How Do I REALLY Sell My House Fast in Chesapeake?
Today we’re gonna talk about the absolute best time to sell a house.
So when is the best time to sell a property?
Well, the truth is it depends.
If you bought it the right way, then anytime should be the right time.
However, will there be times in the market that are more advantageous than others? Try this one for a minute: Consumers and investors usually follow separate and opposite tracks.
So when all the consumers are buying up real estate, do you know what investors are typically doing? That’s when they’re selling! When everyone is in this buyer’s market, that’s when you can usually sell for the highest price and that’s when investors wanna trade into different properties.
Sell My House Fast Virginia
But the opposite is also true.
When all of the consumers are dumping and saying “The sky is falling and it’s the worst investment that we saw in ’07 and 2008 and 9 and 10!”.
What were investors like me doing? We’re buying up everything like crazy! WarrenBuffett – he had his own hedge fund at the time.
He was buying 30.
40,000 homes per-year into the markets that actually were totally decimated.
So, best time to sell a home is really at the market high before it falls out is when you’re going to really cash in on top dollar.
But if your strategy requires that, then you may have in fact, the WRONG strategy.
Because if the market is ever turning and moving it away that it’s not advantageous for you, you should be able to continue holding that home, cash flowing it, and continuing to make money on it.
This is a very common situation, these days; and it will become an epidemic.
There are millions of adjustable rate and Option Adjustable rate mortgages that will be "resetting" to a normal interest rate as their "teaser rates" expire over the next couple of years.
This will put severe financial pressure on families who were able to buy their homes only because of those artificially low payments in the first place.
Many will be unable to refinance or even sell their homes because of the looming glut of homes on the market and the stalling of price appreciation.
Many of these people have little or even negative equity in their homes, which compounds their difficulties as realtors will not list their homes, as they see no way the home owner can pay their commissions.
These people also have little to no flexibility to reduce the price of their properties because the mortgage payoff and the closing costs will require them to bring cash to the closing to buy their way out of their homes.
Also, these homeowners will have a diminished fervor to stick it out through the hard times just around the corner if they have no equity, abandoning their homes and adding to the greater problem.
The ultimate nightmare is for people in this situation to be forced to sell their homes for financial reasons. They are headed straight to financial ruin; bankruptcy, foreclosure or both.
Selling a house is a Marketing problem. If I recall from Marketing 101, a product will be successfully sold when you position it as the most competitive product in front of the largest possible market. Painting the porch is not going to make your house the most competitive; everyone else is painting their porch too.
What if you could offer your house for sale and the buyer did not have to qualify for a new mortgage, do you think that would make your house stand out from the rest of the competition? This one change would also double or triple the size of your potential market of buyers. There is a "shadow market" of people who would love to buy a house like yours only they will not or cannot go through the "inquisition" of being qualified for a bank mortgage. These people include small business owners, self employed professionals, including real estate investors; foreigners and, yes, those with stinky credit!
They have the cash to put down and the ability to carry the payments, they just don't want to hassle getting a mortgage and they will be very grateful to be given the chance to buy a property with no bank involvement. How grateful? We have found that they will jump at the opportunity, pay 15-30% more than the appraised price of the property and will also pay a higher monthly payment as well, which can spell P R O F I T in addition to a quick sale at or above market value. There is only one way that will allow you to sell your home without paying off the mortgage and that is with a properly structured land trust. The trust will prevent the bank from foreclosing on your mortgage for violating the due on sale clause.
An added bonus is that when you sell the property in a land trust, there is no tax due on the gain; especially important if it is an investment property or a residence that has appreciated beyond the statutory exclusion of $250 or $500,000. Now, you can sell your property quickly, take a nice down payment, receive hassle free monthly payments; in excess of your mortgage payments for years and possibly another lump of cash when the buyer sells the property or refinances your mortgage. I say, "hassle free" payments because you will have no tenant, toilet or trash responsibilities to the new buyer. You don't call the bank that holds the title to your car if your water pump fails, do you? This has been the way out for many of our clients who were trapped in their homes and can work for you as well. Discuss this option with your realtor or lawyer.
This is one of the reasons why one of my many rules in real estate is that I buy below the median.
Why do I do that on my short-term buy and holds? Because if the market ever turns AGAINST me, I’m gonna keep on cash flowing that property and those lower-priced homes – they don’t lose value like a million ora half a million dollar home does.
So Warren Buffett has this principle, right?He calls it the margin of risk.
And really when you talk about the best time to sella house, I wanna draw attention to how Warren Buffett has become a billionaire and the, one of the greatest philanthropist of our day and age; all based on a very simple principle you may have heard called Buy Low, Sell High, okay?
Warren is a really great example if you read his book Snowball, of an individual that really live his principles. He must have understood VirginiaInvesting.com!
He says if you wanna reduce your risk, you gotta increase your margin of profitability.
So it’s real simple:If you buy a house as an investor, you buy it with a lot of equity ’cause if you do, whether it’s the wrong or right time to sell, you can sell profitably! Understanding this principle is key for this next part: If you buy the right house, you can sell it anytime for great profit.
I’ve got an example here of the house that I’ve just recently sold.
This is a house that I sold and purchased in ’05 and sold in 2015.
So I’ve held onto this house for 10 years and here’s some background on this house: I actually leveraged a partner’s money and a partner’s credit to buy this house.
So how much money was I into this deal? I wasn’t in it at all.
And I used my staff and my team and we basically lined it up.
Now I have here the HUD.
This is actually the closing documents on selling this house where I received as you can see here a $38,986check.
But here’s the summary on this spread that I wanna point out.
I purchased this house in 2005 and we bought it for $109,000 and a down payment of 10% was $1,069.
My expenses over the life of holding this was 70,000 but my income was a 107.
What’s the difference? Roughly $37,000 that we got to make in cash flow and to down payments, deposits, along the way.
Then when we sold the house, we collected a check for $28,000 that me and my partner got to split afterI paid back my partner the $9,000 that he put in.
So he put in the money, he got paid back.
So basically there’s 28,000 of profits to split, there’s 37,000 that was made along the way, 37 and 28 is roughly $65,000, okay? So this tiny little house – 4 bedroom, 1 and a half bath, did a good job taking care of me.
Now let’s just for a moment take a look at the ROI.
I could’ve sold this house at any time but why did I sell it now? Well, it’s been a cash cow.
The little bit out, how do I know it’s a cash cow? For a moment, take a look at the ROI! We put in $9,000 but look at what we got out? $65,000! That’s a 720%increase.
Now, divide that over holding the home for10 years and that is 72% a year on your money.
Now, my business partner and I made 72% a year based on whose money? His money! He’s.
he and I get to split the ROI 36% each.
But let me ask you, if I put no money in, what is my real net ROI? It’s infinite! Think about it.
I didn’t put anything in, but I got all of that money coming back out to me.
So this is an example of ‘I could’ve sold this house at any time.
It’s been cash flow cowing.
Why did I really sell it?’.
Because the market was right! What do you do when the market’s wrong? Just keep making money and keep cash flowing! When you do real estate the right way, it can always be a great time to buy, hold, or sell.
which is why I love short-term buy and hold strategies ’cause I get to make my money along the way.
I hope you’ve enjoyed today’s video on the best time to sell your house.
Put some comments below! We’d love to respond and give you the help that you need as we work on turning you into a brilliant, bright, and successful real estate investor.
- [Announcer] Welcometo Homebuyer's School brought to you by Brookfield Residential.
- Hi everyone, andwelcome to another episode of Homebuyer's school.
Today I'm joined by Kevin French with ReMax Realty and thequestion we're going to answer is can I sell my home without a realtor? So Kevin, obviously you're a realtor.
Maybe a little biased answer but is it possible to sell your home without a realtor? - Absolutely.
It's typically better to do that in a seller's market,instead of a buyer's.
Currently we're in a buyer's market so the advantages weighingon the buyer's side, it's much more difficult to sell so if you're not aware of how to properly market your property, price the property, then those things are going to work againstyou, especially right now more than ever.
- I guess you need asmany resources as you can to help you sell your home.
- Okay and if I were totake that route though, if I wanted to sell the house on my own, what are some of the steps Iwould do to accomplish that? - So there's multiple site,obviously you can find things such as Kijiji or Forsalebyowner and you can list it on those, or you can look for assistance through Property Guys, ComFree.
Property Guys is a private system.
Your property wouldn'tbe on the MLS system but most people are aware that it exists so they can search thereif they are looking for a property.
And then with the ComFree option, the property would be on MLS so you take a package that they offer, and then you would listthe property with them.
They would coordinatea portion of the things for you and then it would be on the MLS and then you would help with the showings and organize all that, deal directly with whoever'slooking to purchase, whether it's a realtoror a single individual.
And then once an offer is received, then that would be part on the owner, who's selling the property themselves to set a price they are comfortable with but they would have a bit of assistance from ComFree.
- Okay, but you're takingcare of everything though.
Like booking those appointments or people calling youto say hey, I want to come visit your home.
- Making sure the home is show ready.
Making sure that it's showingin the best possible way.
Making sure that you'retaking care of everything that you want to make surethat you're taking care of.
Those little small detailsmake the biggest difference.
The biggest thing thatneeds to be considered is pricing.
I often list a property,I go in and let's say the property is worth499,900 and the person happened to have purchasedit in peak market in 2014, so they owe 520.
So now all of a suddenthey want to list for 549.
So they tell me if I list at 549, then we'll negotiate down to540 and then after the fees we'll be somewhere in the ballpark of paying it off.
Well that doesn't change market value.
So you can't really do that.
So what happens when you leave the sale in the hands of the person trying to sell the property and they're trying to do it on their own,they may take that route where they're trying to look for, well what are the expensesthat I need to cover and then that's what we'll price the home which has nothing to do with market value.
- So you're saying you mightleave some money off the table? - Well, the property, if you do that, if you overprice it, it's just going to sit on the market longerand then it's going to become stigmatized and then when it does actually sell, which might be years later or you might choose to list with anagent shortly after, being unsuccessful trying it on your own, then the property would sell at fair market valuebut now people are going to see that in the history.
It sat on the market for three months, or it sat on the marketfor a year, who knows? - When it could have sold-- - When it could have sold much sooner and probably for more money.
- Anything else to add? - No.
- Awesome, well thank you very much Kevin.
That's it for our show today.
Thank you very much for joining us and we'll catch you next time.
- [Announcer] That's another edition of Homebuyer's School.
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