How to get to closing quickly
How to sell any house fast.
Current Market Analysis Report
Warner Robins, GA. –
Have you even wondered, “How do I sell my house fast?”.
Well, it is possible; even in this real estate market. First, we will discuss what causes real estate transactions to take weeks or months to close. Second, we detail common problems that may cause the sale to fall through. Third, we will present a solution for selling a house fast.
Why does it take so long to sell a house?
The house must be ready to sell. Major and minor repairs must be made. Outdated fixtures must be updated. This can take weeks or months, especially if you are a procrastinator.
- A buyer must be found. This usually involves several showings over many weeks, months, or years. Not only must the house be the correct size and in the right price range, it must also have that ‘special something’ that lets a homeowner know this is ‘their house’ when compared to all the others on the market.
- Financing must be obtained. For this, the buyer must be evaluated to ensure that they meet the lending requirements for the given financial institution. During loan underwriting, the buyer is frequently asked to produce extra documentation, and collecting and assembling this documentation takes time.
- A title search must be performed to ensure the title is clear. This is usually one of the last steps before the closing and it takes several days, maybe weeks.
- Any stipulations (additional requirements) required by the lender must be performed. This could be an increased down payment, additional documentation, the purchase of private mortgage insurance, or many other requirements.
As you can see, there are many steps involved in selling your home. During this time, the house must remain available for viewing on a moment’s notice.
Why do sales fall through?
Just because you have accepted an offer on your home it does not mean you have sold it. The time from contract to closing is often the most stressful period of a real estate transaction. While it may seem that you are just waiting for the closing date, there are actually lots of things going on. Any of these could cause the deal to fall through. Here are just a few.
- The buyer cannot obtain financing.
- The buyer has qualified for a loan, but the lending requirements change before closing and the buyer no longer qualifies.
- The appraisal comes in lower than expected. This frequently kills the loan, or requires the purchase of private mortgage insurance at a cost that may kill the deal.
- The house fails a home inspection. In most cases, this allows the buyer to cancel the contract and have their earnest money returned. In the best case, there is another costly repair that the seller must perform.
- The buyer backs out. Perhaps they have found a home they like better, or their financial situation has changed.
There are many reason that a sale can fall through. The list above is just a sample of the common reasons.
What can you do?
In order to increase your chances of quickly selling your house you must overcome all the problems above. At a minimum you must:
- Find a buyer
- Ensure the buyer can get financing or pay cash.
- Find a buyer with experience handling potential title problems.
- Find a buyer that will not insist on contingencies, such as a list of repairs.
- Ensure that the appraisal will be high enough. Or, that no appraisal is required.
- Make sure the house is ready to pass and inspection, or that no inspection will be needed.
This is a daunting list. Getting all of these variables in order can be a daunting task. However, you can eliminate most of these problem buy finding a buyer that is willing to pay cash. In this case, no appraisal is needed and there is no lender to change the rules. Then, if you can find an experience buyer that will handle any repairs and overcome title issue you will have greatly increased the chances of selling your home.