Why Must You Sell Your Property? For Cash Or Debt Relief?The need for cash or the need for debt relief. Normally these are the two financing choices you have. It is important that you clearly understand which of these is best for your situation.
Pre-foreclosureProbate Two Mortgages Rehab property No matter what the situation is, when real estate problems are involved, time is of the essence. There is a convenient form to answer these questions and more in our Seller-Profile. Be sure to complete and submit it for your free project evaluation. When you expect a lot of cash from the sale, it is commonly preferred to list with a full service Realtor or one of the flat fee MLS listing services. The professional services of a real estate agent should definitely be part of your "home selling team". If there is enough equity in the deal it will be money well spent when you choose well. Unfortunately, equity is not always equal to cash, and time can quickly become a critical factor. Depending on your situation it may become necessary for you to consider selling at a discount in order to make your deal more appealing. You must understand what the term “discount” means to your prospective buyer. To an investor the term “discount” means at least 30% less than appraised or market value. If the property is in need of repair, the costs of repairs increase the amount of the discount. They will also consider the amount of profit in the deal. An owner occupant may be happy with an amount substantially less than 30% or more. Some may be happy just to have someone take over their payments. It depends on the situation. Understanding the difference in the buyer’s expectations can be very helpful to you. As long as you are well informed about your choices, you can make well-informed decisions. Our system makes finding the right buyers much more strategic. Buyers that are interested in your property but need some help with financing can work very well with us. For example, a buyer that can afford the monthly payments but needs time to cover the down payment has good potential. Debt Relief If you have little or no equity in the property your expectations are quite different. For example, instead of looking for cash from the sale of the property, you should be looking for “debt relief”. There is no cash to look forward to. When you are in need of “debt relief”, your choices are much easier. You basically need to find a qualified buyer that can essentially take over your debt responsibility. There are many creative ways to help you solve your problem. Here is an example of a basic lease-purchase seller-financing transaction. You might also consider what you could be willing to do in return for a buyer that is willing to take over your debt responsibility. If you are willing to do “this” for me, in return I’m willing to do “that” for you. It’s “quid pro quo”. Insider Tip I think it’s important to put your mind at ease. We don’t encourage you to do anything that is immoral, unethical, or illegal. Legal counsel, to make certain everything is in order, will review all agreements between the seller and buyer. A need for debt relief also lends itself to alternatives that may be very appealing to your buyer. For example, you might be willing to offer certain credits for equity on improvements or repairs the buyer might be willing to do so that you don’t have to do them. Everything is negotiable. You have quite a bit of latitude with how the deal can be structured. This is a situation when “creative financing” can result in a win-win situation for you and your buyer. The point of this exercise is for you to determine whether your property will most effectively be sold for “cash” or for “terms”. Now, you know you are selling your property for cash or debt relief. Let’s take a look at how to establish your selling price.
NO BANKS NEEDED WHEN YOU SELL OR BUY!!
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