For those who need to know how to sell a distressed property in Kansas City, we’ll cover the options you have available. Traditional listings for distressed properties are not suggested as they don’t attract most buyers, take far too long, and are too costly for most owners of a distressed property. Most buyers looking at traditional listings are not experienced in renovating homes. You might accept their inflated offer and go under contract with them only to later be asked to make repairs or lower your price. Also, these buyer’s lenders may not even approve the loan after an appraisal is done due to the amount of work that needs to be done and/or the buyer’s level of knowledge/expertise when it comes to fixing up homes. Time and money can be lost when you’re dealing with inexperienced buyers, which is why selling a distressed property the traditional route to a newer property owner is not advised.
Life can bring unexpected changes that leave you searching for solutions. Homes can fall into states of disrepair that are far beyond the owner’s capacity to handle. There could have been a death, divorce, illness, or job loss, leading to lost income or a forced relocation at play.
Let’s dive into some of the options to sell a distressed property in Kansas City
Professional Buyers
There are always two sides to everything and this holds true when considering how to sell a distressed property in Kansas City. Let’s explore using the service of a professional cash buyer when you’re selling. Due to the nature of cash sales, you’ll benefit time-wise because of the ability to perform extremely quick closings.
Additionally, the sale is as-is and there won’t be any downtime waiting for the right buyer. Nor will you be required to make the investment of your precious time and money in repairs. There are no financing contingencies as well so an appraisal does not need to be done or paid for. Another advantage is you’re not carrying any legal risk, as with selling on your own and since most professional buyers pay all of the closing costs, you’ll save even more.
Now, because the professional buyer is taking all of the risks when buying a distressed property, and offering the advantages of cash sales, their offers are below the prices being realized in the current real estate market. A word to the wise, do your research on who you’re dealing with. Regrettably, there are unscrupulous buyers who may try to take advantage of time or financial constraints they learn you’re up against. If selling your home to a professional cash buyer fast for cash is the route you want to take, then check out our process in purchasing homes from homeowners like you!
Do-It-Yourself
Selling a distressed property in Kansas City on your own may sound appealing because you’re in charge. Additionally, you won’t be responsible for an agent or auctioneer fees, which can negatively impact your bottom line on the sale. If you’re knowledgeable on marketing and all of the legalities involved, while you may need to invest a great deal of time, you can save money by handling everything yourself.
Conversely, inexperienced in marketing and the legal details, selling on their own often leads owners to failure. Not only don’t they realize the highest profit on their property through their errors, but they could also end up in a legal nightmare with no way out. One recommendation we always suggest is to finalize the transaction and close escrow with a reputable title company or attorney. The title company or attorney will ensure that the correct documents are in place and that the funds are legit in order to exchange property for funds.
Professional Auctioneers
Property auctions rarely imitate art, where fantastic prices are realized in movies and on television. Avoiding the headaches of showing your property is one of the favorable aspects of auctions. Additionally, these properties close within 30 to 40 days and sell as-is, so you won’t need to continue to pour time and money into repairs and upkeep of your distressed property in Kansas City.
While there are advantages to using a professional auctioneer, keep in mind the usual fee for their service is a rather high 10 percent of the final purchase price. Should the bidder be responsible for the auctioneer’s fee, lower bids overall are incentivized. Otherwise, you’ll be responsible for their fee, absorbing additional costs.
Due to the nature of auctions, the outcome isn’t guaranteed, you may be up against the issue of low attendance. There is also the innate competition when a high volume of properties is up for auction at the same time, leading to lower bids.
No matter which you choose, make educated decisions by taking the time to understand all of your options. Would you like to learn more about how we can help you sell a distressed property in Kansas City? Just call Avid Property Solutions today at 816-680-6814 or send us a message any time!