If you have a distressed property you want to sell, you may be wondering where to start. Whether the home has been yours for years or the result of a recent inheritance, understanding the options can help you make the right decision for your situation.
For many, a cash buyer offers a great alternative to a traditional sale, because it helps you sell a distressed house quickly and easily.
Why consider a cash buyer when selling a distressed property?
If you’re new to selling a distressed house, you may think a traditional real estate sale is the only option. But in fact, understanding the cash buyer solution is important.
Selling a home for cash to companies that buy distressed properties reduces the financial and physical burdens associated with getting it ready for a traditional sale. At Stress Free Homebuyer, we find that our clients choose a cash buyer option because they don’t have the ability or desire to spend time restoring a distressed property or navigating the complex financial negotiations that are often needed for short sales, foreclosures, etc. A cash buyer eliminates the homeowner’s liability (and headaches) from selling a distressed house.
What is a Distressed Property?
Before reviewing the best options to sell your house, let’s define “distressed property.” A distressed property can mean different things to different people. But traditionally, a distressed property is one that is facing foreclosure, has already been foreclosed on, or is in arrears or underwater financially due to missed payments, liens, etc. It can also be a house in dilapidated condition due to vacancy, years of delayed maintenance, vandalism, weather damage, and more.
While some Stress Free Homebuyer clients are occupying their distressed properties, often the home is vacant. It may also be in their care because of a recent inheritance. In these cases, managing the property can become even more difficult if they live out of state or haven’t seen the property recently and aren’t sure of its condition.
Common challenges faced by owners of distressed properties
So, what are the common challenges facing distressed property owners? The first is often property management. A vacant property or one in poor condition can invite theft, vandalism, and even squatters. If the owner isn’t local to the area, protecting the property from further damage can become difficult.
Another challenge can be financial. If the property is in pre-foreclosure or foreclosure, it may require a significant financial investment to clear the debts. This cost can compound when the property also requires financial investments for necessary repairs or remodels. Financial stress can impact real estate investors as much as private property owners, which is why some of our clients are flippers or other professionals who may need to sell if the costs of any given distressed property become too high.
Who are Cash Buyers?
So, who exactly are cash buyers or distressed home buyers, and how do you find a reputable one? Cash buyers are real estate investors who can pay you cash for your property. They’ll help you clear the title of any loans or liens upon transfer and pay the costs to restore the home.
Cash buyers are different from traditional buyers because they don’t require a mortgage, which means you can avoid things like inspections, the need to make repairs before selling, etc.
Although there can be many benefits to using distressed cash buyers, finding a reputable one is essential. At Stress Free Homebuyer, we have worked with hundreds of home and property owners in Long Island over the years. And because of that, we’ve built a reputation as a responsible cash buyer in our community. If you’re not in the Long Island area, be sure to review the past experience, reviews, and results of anyone you’re considering working with. If possible, get more than one quote before deciding which distressed property buyers make sense for you.
Benefits of Selling to Cash Buyers
There are many benefits to using a cash buyer for homes facing foreclosure, extensive damage, and other forms for distress. Below are just a few to consider:
Fast Sale Process
Because a cash buyer doesn’t have the same requirements of a conventional buyer, the sales process is typically much faster. In fact, at Stress Free Homebuyer, we can often complete a purchase in two weeks or less!
No Required Repairs or Remodels
A cash buyer will purchase your Long Island home “as-is” – without requiring repairs or remodels. This is a huge advantage to property owners who aren’t close to the home’s location to oversee construction projects or who don’t want to invest more money into a distressed property.
Avoiding Foreclosure
At Stress Free Homebuyer, we buy distressed property from owners who are motivated to sell quickly. That urgency is often because they are facing foreclosure from a financial institution and want to avoid the financial and emotional stress that may come with the foreclosure process. If you’re facing foreclosure, the right cash buyer can help you exit the property before that becomes a reality.
Sale Certainty
A traditional home or property sale requires inspections, repairs, financing, and other steps that can cause problems for distressed property owners. Alternatively, companies that buy distressed properties aren’t reliant on buyer financing, which means they can avoid those steps and reduce the risk of a deal falling through. If you need to move fast and avoid uncertainty, a cash buyer may be the best fit.
Financial Savings
Another benefit of distressed property buyers is the financial savings you’ll experience compared to traditional real estate sales. Those savings can include the repair costs we mentioned above but also things like traditional real estate commissions, and closing costs.
Steps to Selling a Distressed House to a Cash Buyer
If you’re searching for “distressed property buyers,” here are some simple steps you can take to make that process easier.
Step 1 – Find a reputable cash buyer or local real estate investor. We know there are dozens of road signs that say, “we buy distressed houses,” but an experienced professional can help you navigate the process smoothly – because they’ve done it hundreds of times.
At Stress Free Homebuyer, we walk you through every step to ensure the process is truly stress-free but not all cash buyers are the same. Before signing a contract, take the time to learn about their experience (and successes) in the local area, read reviews, and ask questions.
Step 2 – Get an offer for your home or property. While a cash buyer can make selling your property much easier than a traditional sale, it’s still important to get the appropriate value for your asset. Once you have an offer in writing, you can ensure it’s the right fit for the property’s location, condition, and your current situation.
Step 3 – Accept the offer only after you’ve had a chance to review it. In some areas (like Long Island), an attorney may be required to review your contract before you sign.
Step 4 – Once your contract has been signed, the next step is to close the deal and turn over the home or property to the cash buyer you chose! This step should be quick and easy, especially if you chose to work with the Stress Free Homebuyer team!
Selling distressed property is a big step, and at Stress Free Homebuyer, we understand that it often comes with considerations like out-of-state property owners who may be facing foreclosure (or pre-foreclosure) and homes in need of repair or remodeling. It’s why we take the time to help our clients navigate each step of the process so they can sell their homes quickly and with as little hassle as possible.
Frequently Asked Questions
Have questions about selling a distressed house or distressed property buyers? Below are some frequently asked questions and answers.
Can I sell a house in bad condition?
Yes, one of the benefits of distressed home buyers is that you don’t need to worry about repairs or remodels before selling. Traditional real estate sales often require those updates because the buyer must get a mortgage to complete the purchase (and those mortgage companies require the home to be in a certain condition). Companies that buy distressed properties typically pay with cash, which means you can sell your home in any condition!
How does a cash purchase work for a distressed home?
If you want to sell a distressed property, a cash purchase from a real estate investor may be the right solution. Distressed home buyers can provide an offer quickly and close in as little as two weeks. A cash buyer like Stress Free Homebuyer means you can also avoid things like an impending foreclosure and that you don’t need to invest more time or money into cleaning, repairing, or maintaining the property once you’re under contract.
What are the benefits of using a cash buyer to sell a distressed home?
One of the biggest benefits of using a cash buyer when selling a distressed property is the closing speed. Because companies that buy distressed properties use cash, they avoid things like inspections, mortgage company approvals, and more that take time in a traditional real estate transaction. That time can benefit the seller if they’re trying to avoid closing costs and realtor commissions or making additional investments in the property (like repairs or maintenance). It can also help avoid an impending foreclosure, if applicable.
