Do you want to sell your home in Baton Rouge? If so, we want to share some possible alternatives to a listing. Many people aren’t aware of the options that are often available! Check out our latest post to learn more about what is available for you!
Selling your house, even if you have sold one in the past, can be intimidating. Most people think they just talk to a realtor, take some pictures, and throw it online. Then, they have an open house the first weekend, 300 people come, and they pick between 50 full price offers. If only it were that easy! Instead, you have to make repairs, clean the property, maybe have an open house (but these are mostly for Agents to network), do tons of showings, keep paying your utility bills, lawn care, decluttering, and more. All of these tasks are a pain in the butt, and take time, so we understand why people come to us looking for a different option, especially if they are also trying to move.
Although, listing is the right solution for most people, in some cases there are more efficient alternatives that leave the seller happier and less stressed. Consider some of these alternatives to listing when you are ready to sell your Baton Rouge house!
Rent To Own
Are you interested in real estate? What about getting the maximum price out of your property? Rent to own could be the move for you. It will open up even more potential buyers since those who cannot qualify for a bank loan may be able to work with you. You also can sometimes get above market value for the home since there are no appraisals and you are helping someone who doesn’t have the opportunity for home ownership otherwise. There are many reasons a person may not qualify for a traditional loan, maybe they are self employed (like me), maybe they just have always used cash so they don’t have a credit score, or maybe they have another mortgage and don’t want to put a selling contingency in their offer.
These people all could be great buyers, and will often pay higher than market rent for the opportunity to buy your home. Although you should always talk to an attorney and accountant before making any decisions like this, we will teach you about the basic structure. First, the buyer pays you a lump sum in advance, you can think of it like a deposit or a down payment. Then, you also charge a higher than market rent with a portion going towards purchasing the house. At the end of a year or two, depending on how you structure the deal, the buyer must purchase the home at the agreed upon price. They can accomplish this by seller financing, bank loans, or other creative methods. The rent to own contract gives them time to get their finances in order.
You still should make sure they can pay their bills before accepting anyone for a rent to own, because the last thing you want to do is take their down payment and put them in a worse position than they started. The goal here is to help someone who can’t qualify for a loan, by becoming the bank. Banks don’t loan to people who will not be able to pay them back.
Hold As a Rental Property
Although this is similar to rent to own, there still are some differences. I love rental properties, and think the headaches of being a landlord are worth the money coming in every month, even if I’m on vacation (although I don’t get much time off…).
There are two keys to having a successful rental property. The first key is to fix up your property so everything works and is safe. We like to make ours nicer than all the other ones so we get the best possible tenants in the area. The second key is to screen your tenants well. ALWAYS verify income, employment, and get references from past landlords. We just had one where everything looked good on paper, we called her landlord and they told us they were currently evicting her for nonpayment of rent! If you do those things, you will increase your odds of having a great tenant who pays the rent every month. Many people who aren’t able to sell the traditional way, will instead opt to rent their home out.
It can be a lot of work, especially the first time. But if you are interested in real estate, diving in is the best way to learn! If it seems like too much work, you can always hire a property management company to help you with routine maintenance and rent collection. Many people find owning a rental property is an excellent way to secure extra income.
Selling to A Direct Buyer or Investor
This is the best way we can help you! When selling direct to an investor, you save a lot of the up front costs that you would pay if you list it. The most obvious savings are real estate commissions (usually 5-6%), repairs, cleaning, and utilities for the time the property is listed. You also don’t pay closing costs, don’t have to do 50 disclosures and forms, and the process is usually much faster. There are typically very few if any contingencies, and if there is an appraisal, the outcome of it will probably not impact your sale going through.
When you sell your house directly, the buyer probably is using their own forms, which may be shorter, but also may not be ideal for you, so make sure you read their purchase agreement and seriously consider showing it to a real estate attorney if you aren’t experienced. Since you don’t have an agent looking out for you, it’s often a good idea to spend the $200 for an attorney to give you the “Looks good”.
This is one that I have never tried, but I have heard it works in some markets. Since the market is pretty hot, people are turning to auction services to sell their Baton Rouge homes. There are both websites and individuals who offer this service. Make sure they or you market the property well to generate a lot of buzz. You can put it on facebook real estate groups, craigslist, fliers, talk to real estate agents, and more to draw attention to your home and get a good turnout. The more people, the more bids, and the more money you get.
Auctions work best for people who want to sell by a specific day, and it generally will help you sell faster, although the price you get depends on your marketing.
There are tons of expenses that add up when you have a house sitting on the market. There are mortgage payments, homeowners insurance, property taxes, repairs and general depreciation. If you are holding on to a home that isn’t income generating, it is costing you money. The best solutions to this is to sell fast, or have it generate income for you. If you have a ton of money already and/or your home is in great shape, then listing it on the market will still get you that quick sale and top dollar.