Are you struggling to sell your home? Has your listing expired without receiving any serious offers? Or perhaps it’s still on the open market but you’re yet to receive any interest at all.
You could move estate agents and see if a re-energised fresh pair of eyes can make a difference; consider dropping your selling price; or rent your house out to cover the mortgage if you perhaps need to relocate.
But what if those options don’t work for you, and financial pressures mean that you need to sell right now?
Here are three alternative options on how to get rid of a house that won’t sell. Be warned, some are better than others.
1. Short Sale
If you find yourself in financial difficulty, then keeping up with your mortgage payments can almost feel impossible. If you don’t get your finances under control, repossession is often the last resort, however it may be wiser to consider a short sale.
A short sale is the process of selling your home and giving the proceeds to your mortgage lender. As long as agreed beforehand, the mortgage lender accepts the balance from the sale and releases you from the debt.
While your immediate financial headache may be solved, short sales are not without their drawbacks. Firstly, it will affect your credit rating and may prevent you from being able to buy another house for several years. Secondly, not all lenders are prepared to accept a short sale, so it may not even be a credible option for you.
2. Repossession
This isn’t really an option that you would ever choose; it’s instead one that would be forced upon you if you fall consistently behind on mortgage repayments. Every effort should be made to avoid repossession – from speaking to your lender to renegotiate payment terms, to getting your finances under control and reviewing benefit entitlements – as it will do more harm than good for you financially.
Not only does repossession mean that you will lose your home, it also has a damaging long-term effect on your credit score (greater than that of a short sale). Repossessions stay on your credit rating for up to six years; this means that you will struggle to obtain credit during this time or obtain credit under favourable terms. Worse still, if the sale of your home by the bank doesn’t cover the cost of your debt, they can still come after you for the remaining amount.
3. Auction Lottery
Selling your house at auction is a quick fix, but not without its drawbacks.
If you put your home up for sale at an auction, you’re more or less guaranteed a sale.
What you can’t guarantee is the price. It’s essentially a gamble on the night, and you could end up with much less than your expected (or need). As well as the potentially lower price for your home, there are also fees to consider; these are usually £5,000 + VAT up to a minimum of 3.5% + VAT. It is payable by the buyer, but they will make sure this is factored in to the price they offer, so it’s still essentially coming out of your pocket.
4. Cash Sale
If speed is your priority, then this is your best option and one that you should seriously consider. It means that you control the process and the price you sell your home for, plus the process itself won’t negatively impact your credit rating score.
But where do you start?
Property cash buying companies are becoming more common on both a national and local level, as more and more people look to sell their homes as quickly and conveniently as items on ebay.
The need to sell quickly is often motivated by financial stress caused by divorce or spiralling debts, but can also be motivated by an immediate need to relocate or the unexpected death of a loved one (probate).
Local cash buying companies will always work out better for you than their national counterparts. For example, they offer accurate valuations as will visit your home rather than relying on computer algorithms; are transparent and won’t move on price at the 11th hour as they have a local reputation to protect; and offer a personal service where you’ll deal with the same person from start to finish rather than being passed from pillar to post every time you call.
Most will make a same-day cash offer and can exchange within a week; in layman’s terms, then means cash in your pocket, and hopefully the end of your immediate financial woes and the ability to take your next step. Equally, you don’t need to factor in any time ‘getting your house ready to sell’ — broken windows, cracked paint, a hold in the roof, it doesn’t matter as most home buying companies will buy your house whatever its state of disrepair as they will be doing it up anyway.
The selling process is simple and quick: there is no middle man estate agent and therefore no selling fees, plus some companies like Hull Cash Buyers will also offer to cover your legal fees if you use their chosen solicitor.
If you live in Hull or East Yorkshire and are struggling to sell your property, get in touch with our team on 01482 655346 or email info@hullcashbuyers.co.uk. We have over a decade of experience working in the area and will always offer a fair and accurate price for your home within 24 hours of seeing it.