Most don’t realize how challenging it is to sell real estate. You spend money on minor repairs and marketing and wait for the right offer. However, as weeks turn into months, the costs of maintaining the property pile up, causing frustration and financial strain. So, what do you do? Do you wait a while longer and vamp up your marketing efforts? Do you lower your asking price and risk breaking even or losing money?
Unfortunately, the solution isn’t always straightforward, as multiple internal and external factors determine whether a property will sell or sit. On the bright side, there are practical solutions to help you get that hard-to-sell home sold. Continue reading for advice.
Reconsider Your Timing
Timing is everything when selling real estate. Although people are always looking for properties to rent, lease, or reside in, there are times when the demand is higher. For instance, most people start shopping for homes in late winter or early spring, hoping to close in the summer.
There are two main reasons for this; first, it’s much easier to move in favorable weather conditions. Second, buyers with children prefer to relocate between school years to make the transition more manageable. Putting your property on the market late between March and June will likely increase your chances of finding a buyer.
Short-Term Tenants
Waiting to relist your property comes with several financial responsibilities. As the owner, you must keep up with the mortgage, insurance, property taxes, security, and landscaping. These expenses can be overwhelming if you have a limited budget and other obligations. Therefore, you may want to consider a short-term lease agreement.
You can advertise the property for rent on a monthly, quarterly, bi-annual, or annual basis. Of course, you’ll want to do your due diligence to protect your property. That means appropriately screening tenants and drafting iron-clad leases. Ultimately, the rent can cover the property expenses, and you can relist when the lease is almost up.
Renovations
Your property may have “good bones” and be in an affluent or up-and-coming community, but if it’s not aesthetically pleasing, you may have difficulty getting offers. Perhaps the key to getting your hard-to-sell property off your hands is to invest in renovations. Although you’ll have to cover the upfront costs, the right renovations can increase the resale value and get you more money for your once hard-to-sell property.
As you decide which home upgrades would be ideal, consider the area and other properties for sale. For instance, people spend a lot of time outdoors in sunny California. So, investing in a luxury outdoor living space might attract more buyers. However, a newly renovated kitchen, bathroom, or open-concept living room would be ideal if you wish to improve a property’s aesthetics, functionality, and comfort.
Home Buying Companies
Home buying companies are a practical solution when you’re on a tight deadline or experiencing financial hardship. These agencies advertise “we buy houses Los Angeles” and offer homeowners market value rates for their hard-to-sell properties. The process is easy and saves you a lot of time and money on renovations, real estate agents, marketing, showings, and closing costs.
You provide details about your home, complete a free evaluation, and receive an offer. You can collect your payment in just a few days and leave your hard-to-sell property behind. Some private home buyers will even include a profit split agreement. It’s an agreement that if the property is sold for more than they projected, you’ll receive 50% of the profits. So, you get your purchase price upfront with the potential to earn a few extra dollars down the road.
Many factors can influence the success of selling real estate, from the state of the economy and mortgage rates to property conditions and the asking price. When your home sits on the market for months, it causes financial hardship and inconveniences in your everyday life. Before you consider selling at a loss or throwing in the towel, consider the practical solutions listed above. Each option can reduce expenses and get the hard-to-sell property off your hands.
