different. Kitchens need to have upgraded counter tops and cabinets. Exteriors must be more maintenance free.
Today’s retail buyer is very picky and wants to move in and do ZERO repairs or updating.
Again, you will have to decide if you will “net” more proceeds if you go through the time and cost of updating everything to current market levels.
4. Out of Town Ownership
Owning a house while not living in the same area presents its own sets of challenges.
If you decide to sell the house, who is going to spruce it up?
What real estate agent are you going to use since you cannot be present to show the house?
If all the utilities are off because the house is vacant, what will it cost to have them turned on for showing and inspections?
What contractors and/or handymen are you going to use?
How easy is it for you to take time out of your life to deal with issues? You might have to spend days on the road traveling to be at the house for certain steps.
Or you can decide to contact a local cash home buyer and walk away with the proceeds with no hassle or time away from your family.
5. Title Issues
Most people do not know if they have title issues on their home. The biggest factor when you do have a title issue is the time frame to fix them. When you sell on the retail market to a buyer using financing, they will want to set the closing date based on the financial institution they are using. If there are delays, the buyer(s) can lose their funding or their interest rates can change for the worse and now they can no longer afford the property.
This can present a huge challenge because title issues have a time frame of their own. It will depend on what the issue is and how cooperative all parties are to fix the issues as to how long it might take to correct.
One of the most common issues is when a group of family members inherit a house. Everyone might have different ideas of what they want to do with the house.
There can be a newly discovered break in the “change of title” which can cause issues with transferring clear title to the new owner which can stall and delay closing while the situation is fixed by attorneys.
The list could go on and on. With a “We Buy Houses for Cash” company or cash home buyer they can close when it works to close. They can help solve the issues by working closely with a title company and the people that are involved to help expedite the solution. It might still take weeks or months but you know there is a buyer waiting at the end of the tunnel.
6. Multiple Owners
Having multiple owners doesn’t mean you will have an issue selling on the “retail” market. If everyone is in an agreement and all parties are around to sign documents it can run pretty smoothly. That is not always the case.
Having multiple owners can bring several different issues that can prevent a timely closing of your house.
It can be a hassle to coordinate closing with multiple owners, especially if not everyone lives in the same state, which is very common.
Cash house buying companies are used to handling properties with multiple owners in different states. Most have a great relationship with the title companies that are used to working through these issues.
7. Will Not Pass Inspections
The most common inspections are:
- Municipality inspection
- Occupancy inspection
- House inspection to see if it qualifies for the loan underwriting guidelines
- Home buyer’s third-party inspection – The buyer might hire their own inspector
- Well or Septic inspection
- Roof inspection
- Termite inspection
- Mold inspection (if an issue is noted in a more general inspection)
- Hazardous material inspection (if an issue is noted in a more general inspection)
- And the dreaded “Parent Inspection”
If the house will not pass inspections then one of two things has to happen. Either the owner must quickly figure out how to fix all the inspection items or they must hire out a company to take care of all the issues. Either way it will cost them time and money.
If making repairs in order to pass all the inspections is not an option in your situation then using a “We Buy Houses for Cash” company can be a great alternative. They literally will buy the house exactly as it sits in its current condition.
8. Job Transfer
Job transfers can be an exciting time for a home owner. Selling the house while moving to a different location for a job might take away from that excitement, but it should not.
There is a whole new life ready, but cutting all the old ties can take a long time to handle especially when there is a house involved.
In some rare cases, the company will take care of the house selling process so that you can focus on the new position. However, most companies do not provide this service. For the majority of people, this means they have to deal with the hassle of selling while trying to move and set up the next phase of their lives.
Depending on the condition of your house this might be a simple as hiring a real estate agent that will take care of everything for you.
But if your house needs repairs or updating it can be a very challenging to take care of this while living far away and starting a new job.
You can decide to just sell your house the hassle-free way by contacting a “We buy houses for cash” company. Then you can focus on the new job and not have the headaches of trying to handle issues over the phone or worse yet traveling back and forth.
9. In Foreclosure
If you are about to go into a foreclosure situation or you are currently in foreclosure, time is not going to be on your side. A normal home selling transaction can take 60-90 days from when you have a signed contract to actually closing on the house.
To stop a foreclosure that is in process you have to find a buyer that has all their ducks in a row and know what they are doing. Professional cash home buyers have experience in this arena and can act fast enough to prevent a foreclosure from happening and going on the seller’s credit history which can help in the future when they want to purchase another home.
In some cases, being able to sell your house before the foreclosure process can net the home owner some cash to put in their pocket instead of walking away with nothing if it goes through foreclose.
Only cash home buyers can move fast enough to make this possible in most states because the foreclosure window is less than a month long. Selling to a cash home buyer can not only stop the foreclosure it can save your credit score by avoiding the foreclosure process.
Depending on how well partners work together during a divorce when a house is involved, they might decide that a quick painless sale is more advantageous for both parties.
In the rare case everyone is acting civilly then selling on the retail market may be the best route, assuming the house is in great condition and is able to be shown at all hours of the day.
Remember that if you are going to go after top dollar then both parties will have to work together to get the house ready for sale.
In conclusion, divorces can be a very messy and stressful time. Selling to a cash, as-is home buyer can eliminate a lot of the stress by taking the home sale off the table without both parties having to work together in a heated situation for months.
11. Death in the Family
This is not easy for anyone; the death of a family member can be very emotional. Having to deal with everything a while grieving can be overwhelming. Many choose just to sell their house to a professional cash buyer for ease of transaction which can accommodate any time schedule.
The last thing someone wants to go through when dealing with a death, is selling a house. Dealing with personal belongings, showing the property, stirring up old emotions… This is usually one of the worst times in peoples lives. If they do not want to deal with this and want a fast-fair offer, a “Cash Home Buyer” is a great option.
If you decide to sell on the retail market but do not live in the area, it can be very difficult to coordinate everything needed to properly sell the house. Traveling to take care of all the contents and keeping the house up during this time is also another issue to deal with. You might have to fix or update the house for the retail market which can cost you thousands of dollars out of pocket plus all your time dealing with the project.
There might even be a situation were more than one person inherited the property. Now you have the added pressure of working together. Many times, it is much easier to just call a professional cash home buyer. These buyers understand the complexity of these situations and can help move everything along with communication between the title company, attorney(s), multiple selling partners, and themselves as buyers.
12. Lost Job
Losing a job is never easy. Hopefully a new job can be found quickly, if not, then long term financial issues must be considered.
When this happens, it can be hard to afford the cost of sprucing up the house and waiting several months before the closing.
It can be to your advantage to sell quickly to save your credit and find a new place to live. A cash buyer that can move fast might be a great solution.
13. Burnt Out Landlord
Being a landlord can be a great way to make some passive income, it also comes with its own set of headaches.
In an ideal world, the tenant pays on time and takes better care of the house than you would. In reality, this is not the case. If you don’t have great screening techniques you can be faced with a tenant that never pays, and likes to tear up everything up on their way out.
This can be an expensive life lesson.
Also, it can be hard to sell a property if the tenant is still living their and won’t let you show the property.
Professional cash home buyers are experienced in these types of situations, whereas; trying to list the property with a traditional real estate agent can be nearly impossible since you have limited access and the negative cash flow is draining your bank account.
14. Anxiety / Fear of House Showings
Many people are not comfortable with having strangers touring their house at all hours of the day and any day of the week. There are several reasons for this:
- Might have many collectibles
- Might have many pets that would be hard to move for a house showing.
- Might be disabled so it is very hard to leave your house for showings
- Might have a sleep schedule that changes so its hard to keep up when it is OK to show the house
- Might be fearful of strangers in your house which is common for elderly
With a professional cash home buyer, you only have to show the house once and you don’t have to worry about inspectors coming in later. They typically do their own inspections when they visit the property.
We have all seen the TV shows about hoarders. In reality, it is a serious situation if you want to sell your house or if you need to sell quickly and for a good price.
If your situation has gotten to the point where you can’t walk into rooms or you have to follow paths around the house then the retail market is out of question. People that buy house at top dollar on the retail market like to be able to envision themselves in the space and do complete inspections of the house and systems.
Selling your house to a “We Buy Houses for Cash” company might be the only option in such circumstances. Professional home buyers know how to figure what it will take to put the house on the market. What steps to take in the process and how to do inspections when it isn’t always possible to the normal buyer.
Not to mention that in the house’s current state it would be very hard to get a loan / mortgage on the home even if everything is on good working order just because the inspections ordered by the mortgage would not be able to be completed. A cash home buyer is the option.
16. Owe More Than the House Is Worth
Depending on the current housing market, some homeowner can owe more than the house is actually worth. This happens often if someone purchases a home at the peak of the housing market and then for whatever reason is forced to sell quickly in a market downturn.
Many homeowners in this situation do not have the funds to “buy” their way out of the house / mortgage. They just simple owe more than the current retail value of the house.
Other than staying in the house until the housing market turns the situation into a positive, you can try to negotiate with the lender to see if they will take less than what is owed on the loan / mortgage. This is called a “Short Sale”
Contrary to what the name sounds like the process is not short. It can take months if not a year or so to negotiate with a lender, but you have to have a sales contract to even start the process.
It would be very rare to find a traditional home buyer that would or could wait that long with all the uncertainty on the situation. You will have to work with a professional home buyer that can help you through the process, not care how long the negotiations takes with the lender, and be ready to close at a moment’s notice. Plus is there is no guarantee that a lender will “short” the amount owed even after spending months in negotiations.
Not ALL Houses Can Sell on The Retail Market
As you can see there are many situations and circumstances where a traditional home buyer might not be an option. Most traditional real estate agents will try to make it seem like they can sell anything but that just simply isn’t the case. Many circumstances require different strategies to sell.
If you are in such a situation or circumstance contact a “We Buy Houses for Cash” company or person in your local area near you to see if they can help you out. The easiest way to find one is to Google: “We Buy Houses for Cash” or “Cash Home Buyer”, etc… You should have many companies to choose from.
Local “We Buy Houses for Cash” Company in St Louis Metro Area
For a “We buy houses for cash” near you in the St Louis City, St Louis County, Jefferson County or St Charles County, FasterHouse is a locally owned company that has been buying homes for cash since 2002 with an A+ Rating with the Better Business Bureau (BBB) since 2006.
FasterHouse has purchased over 2,000 homes since starting out and has purchased homes in every situation you can think of including all the ones listed above and then some. They are professional cash home buyers and no one treats sellers with more respect and fairness!
FasterHouse has a 4.8 out of 5-star rating in Google and Facebook from home sellers they have worked with over the years.
FasterHouse’s approach is to help the home owner by keeping our word.
FasterHouse is known as The Trusted St. Louis Home Buyer
If you think all cash home buyer are the same. . .you would be wrong!