The housing market may have recovered (for the most part) but in some markets, home values still haven’t regained their losses. If you bought at the wrong time or in the wrong place, you might find yourself underwater and overwhelmed by the fees that come standard along a home sale. Only you can decide if sticking it out is a better option than going through the stress of putting it on the market.
Here are your options:
Call a realtor – Do you have a suspicion that your home’s not worth much? Or worried about the fees that can pile up at a closing? If you’re not sure where you stand getting in touch with a realtor is the first step. Realtors may be surprisingly flexible, especially regarding the standard 6% listing commission.
Rent it out – Finding renters may seem like a hassle, but consider this : With the assistance of a reliable property management company, you can get your home into rental shape and score some great habitants that can put care into its maintenance. Not only does renting provide a direct stream of income, it also offers tax breaks that can go a long way toward helping you regain equity in your property.
Consider a limited service broker, with caution – While you won’t get the full brokerage experience, you will get your home on the multiple listing service which is better than just hanging a sign out front. Before electing to use a limited service broker, make sure you’ve fully evaluated your financial position. The added attention from a full-service broker can really help you sell your home more quickly and for more money.
Finance it yourself – If you’re struggling to find a buyer, you could consider offering a contract for deed, where you agree to finance the sale of your property. You might get a little more money for your home, but there are risks. You are sacrificing the protections provided by a traditional bank loan. But, this can help you find a buyer quickly and skip the mortgaged associated fees that banks typically charge. With a good buyer, you can come ahead.
Beg the bank – If you’re worried about foreclosure, you can talk to your bank about turning over the keys. This is called a deed in lieu of a foreclosure, and it means walking away and likely losing a chunk of money in equity. But if you truly want to wash your hands of the whole situation, this may be your best option. If you’ve already demonstrated that you can’t pay the mortgage, the bank may be willing to negotiate.
Fix it up – The best thing you can do to make your home attractive and more sellable are simple things. Adding new paint, replacing flooring and hiring a stager can add value to your home without taking a huge chunk out of your pocket. So, skip the chef’s kitchen and major changes, unless you’re hoping to persuade yourself to love your home.
Hold tight – Maybe you don’t need to sell your home immediately. Can you live with its quirks for a little longer? While the market can be a mystery, you can expect your home to appreciate 1% or 2% per year – so if you’re underwater by less than 10%, sitting might still be the best choice.
No matter what, don’t panic. If you want out of a home, there’s always a way that won’t leave you hanging.
