Has it been months since you put your home on the market and not a single person has made you an offer? Maybe you’ve spent more than a few hundred dollars on advertising, and still, no one is calling you for a real offer.
Either way, it’s looking like your home just isn’t selling. Below are a few options to consider in the meantime.
Postpone the Sale
Even the most attractive houses will have a hard time selling in tough market conditions. In a buyer’s market, the most practical thing to do is take your home off the market for a while, at least until inventory drops. Your house will have a better chance of getting interested buyers when there are fewer properties to choose from.
Another reason to postpone a sale is timing. If you’re selling during the holidays, for example, you may find it difficult to find buyers who don’t expect holiday bargains. And besides, who needs the stress of selling a home on top of the usual stresses that come with the holiday season?
Take Out a New Mortgage
If you need to sell the home to get cash for other expenses, you can always tap into your equity instead with a new mortgage (i.e. home equity loan), provided you can afford higher monthly payments, of course. If your mortgage is an adjustable rate mortgage and higher interest rates are impeding your ability to continue making monthly payments, you may be able to renegotiate with a loan modification plan with your mortgage lender or move to a fixed-rate mortgage at a lower rate.
But as with any major mortgage move, it’s important to consult with a financial adviser to discuss your situation. The last thing you want to do is talk to a real estate agent, who has conflicting interest in your financial affairs. Instead, talk to a real estate lawyer or tax accountant.
Consider Renting the Home
On the other hand, if you’re selling your home because you’re moving to another city/state, or perhaps to a larger house, consider renting your property instead. Even if the rent money you get isn’t enough to cover your monthly mortgage payments, shelling out a small amount of negative cash flow is better than spending thousands of dollars on a home no one is living in. You can also consider short-term renting on AirBnB and other similar sites.
Be sure to remember the following, however, when renting your property:
- Your homeowner insurance policy may not cover a house that’s empty for more than 30 days. Consider talking to your insurance agent about changing your policy to insure the property and not what inside.
- Some homeowner’s associations have rules against renting, or at the very least, short-term renting for AirBnB.
- Problematic tenants are another issue you need to prepare for. It pays to hire a real estate management firm to screen tenants for you and have maintenance people on hand for repairs/maintenance.
If none of these steps are practical for you, however, you can still sell your home to an investor like Blue Hen Homebuyers. As a home investor, we buy all kinds of homes, regardless of their age or condition. Call our offices today at 910-802-2222 to learn more about how we can help you.