Most people sell their homes only once or twice in their entire life, so it’s not surprising that many of them find the process confusing and difficult to navigate. To compound the problem, some homeowners may also have to sell while they’re out of state.
Ideally, a seller should put a property on the market when they’re still in residence or at least just a short drive away. Having the property easily accessible makes it easier to meet with potential buyers or deal with any issues in person. However, there’s also no rule that prevents a homeowner from selling their property while they’re not physically present.
Here are five options that homeowners can look into if they’re planning to sell a property while moving or living in a different state.
Selling Before Moving Out of State
The easiest way to sell a home is to do it before moving out of the state. Homeowners who choose this route often do so because they’re planning to use the proceeds of the sale to purchase their next home.
Here are some of the benefits of selling before moving to a new state:
- The property won’t be targeted by vandals, thieves, or squatters who’ll take advantage of the fact that nobody is there to stop or report them.
- The homeowner doesn’t have to pay for two mortgages. By selling, they free themselves up to apply for another.
- The homeowner won’t have to pay for the costs of maintaining two homes.
Selling After Moving Out of State
Selling a house after moving out of the state is complicated, but it’s not entirely impossible. Homeowners do lose control over the process to a certain extent, but it’s a good option, especially when the move needs to be done quickly.
There are two ways to sell when the homeowner is not around to handle the process personally: hiring a real estate agent to discover it’s worth or selling directly to a cash buyer.
A real estate agent will list the property, show it to potential buyers, and deal with the documentation and paperwork involved in the sale. However, an agent also gets paid a commission from the transaction, which means that the homeowner will receive less. If the home is in perfect condition, this is a great choice. If it’s in dire need of repairs, selling directly to a cash buyer may be the better option.
Homeowners don’t have to be present to show the property to cash buyers like Doug Hopkins. They can make an offer right away and buy the property as is. They also usually work with a licensed attorney who can facilitate the process, so the homeowner doesn’t have to travel back and forth multiple times.
Getting Bridge Financing
For sellers who need to move out of the state quickly for work or for family, paying two mortgages can be a huge financial strain. In cases like this, it might make sense for the seller to take out a bridge loan so they can buy a new home even if they haven’t sold their old one yet.
Bridge financing involves putting up the equity on the old home as collateral for the new one. Generally, the homeowner would be given six months to sell their old home and pay back the bridge loan.
Bridge loans are a risky option because they’re contingent on the homeowner selling their old home quickly. If they’re unable to do this, the lender may foreclose on the property once the term is up.
Renting the Property
For homeowners who are willing to take on the burden of maintaining a rental or distressed house and becoming a landlord, renting out their old home is a viable option. The rental earnings can help them pay for the mortgage payments of their new home.
However, renting out the property is also risky, especially for out-of-state Arizona homeowners. They’d have to screen their tenants carefully to make sure they’re not leaving their home to people who may miss payments or trash the property.
Selling to a Cash Buyer
It’s not hard to find real estate investors and companies who are willing to purchase an out-of-state property. It’s a great choice for homeowners who don’t want to deal with the hassle of repairing or renovating a home to get it ready for potential buyers. It’s a quick and hassle-free process—some transactions even get finalized within days.
Why Sell to a Cash Buyer?
Selling to a cash buyer is an attractive option for homeowners who live out of state. The closing time is faster, and there’s no fall-through risk. A cash buyer already has the cash ready for the purchase and won’t have to apply (and possibly get rejected) for a mortgage. Homeowners won’t have to do repairs since cash buyers purchase property as is.
If you’re thinking about selling out of state property, contact Doug Hopkins today to ‘sell my house fast‘. We’ll give you a fair offer right away, take care of the entire process so you can focus on your move, and make sure that you get your cash quickly.