Noteworthy Alternatives to a Traditional Listing
Selling your house can be a daunting task. The process of listing isn’t always as simple as is seems. There are repairs to make, cleaning to maintain, open houses and showings, bills and other hurdles to clear … all while you are trying to move!
There are some noteworthy alternatives to a tradition sales listing that can work well in some situations. You may want to consider some of them when you’re ready to sell your Omaha property.
Setting up your house in a “rent-to-own” structure is a great way to get the property in front of more potential buyers. The term rent-to-own simply means that the renter has a desire to own the home, and they agree to rent the home for a certain amount of time, and then they have the option to buy it before their lease runs out. This term can also be referred to as lease-to-own or a lease option. This type of agreement is a good way to get full retail value for the home, sometimes even more. There are MANY people who would love to buy a home, but they fail to qualify for a traditional mortgage because of a minor blemish on their credit, or they’re short on a down payment, or they have another mortgage on a different property and can’t qualify for this one.
These are usually great people, who are often willing to pay a higher than average rent in exchange for the opportunity for home ownership. If you find a buyer who would like to rent-to-own, the process begins with the buyer paying you an agreed upon “lump-sum payment” up-front. This acts as a deposit should they fail to hold up their end of the deal. The buyer will also pay you rent, with a portion of the rent going toward their down-payment on the property.
At the end of the agreed upon lease term, the buyer must purchase the home outright. There are many ways you can set this up. There are obligations and benefits for both the seller and buyer. Do some good research and choose the terms that work for you!
Hold It As a Rental Property for Passive Income
Have you ever pictured yourself as a landlord? In some situations, it can be a lot of work. While other times, with careful screening, you can find great, low-maintenance tenants. Many people who aren’t able to sell their home in a traditional way, may opt to keep the home and rent it out. This is a fantastic way to earn passive income!
Being a landlord isn’t easy, but if you take it seriously and strive to be the best you can be, it can help you build long-term wealth. However, if being a landlord seems a little overwhelming or you just can’t see yourself in that role, consider hiring a property management company to help you with routine maintenance, tenant screening, and rent collection. Property management firms typically charge about 10% of the monthly rental income, but speaking from experience, they can be well worth it.
Sell to a Direct Buyer or Investor
When you choose to sell your home directly to a professional home buyer, you will likely get an offer that’s below retail, but that may be surprisingly close to what you’d actually pocket if you did sell retail. How? you might ask? Selling to a direct home buyer means you won’t have all the traditional listing costs as when using an agent. You won’t need to pay a listing agent commission, nor will you need to make repairs or updates to your home, or even clean the place out if you choose not to! Direct home buyers usually have people to help them do this and they know how to make things easy for sellers who have busy lives and who don’t have time to tackle all that’s usually involved when selling a home. With a direct sale to an investor, the closing process typically runs more quickly, too, because they often have financing lined up in advance. Direct buyers don’t need to wait for financing approval like a typical retail buyer will.
When you sell your house directly, do be sure to read the fine print of the purchase agreement, and confirm that the terms are agreeable to you.
Auction Services are Becoming More Popular
Some people are turning to auction services to sell their Omaha homes. There are some interesting pros and cons to selling your home this way, but like the other alternative methods listed above, the sale can happen more quickly and easily than through a traditional home listing. Choose a company who will generate buzz about your property using excellent marketing techniques. The goal with an auction is to draw attention to your home and encourage buyers to outbid one another!
An auction is especially great for people who want or need to want to know what the definitive sales date will be for their property.
With any and all methods for selling a home, it’s wise to factor in your mortgage payment, homeowners insurance, property taxes, repairs and general depreciation, and other “holding expenses” that you’ll incur as you wait to sell a home. In some cases, it’s totally fine to hold on to the home for a couple of months going the traditional listing route, but in other cases, time is of the essence and you want to sell sooner rather than later. It really depends upon your situation. But we hope this short piece gave you a little new information to think about when it comes to selling a home.