Skip to content

Blog

Seller’s Advantage has purchased thousands of houses and we can buy yours in just a few days. There is no obligation, so contact us today!

Review our blog for tips on selling your home fast!

  • This field is for validation purposes and should be left unchanged.

Selling A House As Is In California – A How To Guide

Many property sellers in California have been faced with deciding whether or not they will fix up a property before attempting to sell it. The answer to this question will be different for each seller and depend upon a variety of factors.

What Is An As-Is Home Sale

An as-is home sale refers to the physical aspects of a home in most cases. However, there are rare instances when the as-is portion of a property sale agreement will refer to the deed or title of the home being sold. When you sell a home ‘as-is,’ you are declaring there will be no negotiations pertaining to repairs or updates to the property by the owner. It is important to understand that selling a home as-is does not mean there is no responsibility on the part of the seller to disclose facts concerning the home that affect the value and ability of a potential buyer to live in the house.

Examples of facts about a home that must be disclosed are problems with the foundation, issues with the structure of the home, major plumbing problems, the presence of mold, and other environmental threats present in or around the home.

Selling a home as-is in California provides tangible benefits for both the seller and buyer of a property. It is the best alternative for both parties in many situations.

Do Homebuyers Want Fixer-Uppers

There are buyers in the market who feel there are deals to be found when buying homes in need of work. These homebuyers are looking to perform light cosmetic work on the home they purchase. They are not looking to perform major repairs on a home in most cases. There are companies that specialize in purchasing homes with major issues but this does not usually fit the profile of individual buyers.

Should The Owner Make Repairs To The Property

There are times when fixing a home before putting it up for sale will be the most profitable alternative. However, this option will sometimes require a great investment in time and money. You may also need a bit of experience to pull off this option so make sure you are able to meet the challenges before choosing to do so.

You may be able to check out the homes listed for sale in your area to give you a hint of what would need to be done to your home to receive the full retail value of the house. Look at the condition of the homes on the market and determine how long the owner has waited for a buyer. Also, compute the time and cost necessary to improve your home to the point it is comparable to competing homes in the market.

While it is not a complicated process to sell a home as-is in California, it can be a little tricky to determine if it is worth it to repair a home before selling. If you are selling a home that has an outdated kitchen or bathroom and only needs work in this single area, it can be worth the time and effort to update the space yourself. However, a home that needs upgrades across the board may present too large of an undertaking for many homeowners.

Steps To Receive Best Possible Offers For Homes Sold As-Is

There are a number of tips at the disposal of the seller of a home to determine the price they should command when selling a home in as-is condition.

Determine The After Repair Value Of The Home

The first step in the process of valuing your as-is property is to get an idea of what the home will be worth if you took the time to perform the needed repairs. You can use a website online that values properties to find this number quickly.

Estimate what updates and repairs will cost

Do not be intimidated regarding the process of estimating repairs. The number you come up with does not need to be exact. There are also guides both online and off that will help you estimate the cost of individual repairs.

Determine A Fair Price For The Home In As-Is Condition

This is perhaps the most difficult part of the process. It can be an inexact science to estimate the discount a buyer should expect for repairing a home themselves. If light repairs or updates are needed, you can list the home for sale online. If major repairs need to be done to the home, time and money may be saved by contacting a cash home buyer in California.

A point to remember is that a realtor will also turn to a cash home buyer if they are selling a home that needs extensive repairs. You can save the six percent commission that would be owed to the realtor by going straight to the cash home buyer yourself.

Determine If The Cost To Make Repairs Is Worth It

Now it is time to determine if the hassle it would be to repair or update the home yourself is worth it. You should remember to add costs like escrow fees, buyer concessions, inspections and appraisal costs, and any other expenses relating to the sale of the home.

In most areas, these added fees will account for about 8 to 12 percent of the home’s final sales price.

If you decide to provide repairs yourself, make sure the following issues are properly addressed:

  • Fix any holes in the walls or ceilings.
  • Make sure HVAC system and appliances are in working condition.
  • Replace worn or damaged carpets.
  • Fix leaking faucets.
  • Fix damaged windows.
  • Paint walls and doors where needed.
  • Make roof repairs.
  • Replace outdated ceiling fans and light fixtures.

Final Thoughts

It is not always simple to determine if an as-is property sale is in your best interest. However, if you take a moment to consider all pertinent issues, you will come up with the best decision to fit your particular situation.

 

How to Quickly Sell a House You Inherited

If you’ve just inherited a house, it can be a challenge to know what to do next. Not only do you have to carry out the will of the person that’s passed on, but you also have a potential liability on your hands: houses aren’t cheap to run or maintain.

Rather than sitting on a house for a long time, it’s usually best to sell it as fast as possible, grab the cash from the sale, and then use that to meet your expenses or put into a savings pot. But how do you sell a house quick?

Sell To A Home Buying Company

Home buying companies are businesses that are set up with the explicit mission to buy any house from someone wanting to sell. Those who inherit property often use house buying companies because they want to free up cash fast, rather than having to wait months (or sometimes years) for a regular home transaction to go through.

There are all kinds of things that slow the process of selling a home on the regular private market. The most significant barrier is the need to form a chain of buyers or sellers. If one person in the chain changes on their decision to buy, then it can hold up the entire process, forcing everyone to wait for a new buyer.

Cash home buying companies don’t rely on chains at all. Instead, you get what the home buyer thinks your inherited property is worth up front, saving you a lot of time and money.

Sell A Home, No Matter What The Condition

Some people are lucky and inherit properties in perfect condition. All too often, though, inherited properties have issues which need resolving before putting them up for sale on the private market.

For many, this means doing renovation work. But carrying out renovations is a drain on your finances: you’ll have to foot the bill before you receive a single penny for the sale of the property.

Home buying companies, however, aren’t fussy. These firms will buy a house no matter the condition, and give you cash up front according to what they think it’s worth. Even if the property needs extensive renovations, you still win: the home buying company just subtracts the cost of repairs from the price that they offer, meaning that you’re usually no worse off. Plus, you don’t have to deal with any of the hassles of arranging renovation work yourself, saving you time too.

 

Why Choose A Cash Buyer To Sell Your Inherited Property?

Home buying companies are top-rated right now. But why are so many people with inherited properties using them? Let’s take a look.

Allows You To Move On Quickly

Inheritance is a double-edged sword. On the one hand, you get a windfall payout, but on the other, somebody you love has died. Many people who inherit property usually want to make a sale, and get on with the process of grieving. If you’re bereaved, you don’t want to have to deal with legal issues, frustrating buyers, and estate agent fees: it’s just not worth it. When you’re in that emotional state, you want a quick, clinical sale, cash in your bank account, and the capacity to leave the past behind and focus on your future.

Get Cash Fast

Waiting to get money for a property you’ve inherited can be a stressful experience. You might be expecting a large amount of cash for something important – like a child’s education – but if you can’t access it, it’s no use. You need money so that you can convert the inherited assets into spending and investments that are useful to you.

With home buying services, you can often get cash paid into your account in as little as 48 hours. Cash buyers will often want to survey the inherited property to establish an estimated value. Then, they’ll make an offer in cash that you can either accept or decline – the choice is yours.

If you accept the offer, then the cash buyer will take care of many of the responsibilities, including the transfer of the deed. It takes the stress out of the whole process.

Avoid Selling Stress

People like to sell properties on the private market because they believe that they will get a better price (something that’s not always guaranteed). But selling on the open market is a stressful experience. Not only are there a multitude of costs – including estate agent fees – but buyers can pull out at the last minute, putting the brakes on the entire transaction.

Selling to a cash buyer is a stress-free experience. You know how much money you’ll get in advance, and there’s no chance of pulling out. You get the money paid into your account without any fuss or complications; the final amount depending on the condition of your home and the price of similar properties in the immediate area.

Avoid Insurance Issues And Running Costs

Once you’ve inherited a property, you become the legal owner, and all of the responsibility of the house falls on you, including the running costs. Not good. You don’t want to pay ongoing insurance costs, and you certainly don’t want responsibility for all of the possessions in the house. From your perspective, it’s best to move on, transfer the physical assets into cash, and get rid of all the risk.

Avoid Carrying Out Repairs

Finally, when somebody you love has passed on, the last thing you want to do is assess the state of their home and carry out repairs. Many people do this out of a sense of duty or need, but with a cash buyer, you don’t have to: you can sell their house in any condition.

Homes in poor condition deter regular buyers, prompting them to ask for significant discounts off the asking price. Home buying companies, however, are professionals who see the potential in every property and can offer a fair price, no matter what the condition. If you don’t want to carry out repair work, then a cash buyer is the way to go.

Benefits of Using ‘We Buy Houses’ Companies

  We Buy Houses Companies Offer Investors Benefits

Companies that Buy Homes
We Buy Houses

We’re betting that you have spotted the signs all over your town that have been stapled to telephone poles or staked into the ground. They say things like “We Buy Ugly Homes” or “We Buy Any House.” These signs are there to tell you that there are companies willing to purchase your house despite how old or run-down it is. These people are generally investors who keep an eye out for homes that they can buy and flip to make a profit. Many real estate investors are now using house flipping as a lucrative way to up their profits, quickly and easily.

When you are trying to sell your home, you may be interested in hearing what these companies have to say. Unfortunately, house flipping investors may not be the right solution for your particular situation. Before calling and inquiring after one, it is important to learn more about what they do.

Remember, the “we buy any home” company has one major goal in mind- buying homes for as cheaply as possible. Many target desperate homeowners who have been attempting to sell their house for months. They may offer 50% to 70% of how much the actual value of your home is depending on your eagerness to sell. House flipping means that the investor is out to purchase a home for much less than what it is valued at, repair it, and then sell it for a big profit. It is known as a “flip” because it is usually done quickly.

Before you sign away your home to one of these companies, read the pros and cons first.

What are the pros of selling your home to a local house buying company?

1. It’s a lot easier to sell your home

This is especially true when your home needs a lot of work done to it before you can actually make a profit off of it. By choosing a house flipping company you are avoiding the headache of trying to get a good price on a home that needs repairs. It also quickly frees you from owning the home, especially if you are desperate to sell.

2. There is only one decision to make

You only have to decide which house flipping company you will be selling to. You won’t have to worry about how you are going to make repairs, what real estate company to use, and who you want the house to be sold to. The house flipping company will give you an offer and that will be that if you decide to accept it. Since most of the companies pay cash, the closing process is also much easier.

3. You do not have to worry about getting the best real estate agent

With the influx of real estate agents, especially all over social media, finding the best one can be tricky. You don’t want to just hire someone because they have an ad on your local park bench! When you go with a house flipping company, you won’t need to worry about finding a reliable agent.

4. You won’t have to do the “sale by owner” offer

It’s not easy trying to sell your home without a real estate agent. Sure, you may save on the commission, but is the extra hassle worth it? In order to sell a home on your own, you will need to take your own excellent pictures, market your home online, be available for showings at times that may not be convenient to you, and deal with the actual financing part yourself. Selling your home to a flipping company avoids this whole ordeal.

5. Your home is likely to sell no matter what

If your home has deteriorated over the years, selling it yourself or through a real estate agent is going to be hard. You may even be living in a house that is nearly uninhabitable. A company that buys houses like Seller’s Advantage will not care about how poorly kept up your home is. They will likely offer you money for the house, even if it isn’t very much. They may even be after the lot the home is sitting on and not the house itself. If the house itself is in terrible shape, it is often more lucrative for the buyer to tear it down and rebuild.

8 Ways That an Agent-Brokered Home Sale Can Suddenly Go Downhill

In an ideal world, every real estate agent would be like a Fairy Godmother of home selling. Their industry expertise would take care of every hurdle, from repairs and staging to finding the perfect new family that is eager to buy your house. But in the real world, things aren’t always so easy or nice.

As someone motivated to sell a particular house, you are expected to trust your real estate agent completely. They are supposed to guide you through the complicated and obstacle-ridden path to a successful sale. They are supposed to fully grasp the logistical, legal, and marketing requirements to complete the sale and. And part of the reason you pay them a portion of the profit is because a real estate agent, supposedly, can save you from the headaches and setbacks of trying to handle the process on your own.

But it doesn’t always go as smoothly as we’d hope. Sometimes, your luck just turns and your agent did their level best to help. And sometimes the agent themselves fails to come through. But they still want their commission whether the sale was easier or harder with their help.

Today, we’re here to talk about some of the most common ways that a home sale can go downhill, even when a professional real estate agent is supposedly arranging everything for success.

Buyers Can’t Back Their Bid

By far the most common reason that a home sale falls through is inexperienced buyers combined with less-than-thorough real estate agents. Remember there are two agents involved in every sale, and technically both of them should ensure that a buyer is financially capable of completing a home purchase before entering the negotiation stage. But it often gets missed.

First-time buyers usually don’t fully understand how the finances work when buying a house, and will make a bid based on what they think their personal finances can afford. However, if they have not had this amount pre-qualified recently buy an available bank, then their bid means nothing. Some sellers see months wasted to negotiating with a buyer who, in the end, can’t get a bank to actually provide the mortgage to them. So the sale falls through and your back marketing for potential buyers again.

Competitive Bidding vs Bank Appraisal

But even if a bank has pre-qualified a home purchase within the buyer’s bid range, the bank might not actually approve the purchase of your house. Why? Because they only back mortgages for homes they feel are worth the buying amount. Before approving the mortgage, the bank will likely send an appraiser, someone who estimates what your house is really worth, not just what your buyer is willing to pay.

If the appraiser decides that the house is not worth the amount of the mortgage, the bank won’t feel that ‘owning’ the house is reasonable collateral for the amount of money they are putting up. And, in effect, the buyer will be denied a mortgage and your sale will fall through.

Buyers Back Out After the Inspection

A home bid with an inspection contingency is a lot like a job offer with a reference-check contingency. It’s like saying “I like everything about this house and will take up your time with negotiations and final-sale preparations. But if my inspector sees a spider, I’m out.”

In other words, inspection contingencies have a huge potential to waste your time. If you are going to sell through the usual channels, your real estate agent needs to make sure that buyers get their inspection before negotiations even start. If they fail to enact this step and inspection becomes a sale contingency in the contract, this is a great way to waste months and see a sale fall through when a known maintenance issue is ‘discovered’.

Simple Cold Feet

And some buyers just plain back out of a deal. This is often known as cold feet, or buyer’s remorse. Most home sale deals allow buyers to back out within the first week or two after the final papers are signed. This is to ensure that if there really are shady issues that are revealed or their finances suddenly take a turn for the worse, that buyers are not trapped in a purchase that will financially ruin them.

However, most of the time when buyers back out, the reason is just emotional. It turns out, after a month or more of negotiations and financial preparation, that they’re not really ready to commit. A good real estate agent can save you from this wishy-washy kind of sale failure, but it takes a real expert to predict when seemingly good buyers are going to bail at the last minute.

Home Sale Contingency

Another really serious problem with home sales, even ones that seem to be a sure thing, is the buyer’s home sale contingency. It’s not uncommon for people to plan on buying a house with the profits of the house they’re about to sell. This is a complicated financial and logistical maneuver and, in theory, it’s not a bad idea.

But no good real estate agent is going to put a home sale contingency into your selling contract. What this means is that no matter how motivated and ready the buyers are, they won’t be buying until their seller’s agent gets their home sold. So your entire process is now held up on someone else’s dubiously successful home sale. And you can’t even find new faster buyer because now you’re contractually bound to wait.

Negotiations Keep Falling Through

With a truly bad real estate agent (and there are a few out there) you may not even reach the contract phase for things to fall through at the last minute. Some agents can’t even get through the negotiation phase where everyone agrees on a price, terms, and a few reasonable contingencies.

You know you’re in a bad spot if your selling process keeps getting to the negotiation phase and falling through because you may never actually see closing documentation at all.

Property Title Complications

And even if you get to the closing paperwork with banks on board and everyone ready to sign, things can still go wrong! If your agent hasn’t done their job, there could be unknown liens or other restrictions on the property itself. Your agent should have either checked the title status for you or walked you through the process of doing it yourself

Title complications are especially common when you inherit a house that you didn’t buy and haven’t been managing financially. So it’s easy to officially own a house that also has liens on it that you had no idea about. Interestingly, buyers can also be stopped by this phase in the process. If they have outstanding debts or court orders that put liens on their finances and prevent the completion of the sale. Which their agent should have known about.

Real Estate Agent Wants a Bigger Cut

Finally, even if a sale goes all the way through, it might not be as profitable as you’ve been hoping for. Traditionally, your seller’s agent will want about 5% of the final selling price as their commission for helping. And if they really have facilitated a fast, profitable sale, most sellers don’t mind paying the cut. But 5% isn’t mandated by any agent or broker regulations, it’s just standard.

There is always a possibility that your agent will ask for even more than the traditional cut, even if they weren’t helpful and allowed obstacles to cause problems at every turn. You might even find that that bigger cut has been in their contract the entire time, unmentioned in small print, to catch you at exactly this moment.

Selling a house through the usual agent-run channels is not always the best choice for a homeowner eager to get a house off their hands. Especially if you don’t want to invest in repairing, repainting, and staging the house the way real estate agents usually recommend.

If you really just want to get an unwanted house sold with no delays, hassles, or unexpected fall-throughs then we have the answer for you. Here at Seller’s Advantage, we will be happy to buy that troublesome house quickly and for cash. No drama over mortgage approvals, no buyers with cold feet. And you won’t have to pay utilities or property tax for every month it sits on the market.

For a no-obligation inspection and consultation on the house you want to sell, contact us today! We’re ready to check out your house and give you a cash offer. No setbacks. No problem.

Is Selling a Home an Overwhelming Process for Homeowners?

When thinking about selling their home, homeowners may have this question in the back of their minds. With all the other responsibilities in life that need their attention, this is a valid question to ask before selling a home. In an effort to help, let’s discuss the process of selling a home and examine whether or not it’ll be an overwhelming experience for homeowners.

 

Variables and Perspectives Involved with Selling a Home

 

Essentially, the question is asking whether or not selling a home with traditional methods is too much of a hassle for homeowners. Ultimately, the answer depends on each homeowner’s real estate and mortgage experience, workload, location, situation, and general perspective of the process.

Whatever the case may be, selling a home is always more involved than selling a car or other high-priced items. Simply put, the large amounts of money being borrowed create more red tape with laws and regulations concerning the mortgage and real estate industries. This might make the process of selling a home more complicated and involved than a seller wants to deal with.

Here are some other factors that can make selling a home a hassle for homeowners:

 

    • they’ve never sold or bought a home before
    • their home selling/buying experience was a long time ago
    • their home selling/buying experience was in another state
    • their work is demanding and time-consuming
    • the home is in a distant location
    • the home needs extensive repairs and/or cleaning
    • the home is in a buyer’s market
    • they don’t have the upfront money to repair and market
    • home is being used as a rental
    • commission and fees can cost around 10% of the sale price

 

These are some of the variables that could make selling a home an overwhelming process for homeowners. The specific situation and perspective of each homeowner will ultimately determine whether selling a home with traditional methods is worth it for them or not.

 

How Long Does It Take to Sell a Home?

 

The National Association of Realtors says the average is three weeks, according to a CNN Money article, which explains:

 

“Low housing supply has pushed up home prices and created multiple offer situations and bidding wars throughout the country.”

 

While three weeks isn’t very long, this only accounts for the time from when a house is actually listed until it’s closed. Homeowners must also consider how long it takes to get a home ready to be listed. The amount of time this takes depends on:

 

    • repairs and upgrades
    • clean-up for curb appeal
    • home inspections
    • hiring a real-estate agent
    • marketing preparations
    • moving or putting items in storage
    • preparing to stage a home for walkthroughs and open houses
    • dealing with any tenants

 

Having an inspection done pre-listing isn’t required, yet is a good idea, especially, if the house is run-down or obviously in need of repairs. Having a pre-listing inspection done will cost a few hundred dollars, yet will prevent any bad surprises from surfacing when buyers have an inspection done before closing.

The time it takes to prepare a home for listing and sell it will depend on these factors, yet is also subject to problems that can occur during escrow and closing processes.

An article on The Balance gives us some examples:

 

No earnest money deposit.

…A bad home inspection.

…A low appraisal.

…Underwriting rejects the file.

 

The overall time it takes to sell a home with traditional methods can be from weeks to years; a safe estimate for most situations would be a few months. If homeowners don’t have the time nor the inclination to spend this time and effort selling their home, they should consider other options, such as selling as is for cash.

 

How Much Effort Does it Take to Sell a Home?

 

Time and effort are similar, yet the effort aspect is what will make the process of selling a home with traditional methods overwhelming. While the variables and perspectives of homeowners will differ, each must consider whether they’re willing and/or able to put the effort needed into selling their home.

A second article on The Balance called: “Important Steps in the Home Selling Process”, written on July 22, 2018 by Elizabeth Weintraub, lists the number of steps involved:

 

      1. Choosing a Listing Agent
      2. Find Out How Much Your Home Is Worth
      3. Get Your Home Ready for Sale
      4. Market Your Home
      5. Show Your Home
      6. Receive Purchase Offers and Negotiate
      7. Open Escrow and Order Title
      8. Schedule an Appraiser Appointment
      9. Cooperate With the Home Inspection
      10. Obtain Seller-Required Inspections [if contract requires]
      11. Delivery Seller Disclosures [lead-based paint, etc.]
      12. Negotiate Requests for Repair
      13. Ask the Buyer to Release Contingencies
      14. Sing the Title and Escrow Documents
      15. Close Escrow

 

Basically, there’s a lot of steps involved in the traditional home selling process, which may prove to be an overwhelming experience for homeowners not prepared or able to spend the time and effort needed to navigate and manage the complexities.

While real estate agents and broker companies will handle much of the details, homeowners will still be responsible for hiring contractors and inspectors, making decisions, communicating with agents, preparing the home for staging, etc. Homeowners could have a property management company handle these details, yet this would cost extra money they might not have or want to spend.

 

Conclusion

 

While it depends on the variables and perspectives of each situation and homeowner, selling a home with traditional methods, at the very least, requires a considerable amount of time and effort. This may include large amounts of upfront money for repairs, inspections, marketing, and upgrades as well.

If homeowners aren’t prepared or able to spend the time and effort necessary to sell their homes, the process could very well be an overwhelming experience they’d rather avoid. This is especially true if they have a demanding job and other pressing responsibilities in their lives. If this is the case, homeowners may want to look into alternative methods, such as selling their home as is for cash using a quality company with a good track record.

If interested in learning more about selling a home as is for cash please contact Seller’s Advantage online or call at 1-800-208-3243 to get a no-cost, no-obligation quote. Seller’s Advantage purchases homes in AS-IS condition and can give homeowners a cash offer in as little as 24 hours.

Problems that Can Kill Your Home Sale

Selling a home can be challenging. Though you might think that your home could sell right away, it doesn’t always work that way. Some sit on the market for months or even years before the right person comes along.

Unfortunately, a contract doesn’t necessarily mean that your home is going to sell. If there is a problem with the inspection, you are going to have to figure out what you are going to do. You might be willing to fix some problems but not all of them. You may not want to deal with any of it.

Here are some problems that can quickly stop your home from selling.

Water problems.

Most buyers will walk away from a home that has water problems. They don’t want to deal with flooding in the basement or a roof that is leaking.

Any water problem can lead to even more problems. You may have mold or rot in your home. Water can also destroy the materials that make up your home, leading to all sorts of problems.

Because water can cause damage in all areas of a home, most buyers will pull out on a deal really fast when they hear that you have water problems.

Structural issues.

Most buyers won’t touch a house where there are structural issues. Structural issues include problems with the foundation, support system, walls, and other things that hold a home up.

Not only will your buyers worry that they won’t be safe in their home, but they may also worry about it lasting for a long time. They don’t want to struggle to pay a mortgage for the next thirty years when they aren’t sure if it is going to last that long!

The cost to fix structural issues really depends on what is going on with your home. If your foundation and support system aren’t holding your home up right, the cost to fix it could be more than you ever imagined.

Bad or failed septic system.

Septic systems are a necessary part of a home. You can’t sell a home with a septic system that fails inspection unless you sell it to someone who has cash. Nobody will be able to get a loan for a home that has a bad septic system.

Septic systems are very expensive to fix, often costing around twenty thousand dollars (or more) for a brand new one. However, if you don’t take care of the problem, you are going to struggle to sell your home.

Poor water source.

Buyers expect (as they should) to be able to get safe drinking water at all times. They also expect to get as much as they need.

If your home has a well, it is important that it is working properly. It is also necessary to make sure that the water that comes out of your well is safe to drink.

Though some water issues aren’t too expensive to fix, if you have to replace your well, it can be very costly. If you don’t, you will struggle to find a buyer. Most loan officers won’t finance a home without a working well.

Infestation of pests.

Though most homes have problems with ants and other rodents occasionally, people aren’t going to want to buy a home that has an infestation of them.

Termites can do a lot of damage to a home so most people will walk away quickly if they notice termite wings. They can do major damage to the structure of your home.

Rodents, including mice, rats, and bats will also push buyers away. Most people don’t want to buy a home that has critters living in them due to different health concerns.

Bad smells.

If your house has a bad odor, you might push some buyers away. People don’t want to smell your dinner for last night so you should be careful what you cook prior to any visitations and open houses.

People also don’t like the smell of pets. If you have a smelly dog or cat, you might want to find somewhere else to keep him or her while you are trying to sell your home.

If you know that you are having an open house, you might want to bake some cookies or pies to give your home a nice smell. Some people try to use candles and air fresheners. However, this can also deter people who can’t handle smells. Others may wonder what you are trying to hide. They might pass just because they are afraid that you might be trying to hide mold or another stinky problem.

Sex offender who lives nearby.

More and more parents look at the sex offender list before they decide where they want to live. They don’t want their children anywhere near someone who is a convicted felon, especially one who was charged as a sexual offender.

Unfortnealy, there is nothing that you can do about this, and you just might lose out on some great buyers due to the neighborhood that you live in.

Two of the most common reasons that buyers walk away are water problems and structural issues. Water problems can cause mold, rot, and other problems. Structural issues often make people feel like they wouldn’t be safe in their new home. They may worry that your home wouldn’t stand up in a bad storm!

If your septic system fails inspection, you don’t have much choice in what you do. Nobody will be able to get a mortgage for a home without a septic system. You will either need to fix it or accept cash offers only.

Smells can also deter people. Make sure that you are careful with what you cook before any showings or open houses. If you have pets, you may want to keep them somewhere else to get rid of some of their smells. You also want to be careful if you use candles and air fresheners to freshen up your home. The smell may bother some people, and they can’t enjoy your home because it gives them a headache. If you have too many candles going, many people will worry that you are trying to hide something so they will walk away.

Contact us to sell your house fast! We pay cash for homes in any condition in as fast as seven days.

Landlord Drama: Why You Shouldn’t Rent your Home and Just Sell It

When it comes time to move into a new home, you may be trying to decide whether or not you want to sell it. You may really be considering renting it out so you can make a little extra income. You may have also inherited a house and, instead of selling it, you are thinking about renting it out.

However, being a landlord is not for everyone. It is not an easy job. It takes a lot of work, as well as time and patience to be a good landlord. In fact, there are times when it is much better to sell your home and walk away.

Here are some reasons why you shouldn’t rent your home (or an inherited one) and just sell it instead.

Many people love the freedom of walking away after their home is sold.

Owning a home is a significant debt. Owning two homes can feel crushing. Because of this, many people gladly sell their home to get away from all of the stress and debt that comes with home ownership.

They also love the feeling of money in their pocket (instead of another home to have to take care of).

Inheriting a home can be a lot of work, especially if it wasn’t something that you were expecting. It can actually feel like a burden instead of a blessing.

Because of this, many people prefer to sell the home and take their cash and walk away. If they use the money wisely, they can pay off some of their debt (maybe even their own home) and have some money in the bank for emergencies.

A large amount of money can go a long way to improving someone’s life.

Most people can’t afford to buy another home until their first one is sold.

The truth is that you are going to need a down payment (and a significant one) in order to buy your next home. Most people don’t have the option of owning two homes because they need the money. They have no choice but to sell their first home in order to have money to buy their next one!

Many people want out now because they are losing money.

The real estate market is constantly fluctuating. Though many people thought that buying a home is a good investment, there are times when holding onto it could be costing you money. If the market is high, you might want to get out before it drops any lower and you lose money on your investment.

You can’t make any money renting your home.

If you are in over your head in your mortgage, you might not be able to get enough with rent to actually cover the cost of your monthly mortgage payment. Your mortgage may be a lot more than typical rent in your area.

Add in other fees, like insurance, taxes, repairs, and other expenses, and you might end up paying your tenants to live in your home, without any of the benefits of owning a home. You have to make sure that it is worth the hassle of becoming a landlord.

Being a landlord can be a lot of work.

Not only are you going to have to make sure that your tenant is paying the bills and the rent, but you are also going to be in charge of maintaining your home. If something breaks, it is up to you to fix it (or find someone who can do the repairs). This can be quite stressful, and the job is not for everyone.

You might be moving away (or not close to the home that you inherited).

It can be hard to rent a home when you live elsewhere. With people who relocate, especially in the military, it can be hard to be a landlord when you are not there. If your inherited home is several hours away, the distance can make it hard to be a landlord.

If something breaks in the middle of the night (or actually any time), you are not going to be able just to drive over and take a look. Instead, you are going to have to rely on your tenants and the people you hire to fix these things.

Renting out your home is not for everyone. In fact, many people can’t afford to even think about this option. They need the money from the sale of their first home so that they can buy their new home. Even if they did try to rent it out, they might not be able to make enough money to even cover the monthly mortgage payment.

If you inherit a home, you might not be prepared to take care of two homes at once. It can feel like such a burden instead of the gift that it was. A cash offer might seem more appealing at this time. It can go a long way to improve your life.

One of the best reasons to sell your home is so that you don’t have to be a landlord. It can be stressful to have to maintain a home that you don’t live in. Things are going to break and tenants are going to mess your home up. In fact, the truth is that many people can’t handle it.

It is even harder when you don’t live nearby. If you are several states away, you can’t just drop everything to see what is going on when something breaks. You are going to have to trust your tenant and your repair people since you can’t see it for yourself.

Most people are much better off selling their home instead of trying to rent it out! Don’t have the time to clean the house up and put it on the market, only to wait weeks or months for it to sell? Don’t hesitate to contact us today. We can get the process started and our company will buy your home out of your hands in less time than you ever imagined. The possibilities could be endless with a cash offer!

4 Expensive Home Repairs Every Homeowner Must Face

Owning a home is a great way to build wealth and equity. Homeownership is a component of the American dream. However, like many investments, there are costs associated with it too. Some underestimate how much home upkeep truly costs. They are unprepared when a major repair comes their way. Suddenly, that home is more of a burden than a benefit. But this doesn’t have to be the case. The key is to not let those repairs take you by surprise.   Then you can decide if you want to take the time to make those repairs or,  sell your house and have cash in hand to buy something new.

1. A new roof:

Replacing your roof is a large cost for your home. However, it shouldn’t catch you off guard. A new roof should last between 20-25 years. How old is your home? When was the roof last replaced? This will help you create a timeline to budget your repairs. The costs of the replacement will vary. If you have the skills to replace the roof yourself the costs will be between $2,000 and $6,000. If you contract out the work, you will pay between $5,000-$12,000. The size of your home will determine how much you spend.

Don’t ignore the signs it’s time to replace or repair your roof:

Some will wait until the last minute to repair or replace their roof. They don’t have the money liquid to make such an expensive repair. They wait until there are leaks in the roof and their personal effects are being ruined by the water damage. It doesn’t have to be this way. Look at your roof. Are there missing shingles? Do you see weak areas on the roof? If so, it’s time to call a roofer before the damage gets worse.

Preventative maintenance:

Eventually, the best roofs must be replaced. But, with some preventative maintenance, you can get a long life out of your roof. Every 5-10 years have a professional come to inspect the roof. This way they can catch damage early before it becomes a huge repair.

2. HVAC:

Your HVAC can last nearly 20 years. Common repairs won’t break the bank either. The average cost for a furnace and air conditioner repair is around $300. Replacement units are a bigger investment. A new AC is a little over $5,000 and a new furnace is about $4,000.

HVAC preventative maintenance:

Once spring rolls around it’s a good idea to have the units inspected. A technician can do a tune-up and cleaning of the units. This will help you get the longest life out of your air conditioner and furnace.

3. Hot water heater:

Replacing a hot water heater is not as expensive as a roof or HVAC. But it will still set you back a bit. The telltale sign it has broken is that cold shower. However, keep your eye out for rust colored leaking and strange noises coming from the tank. These are signs of a problem. Repairs cost around $500 and a replacement tank is around $1,000. Tankless water heaters are also an option. They are more efficient than the standard hot water heater. Yet, they are also more expensive.

Don’t procrastinate with water heater repairs or replacement:

Don’t ignore the signs of a broken hot water heater. If it bursts or begins leaking you will have the water damage bill to pay too. You don’t want to add mold remediation to your list of home expenses.

Hot water heater preventative maintenance:

Every few months check the pressure valve to make sure it’s operating properly. When you are doing your home maintenance during the spring flush the hot water tank. This will get rid of particles and build up that could lead to a burst tank.

4. Foundation repairs:

Do you struggle to close your doors correctly? Do you see cracks in your walls? These could be signs of a foundation problem. If caught early, crack repairs run around $500. You don’t want to ignore these problems as they can turn into safety issues over time. Holding off on leak repairs can lead to mold. A major foundation replacement like stabilizing runs around $10,000-$12,000. A structural engineer can tell you what to do to resolve the issue. Steel beams may need to be installed to stabilize the house.

Foundation repairs and resale value:

Trying to sell a home with foundation problems can feel impossible. But, investing in the foundation can help your resale value. Having the home stabilized makes the home more appealing to buyers.

Budgeting for home repairs:

Your home repairs don’t have to break your bank. But it will require putting aside money each month for potential repairs. Many recommend the square foot rule for budgeting. You should put aside $1 per square foot of home per year for maintenance. If you own a 2,000 square foot home, you should put aside $2,000 per year for repairs and replacements. Another method you can use is the 1% rule. Put aside 1% of your home’s value per year in repairs. These are guidelines for your maintenance budget. But there are other factors to consider.

  • Age: If your home is new you probably aren’t expecting too many major repairs. If the home is 20-30 years old expect to be making some major repairs soon.
  • Inclement weather: If you live in a region that is susceptible to inclement weather your repair costs may differ. Heavy snow and extreme cold are taxing on a home. If you live along the coast you may be at risk for hurricane damage. The climate may allow pests to thrive too. If your area has termites consider pest control and prevention in your maintenance.
  • Flooding: If you are on a floodplain or at the bottom of a hill this will increase your maintenance costs. You may also be required to carry flood insurance on the home. This is a good question for your insurance agent.
  • Single family home, condo, or townhome: If you live in a single-family home you must pay for all maintenance. But if you live in a townhome or condo your HOA dues will cover several costs. You would be responsible for the interior repairs like electrical and plumbing. The HOA would cover exterior maintenance like roofing and foundation repairs.

Home ownership is a great opportunity to build equity. Yet, you don’t want to be drowning in home repair costs. Home ownership is meant to help you build wealth not bankrupt you. Have a budget, manage your preventative maintenance, and anticipate major repairs or replacements. This way your home will be a benefit instead of a burden.

Contact Seller’s Advantage online or call us at 1-800-208-3243 to get a no-cost, no-obligation quote on your home. We purchase homes in AS-IS condition and can give you a cash offer in as little as 24 hours.

So You Want to Fix and Flip a Property: 3 Things You Should Know

When exploring options for dealing with a fixer-upper home, owners will likely consider the fix and flip strategy. With popular reality television shows making the practice seem easy and the possibility of high profits motivating owners, it’s not hard to imagine how the fix and flip strategy seems like an enticing option.

While the fix and flip strategy can be profitable, the reality of the challenges and risks involved need to be carefully considered. Basically, the practice is harder than it looks on television and riskier than homeowners and investors may think. In an effort to help, let’s discuss 3 reasons to reconsider the fix and flip strategy.

 

1. Steep Learning Curve for First Time House Flippers:

 

Learning the ropes with fixing and flipping a home is much like that of starting a new career. The learning curve is steep and requires commitment, time, investment, and a desire to learn about real estate, contractors, law, marketing, building codes, taxes, and more.

Basically, this isn’t a strategy for those who want an easy way to deal with an existing home or an easy way to make money from an investment. Unless a person wants to make this strategy part of their real estate investment career and is willing to learn the ropes, the fix and flip strategy isn’t likely for them.

An article found on The Washington Post called: “Why you won’t get rich flipping homes”, written by Justin Pierce, explains how the fix and flip strategy is “Knowledge-intensive”:

 

“You have to know at least a little about a lot of different things to be able to manage the business. In my opinion, the most important knowledge required is real estate market specifics. You absolutely have to know how to value a home and what the buyers want, which includes popular designs and decor.

…it’s very tough to be successful in this business if you don’t have a good understanding of construction, which includes the dozens of specific trades required in building a home.

…you also need to know real estate and business law, insurance, contracting, negotiations, project management and more.”

 

2. Large Investment Needed with Unknown Return:

 

One of the biggest misconceptions about house flipping is the profit margins, at least for beginners. The truth is the fix and flip strategy requires a large investment and doesn’t guarantee a profit in the end. This is especially true with beginners who haven’t calculated the comprehensive expenses involved from start to finish.

The Washington Post article mentioned before explains more:

 

“Flipping a home is a costly endeavor. It involves the input of dozens of specialists, all of whom have to be paid. No one can do all of this alone. Even if you could, it probably wouldn’t be the best use of your time.

…There are a lot of people between my final paycheck and me.

…I have to pay my lenders and investors for the use of their money.

…I have to pay the agent who brings me a buyer.

…I also have to pay lawyers, contractors, material suppliers, inspectors and appraisers. And the tax man gets me about three to five different times for the same deal.”

 

The author, who’s also a licensed real estate agent, goes on to explain the slim profit margins involved with flipping houses:

 

“Sure, I might make a $40,000 profit on a project, but that is a really low return if I had to spend $600,000 on it.

…Despite what the gurus tell you, this is a very high-risk business, especially for those who are new. You have to rely on a lot of other people. The biggest risks are in valuing the property, determining the renovations and managing the construction.”

 

3. The Amount of Time and Effort Needed to Flip a Home:

 

The fix and flip strategy can work, yet owners must be willing to take the time and expend the effort necessary to make a decent profit. How much effort and time it takes to do this highly depends on the specific variables involved; often for beginners, the entire process takes longer and requires more effort than originally expected.

There are many hindering factors that can derail ideal fix and flip scenarios, such as:

 

    • legal issues
    • contractor issues
    • real estate market demand
    • inaccurate valuations
    • unexpected repairs
    • code issues

 

There are many nightmare fix and flip stories that validate this point; one such story is told by an experienced real estate investor and house flipper Mark Ferguson on his website Invest Four More in an article called: “My Five Worst House Flipping Experiences”:

 

“A couple of years ago, I bought a house that was in really bad condition…I bought the house on 4/28/14 and sold it on 2/26/16!”

…Time dragged on and on, and the work was not getting done. The contractor had a number of excuses, but then I made a huge mistake. I paid him a partial payment for the work he had done, and then my bookkeeper paid him again because I forgot to write ‘paid’ on the invoice. He got paid in full for the job before he was done. After that, he would almost never work, and I had to threaten to sue him multiple times to get anything done. In the end, he finished the work, but it took him almost a year!”

 

This is a good example of the type of delays and hindrances owners may face when flipping a house. This story was due to contractor issues, both with trying to find one and then trying to get the one hired to do the work. These aren’t the type of variables owners plan on dealing with, yet they can happen to even experienced house flippers.

 

Conclusion

 

While the fix and flip strategy can be profitable, owners and investors should carefully consider the challenges and risks involved. At the very least, they should expect it to be more difficult than popular reality television shows make it seem. In reality, the fix and flip strategy involves a steep learning curve, the ability to stay committed through delays and hindrances, and the willingness to risk a large investment for an unknown return.

Basically, the fix and flip strategy isn’t suited for everyone and every situation. For situations where homeowners want to sell quickly for cash as is, finding a reputable service to deal with is key. Dealing with a reputable service like Seller’s Advantage ensures homeowners get the best price in the quickest time frame.

If interested in learning more please contact Seller’s Advantage online or call us at 1-800-208-3243 to get a no-cost, no-obligation quote on your home. We purchase homes in AS-IS condition and can give you a cash offer in as little as 24 hours.

So You Want to Be a Landlord: Beware of These Four Issues First

Being a landlord isn’t as easy as it may seem on the periphery. Sure, with ideal tenants and no big surprises, renting a house can be a fairly easy way to make an income or pay off a mortgage, yet this ideal scenario isn’t generally the norm. In an effort to give potential landlords a balanced view, let’s examine the downside of being a landlord.

1. Dealing with Tenants

Let’s start off with likely the most difficult part of being a landlord, which is dealing with the tenants. Prospective landlords shouldn’t underestimate the difficulty of dealing with tenants in the course of being a landlord long-term.

This isn’t to say all tenants are going to be difficult, dishonest, unclean, destructive, etc., yet it does mean that dealing with tenants requires discernment, patience, resolve, commitment, and perhaps money (if using a rental agency instead of doing it alone).

Tenants aren’t just retail customers or employees who come and go from the store or workplace, rather landlords have to deal with them on a long-term basis. While this can be a rewarding experience, unless a landlord has excellent discernment and an ability to be upfront with people, renting to tenants can be a nightmare as well.

Of course, the type of house and neighborhood will make a difference in the type of tenants attracted to the rental, yet landlords should remember it takes time to get to know who people really are. For instance, tenants can look and sound great in person and on their applications, yet when an issue occurs (theft, flooded sink, neighbor’s dog barking, etc.) or their expectations aren’t met to their standards, their true colors will come through.

Basically, being a landlord involves dealing with tenants on a long-term basis, which means getting to know exactly who they are deep down inside. This isn’t always easy to discern and can become a real nightmare for landlords when unexpected circumstances reveal contentious personalities.

2. Management Aspects of Being a Landlord

The management aspects of being a landlord involve dealing with tenants, yet also so much more. Essentially, being a landlord (even of one house) is like being a business owner; some business aspects can be outsourced to a property management company, yet this is another monthly expense to calculate.

Potential landlords should ask themselves:

    • Do I want to master the IRS Schedule E for landlords?
    • Do I want to incur the responsibility for resolving evictions, late fees, damages by tenants, and other potential liabilities?
    • Do I want to accomplish the extra bookkeeping or pay someone else to manage it – including a CPA at tax time?

 

While there may be profit at the end of all the taxable and non-taxable expenses, potential landlords must consider the time and effort it takes to manage the manifold business aspects involved. They also must consider the potential liability involved when renting their houses to relatively unknown people.

While some landlords may be fortunate enough to have great long-term tenants, most landlords deal with many tenants over the years. Considering the average credit score for renters is 650 and in 66% of housing markets, buying is more affordable than renting (stats from mysmartmove.com), great long-term tenants are not easy to come by.

3. Time and Expenses of Repairs and Maintenance

Homeowners already understand how much maintenance and repair houses need every year. As a landlord, add to these duties the tasks of coordinating repairs with tenants and meeting their variable expectations. Then consider that the time spent doing repairs and maintenance isn’t tax deductible; the cost of the repairs is tax deductible, but if done by the landlord themselves, the labor isn’t.

Paying all the repair and maintenance expenses and spending the time to coordinate, hire, or DIY, are big downsides to being a landlord, especially with an older house. Even if most of the expenses can be deducted at tax time, they’ll require landlords to constantly spend money upfront.

Another downside to renting a home is most tenants won’t treat the home as if it was their own; in other words, they may neglect and treat the home harshly, which may lead to more repairs and expenses that wouldn’t normally occur. And if any late payment fees, evictions, or other issues occur, tenants may thrash and damage the home out of anger and malice – creating more repairs and expenses.

4. Dealing with Vacant Rentals

The rental market may be good now, but even this doesn’t mean landlords won’t suffer from vacancy between tenants. Finding the right tenants takes time, as does the repairs and maintenance done between tenants, and taking the first applicant out of desperation or expediency is a gamble not worth taking.

The point is, landlords have to deal with vacant rentals when tenants leave or are evicted. If the latter occurs, landlords may have to pay legal fees and wait out the legal process of evicting someone who won’t leave – one nightmare story details a man who lived free during the eviction process for 274 days!

Hey, “life happens” is the old adage that applies here; applicants may have intentions of staying long-term, yet with job, marriage, and other life changes occurring, they very well may have to move much earlier than expected.

Landlords must deal with these unexpected situations and go through the application process as many times as necessary; in the meantime, rent isn’t coming in and expenses are going out. With enough of these unexpected departures in a short period of time, landlords may have a hard time just breaking even for the year.

What’s the Alternative?

Examining the downside of being a landlord may have some homeowners looking for an alternative to being one. And if being a landlord was an alternative to dealing with the traditional way of selling a home, they may be discouraged all-together!

Don’t worry, there’s good news; the alternative to both is to use Seller’s Advantage to sell the house quickly and without the hassles. Seller’s Advantage has purchased thousands of houses, has an A+ rating with the Better Business Bureau, and has many positive reviews online from past customers.

For homeowners wanting to sell quickly and for the best cash price possible, Seller’s Advantage is the best alternative around. If interested, contact Seller’s Advantage online or call us at 1-800-208-3243 to get a no-cost, no-obligation quote. We purchase homes in AS-IS condition and can give homeowners a cash offer in as little as 24 hours.

Don't leave!

Please call us at 1-800-208-3243 to speak with us immediately or finish your form to receive an offer within 24 hours!

Seller’s Advantage is a BBB Accredited Business with an A+ Rating and has been in business for over 12 years.  We've purchased more than 10,000 properties from homeowners just like you!

OK, let's finish!