Published November 21, 2019
Options to Consider if Your Home Isn’t Selling
What should you do if your home isn't selling on the traditional market? One of the most discouraging feelings for home sellers is seeing their property sitting on the market for a long time.
To add insult to injury, it is tougher if the home doesn’t even attract a single offer. This, after all the money and effort they’ve put into, let alone the price reductions, can be devastating to a family. As the days go by, the property ends up becoming an expired listing.
If you find yourself in this situation, don’t worry, it’s not the end of the world yet. All is not lost, and here are some options to consider if your home isn’t selling.
Postpone the Sale
First, you may need to consider postponing the sale simply because it is not the best time to sell a property. If the market trend favors the buyer’s market, take your property off the selling block. Wait for a bit until there is a drop in the inventory. Once you see the number of available homes going down, the chances of selling your property increases.
Remember that timing is everything in real estate. If you are selling during the holidays, expect a stiffer competition. This is a time when home buyers are searching for bargains. If you engage in negotiations, you may lose money and fail to maximize the value of your property. Wait until it is spring time - especially if the other homes in the market are better than yours.
Get a New Mortgage
If your reason for selling your home is because you badly need money, you may want to consider taking out a home equity loan. Do so, but only if you can afford to shoulder a much higher monthly mortgage. Taking out a new mortgage is a sensible option if your existing loan comes with an adjustable rate feature. The same thing goes if a higher interest rate has made it tough for you to cover the monthly payments. When this happens, you can try renegotiating for a loan modification plan with your lender.
Before you do this, make sure to consult your trusted financial advisor. Avoid discussing these things with your real estate agent as he may have a vested interest behind helping you. Instead, go to your financial advisor or your real estate lawyer for some advice.
Rent Out Your Home
If you badly need to sell your house because you need to move to another city, you also have the option open your home for renting. This will help your cause even if the monthly rent you will be getting is not enough to cover the entire mortgage. At least the rent will give your wallet more breathing room. This is better than leaving your home sitting as you wait for a prospective buyer.
Interestingly, some home sellers are making substantial amounts by listing their properties for rent via Airbnb.
Short Sale Also Works
Determine if you owe more than what your house is actually worth. Consult with a real estate agent who has mastered the art of short selling. Considering a short sale may result in a renegotiation with your lender who will take less than the amount of your mortgage balance.
Before putting the property on short sale, there are a few considerations you need to understand. Consult with a real estate lawyer to discuss the possible consequences of a short sale. Keep in mind that not all sellers will qualify for a short sale and not all lenders will accept one.
Furthermore, a short sale will have an impact on your credit standing. In some cases, it may also keep you from purchasing another property for a certain period.