Factors To Consider When Selling A Distressed Property.
We all want to sell our house for the highest and best offer possible but when your property is in poor condition that can be a challenge. So, what exactly do we need to consider if we are in this situation? Well, let’s start out by looking at the current market. Some parts of Detroit are going through a transitional phase and in some areas it’s happening faster than others. Other neighborhoods are still riddled with boarded up houses and burn-outs and this is keeping the overall property values very low. In other words location is a major factor when selling a distressed property in Detroit Michigan. Another huge selling point is the number of bedrooms and bathrooms. Anything less than three bedrooms can be very tough to sell. Is your house brick or wood frame? Brick homes in Detroit tend to sell much quicker than frame! Finally the condition of the property is the biggest of all to consider.
- How old is the roof?
- Will the house need to be gutted?
- Are there mold issues?
- Is the basement flooded?
- Are there broken windows or doors?
- Did your last tenants destroy the property?
- Is the garage intact?
- Is the electrical and plumbing intact?
- Is the furnace missing?
Repairs On An Older House Can Be Very Expensive.
You must consider the fact that it’s quite costly to renovate an older home in Detroit especially if it was built prior to 1940. Many of these houses require custom windows and doors which means you can’t just walk into Home Depot and buy them. Also making sure that the repairs are done within compliance with city code is a must!
How To Screen The Offers.
Let’s assume you’re at the point where you are starting to get offers from potential home buyers and you are trying to determine who to go with. The first thing you want to know is if they are offering to pay all cash. A cash offer has a much bigger chance of actually closing. If someone is obtaining a loan and has to wait for an approval it can make the offer pretty weak because they might not get approved. In this case if you have a higher offer from a buyer who’s getting a loan and another cash offer but the cash offer is lower, the cash deal is potentially the better offer. A cash offer typically doesn’t require many hoops to jump through and is usually pretty straight forward. Another thing to look at is how fast is the buyer looking to close the deal? In Detroit most cash deals can be closed within two to four weeks depending on the situation. If there are title issues the process may take a little longer but overall it is usually finished and settled quickly when you are dealing with professionals. If you’d like further information on this topic go here.