2020 saw a worldwide event that affected billions of people in every way imaginable. The coronavirus pandemic saw people lose loved ones, businesses fail, and soaring unemployment rates.
Many industries such as hospitality, non-food retail, and airlines, suffered terribly and hundreds of thousands of people were furloughed or lost their jobs completely.
The effect of the pandemic on the average person was felt financially. Work dried up for sole traders, or social restrictions made it impossible to continue working. Businesses closed their doors, and the staff was made redundant.
Of course, the effect of this was that bank balances ran dry, debts rose, and families struggled. As everyone moves through 2021, it can only be hoped that a certain type of normality will return sooner rather than later, however, for many, times have already become too tough to continue without some form of cash injection.
For many, that means selling their home.
Why would you need to sell your home?
The simplest reason someone wants to sell property is to raise finances. For most people, their home is the biggest purchase they have ever made and represents their biggest hard asset. It is this phrase, hard asset, that is the problem.
If someone wants to sell their home then it is likely that they either want to move and purchase a new home, they have inherited it and don’t want it, or they need the cash.
Having a hard asset is not the same as a liquid asset and to someone who needs cash quickly, this is a problem.
What is the obstacle to having a non-liquid asset?
Liquid assets would include bonds, stocks, and cash. When someone needs money in a hurry, liquid assets are most desirable. Even stock in a store can be considered a liquid asset as it has value and can be sold quickly.
Houses are not considered liquid assets despite their value. They are considered non-liquid assets due to the time it can take for the value to be realized from a sale. When someone needs to raise cash fast, a house sale might not normally be considered the best option. However, there are ways to sell houses quickly.
Ways to sell your house
There are many options for selling houses but doing so quickly will reduce those options.
The pandemic reduced the number of homes sold during the first part of 2020, and although the market improved at the end of the year, it could still take months to make a sale.
Options for selling a house include realtors, auctions, private listings, property investors, and even raffles.
Normally, the route someone would take would be to look for a real estate agent who is a member of the National Realtors Association, and once happy with your choice, they would start to market your home.
This is the tried and tested, most proven route to selling a home and millions of Americans have happily sold their houses and condos this way. However, it is not always the best route to take.
Why should you avoid a realtor if you want a quick sale?
The majority of realtors do a fantastic job of marketing and selling houses. When you consider how much commission realtors make it is not surprising. Selling your home this way may mean you have to hand over 5% – 6% of your sale price to the agent.
Generally, this isn’t an issue for most people as they prefer to be guided through the selling process and have the marketing and viewing side handled for them.
The problem lies in the length of time it takes to make a sale. Someone who has found themselves unemployed due to the pandemic or any other reason, may not have months to wait for a sale to be completed. Even worse, you could be weeks into the sale of your house only for it to collapse due to the buyer’s finances not being approved.
Can renovations help to speed up the realtor process?
There are ways that you can improve your chances of a quicker sale, and renovations are one of them. You would need to understand the best home renovations to sell a house quickly before you start investing money.
Normally, the fascia and garden are the best places to start. A potential buyer will often look at a house from their car and assess how it looks. This is known as curb appeal and is something that experienced house sellers will understand as an important part of the sale.
The problem with making renovations to speed up your house sale is that most people looking for quick sales generally need to make money, not spend it.
A quick house sale during the pandemic sounds like there is a need for a cash injection. In this instance, you will need to look at your other options.
Selling your home quickly with no changes to it
There are four options still available to you for selling your home. How effective or useful they are to you will depend on your requirements and possibly on the condition of your home.
The four options available to you are auctions, raffles, private sales, and property investors.
If you want an effective way to sell a house as is then you are left with auctions and property investors.
A raffle can take a very long time to generate sales and if your home needs renovations then it might not be a very appealing ‘sell’.
Private sales listings do not come with any guarantee of a sale, and again, you might need to carry out repairs to make the house appealing to purchasers.
This is not the case with auctions and property investors but the problem with auctioning the home is that you may not make a sale, you may receive a low price, and you will have to pay several fees which will reduce your cash further.
Selling to a property investor or cash buyer
There are a number of companies that purchase property for cash and deliver a stress-free experience while doing so. These investment companies provide many advantages to someone who needs to sell a home quickly.
They will buy homes in disrepair so there is no need to make renovations. This type of company will typically make a genuine offer within a day. They can often complete the sale as quickly as one week too. Other advantages are that there are no closing fees to pay by the seller and that they usually deal locally. For instance, if you were asking how to sell my house fast in Austin, Texas then you could Google for a company in that area.
Like everything, there is a downside. The main one being that you will be offered a lower price than you would receive by selling through a realtor. However, offset this against the realtor’s commission, legal fees, and the time it would take to sell and this method may suit you more.
Selling a house quickly is difficult at the best of times, let alone when there is a pandemic affecting everyone. House auctions can offer a quick way to offload an unwanted property, but the only way to receive a guaranteed offer is through a property investor. Make sure to check the company’s credentials and reviews, find a local firm near you in Austin, Texas for example, and then you may be on the way to selling your home quicker than you thought.