When it’s time for most homeowners to sell, they believe that they’ll simply list their home with a real estate agent. It seems a relatively cut-and-dry process: hire the agent, stage the home, show the house, accept the offer, and close. However, in reality, the traditional selling playbook often does not go according to plan. Whether it’s too complicated, too costly, or even impossible, for many sellers, traditional selling methods just don’t make sense.
Traditional selling methods make sense when sellers have time and money and a home they can present in decent condition to potential buyers. However, life does not always work out this way; other occasions may arise that leave conventional selling to go by the wayside. Job relocations, divorce and separation, financial emergencies, and properties that have been inherited (perhaps even in disrepair) can all complicate matters that make traditional sales unreasonable.
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When Time is Not on Your Side
Perhaps the biggest complication of going with a traditional sale comes from urgent situations. If you get a job transfer to an out-of-town location within thirty days, there’s no time to sell. If you’re in the military and need to relocate for deployment in a few short weeks or need to relocate a sick loved one out of state or find yourself experiencing financial difficulties and in bankruptcy court, conventional selling is not an option.
Traditional sales require an upfront investment of time. Finding an agent takes time; preparing a home for sale to market value includes professional photos and minor repairs. Before a house is even listed, it can take two weeks to a month to get ready to just put the property on the market. After it’s active, there could be weeks of waiting for buyers’ interest, followed by offers. These offers might require inspections and negotiations that could easily delay closings by an additional week or two.
When homeowners struggle against foreclosure proceedings, this is even more critical; foreclosure is rarely a process that conventional sellers have time to mitigate since they only have months (and sometimes just a few weeks!) to find alternate resources after foreclosure paperwork has started. Traditional sales cannot save someone from foreclosure when buyers need mortgages that take 30-45 days to finalize.
While researching how to sell a house fast in Houston or similar inquiries in major markets, you may find that cash buyers are great alternatives since they can close in less than 30 days; for conventional sellers who do not have months (and sometimes weeks) to spare, cash sales seem like a viable option.
When It’s Not Presentable
Not all homes are competitive or marketable in traditional sales. For properties that need serious renovations, with foundation issues, structural discrepancies, or no property value unless someone puts dollars into it first (which may or may not amount to a change in value worth the improvements), these are not homes that can be sold via conventional methods.
Most buyers want move-in ready homes; homes that need foundation work, new roofing, updated electrical systems and plumbing should be brought up to code without inevitable project costs that could exceed what someone even has available for repairs. Even if someone offers to take on these ‘project’ homes, their lenders may not be willing to work with them.
Homes with structural damage due to natural disasters or fires present even further challenges as insurance complications could either protect sellers or put them further behind the 8-ball with permitting needs for reconstruction or major renovations or letdowns when hidden concerns turn into expensive realities. Real estate agents shy away from listings with substantial damage because they know it’s nearly impossible to market something so broken down.
When Financial Conditions Are Unviable
Financial difficulties impede traditional selling options. When divorces occur, or when people file for bankruptcy or lose their jobs, they find themselves with no means to prepare a home for sale. Staging expenses can exceed hundreds if not thousands of dollars; minor repairs total thousands; any carrying costs cannot be absorbed by those already struggling financially.
Even when they get their homes on the market, traditional sales often consume 3-6 months in most markets at this equates to thousands of dollars in property taxes, maintenance fees, insurance rates and utility costs. For anyone looking for money escapes, these additional resources are overwhelming.
In addition, commission structures devour 5-7% of the sale price – plus closing costs and additional selling fees translate into thousands of dollars for any house above $300K without repairs or selling cost considerations. Those under financial distress can seldom afford this upfront in addition to losing money for final equity distributions.
When Economically Ineffective
Even when sellers have time and money readily available, market conditions make traditional sales ineffective. Homes that sell less than desirable neighborhoods need specific layouts and configurations that are not standard; homes sell in saturated markets without attention but active investors might find them profitable and appealing.
Transferable properties that require special knowledge due to zoning needs – commercial properties, uniquely designed and situated properties – may be better suited for investors than first-time homebuyers.
Furthermore, those economies can halt traditional efforts like recession downturns where buyers become frugal in making major investments and lenders retrench their qualification guidelines. During these downturns – for whatever reason – cash buyers become the active sellers while financed ones become sparse.
Finding Alternatives
When typical methods do not work, alternatives present themselves. Selling for cash buyers may be appropriate – however below market value – or auctioning off properties may get results quicker but without assessed minimums. Owner financing options might appeal to those who’ve fallen on hard times due to family concerns but ultimately need the sacrifice of being exposed personally throughout the process.
Ultimately alternatives do exist with speed vs price trade-offs. Cash for quick solutions might seem highly appealing; maximum price benefits may still require involvement (owner financing). Auctions generate competitive bidding but can’t promise minimum price gains.
The goal is to find what’s best for a situation once determined what’s not best without forcing square pegs into round holes. When speed takes precedence over price, it makes sense; when over price to maximize gains makes sense with available financial resources – great! Otherwise sellers who’ve exhausted all their options without conventional opportunities help boost buyer awareness of what’s best for them personally down the line.
Avoiding situations where conventional home selling methods exist helps sellers realize what’s best for them ahead of time instead of beating a dead horse with an inappropriate plan of action. Sometimes conventional systems do not work because of time frames; sometimes it makes sense because of conditions or finances – but regardless of individual preference – at least opening up unconventional possibilities allows better stability than failing conventional attempts.
