My House Has Not Sold Yet! Am I Stuck With A House I Can't Sell?
Updated: Oct 24, 2019
You put your house for sale but after months in the market it still hasn't sold. Now, it starting to feel like you are stuck with a house that you can't sell. Nothing can be more frustrating than trying to sell a house that has been on the market for too long. Can you still find a buyer that will pay market value for your home or is it too late for you?
Fortunately, you still have other options if your home isn’t selling. The options left might not be the most popular or might not be what you were expecting when you put your house for sale a few months ago. But chances are that if you are reading this article, you are not in the best position to be picky.
Consider Reducing The Price
The most important factor when selling your home is pricing it correctly. You have to pick a price that is on par with the current market value if you want to have a good chance at selling your property. However, if your house has been sitting in a hot market like California for more than 21 days without an offer there is a good chance that you over prized your property.
Lowering the price of your home, even if you think is below market value will gather more interest enough to get multiple offers. This could lead to driving the value up. Pricing is all about supply and demand.
Rent Your House
Rental properties are one of the best ways to deal with the financial pressures that come with paying the mortgage for a house that is not selling. It is possible that you might not be able to find renters willing to pay the full mortgage but in a lot of cases whatever amount is left on your monthly mortgage payment will be a lot more manageable than the full amount.
A lot of investors use this method as a way to create cash flow and to build equity. Renting your house will also open up other options like refinancing in the future where you can either lower the interest or you can cash out and use that money in other projects
Before deciding to rent your house, you must take into consideration that becoming a landlord requires a lot of work. However, there are also property management companies that will do this for a fee. It really depends on your current situation but renting your home can be a good way to make the best of a bad situation.
Rent to Own
The Rent to own agreement is a good way to attract another type of buyer that otherwise might not be able to qualify or is just on the fence about buying a home. They way this works is that you rent your house for a certain amount of time, with the option to buy it before the lease expires. This will give you the flexibility to wait for the market to change without using too much of your own your cash. This option also opens the door for the possibility of having the renter be responsible for certain repairs that would otherwise be the responsibility of the landlord in a traditional rental property which can save you money and headaches.
This sounds easier said than done, right? However, the most difficult part of selling a house is the wait. Sadly, the time it will take to sell your house is dictated by a lot of factors that are out of your control like the current market, & the time of the year. For instance, the average time for a house to sell in California is about 3 months compared to 8 months in Michigan. Also, houses are known to sell faster in the summer than they do in the winter. There is also the possibility that you hit the market on a slump in which case it might be to your benefit to wait.
Consider Getting another Mortgage
Considering getting another mortgage for your house that is not selling fast enough might be a great option if you are going through financial problems. However, if you decided to get a second mortgage on your house, you will have to do your research because this option comes with problems of its own.
An other, financial option available for home owners is getting a home equity credit line, but this is a short –term fix because you will have to pay it back with interest. An equity credit line should be used as a way to give you more time to sell your house. You should speak with a financial adviser before making a final decision.
Selling Your Home with a Short Sale
Selling your home with a short sale should only be used if you have no other options. A short sale is a property that is sold at a purchase price that is less than the amount owed by the current owner. If you find yourself in this position most likely is because you paid more than what your house is worth. Short Sales were very common back in 2008 when the real estate market crashed. However, you can still find a few for sale houses using the short sale method on the Multiple Listing Services.
There are downsides to short sales like selling your house for an amount that will not be enough to cover your mortgage. Not to mention that your credit score will take a hit and there may be tax ramifications. You should do your due diligence before making a decision.
Sell Your House to an Investor
Selling your house to an investor could be a solution that might work for you depending on your situation. Hiring a Realtor to sell your house will not always guarantee that your house will sell for a profit and is not always optimal for every home seller. For instance, there are a lot of complexities that go into getting a property ready for today’s real estate market that might not benefit an owner that is on foreclosure or has an older home that requires a lot of repairs.
It is becoming more common for homeowners to sell their homes to an investor. I am sure that you have seen the signs plastered all over the city saying “ We buy houses” or “We buy ugly houses.” These are investors trying to buy your house for cheap but they do offer some benefits in certain circumstances. For instance, if you need to sell your house fast, they are able to close in less than the normal 30 days. They will also buy your house without you having to fork out money to fix it, save you on commission and pay for the closing costs.