If you have ever wondered, How do I sell my house fast in Connecticut, chances are you have some decisions to make. But fear not, there are options out there for you. In this article, we will review your options and the pros and cons of each.
List Your House With a Realtor
Listing your house with a realtor is always an option for selling. It’s likely the one most people think of first. The pros of listing your house with a realtor are you will get maximum exposure and likely a higher price because more eyes are looking at it. However, the cons of listing with a realtor are:
1. Contingencies
Once you have accepted an offer and have a signed contract, it will take another 2-3 months in the current market to close due to contingencies. The buyer will likely require inspection and mortgage contingencies. It takes time to satisfy these contingencies. The inspection typically takes place within the first 14 days after signing a contract, but then you have to negotiate on what the inspection finds. The largest hurdle is often the mortgage contingency. Usually, the clear to close from the bank takes 6 weeks or longer in the current market, and we have seen deals fall apart days before an anticipated closing because of last-minute mortgage failures. Which results in the house going back on the market. And the process starts all over again.
2. Inspections
The buyer will get an inspection and based on the inspection they will request repairs or credits. The inspector is hired by the buyer and does his best to protect the buyer’s interests. Therefore, he goes through the house with a fine-tooth comb looking for any defects. Some are major and some are minor. It is up to the buyer how many requests they will make or how much money they will ask for in credits. If you choose to list the property, this is where a great agent earns their money. A great agent can help you negotiate this list down to the lowest acceptable by the buyer to keep the deal moving forward.
3. Forced Repairs
Houses that require a lot of rehab work will likely not qualify for bank or government financing. Therefore, you may be forced to make repairs, or a large portion of the marketplace will not be able to buy your house. Banks, and especially government-backed loans require a house to be in decent, safe, and sanitary condition before they will lend on it.
Sell Your House to a Cash Buyer
Selling your house to a cash buyer eliminates many of the hassles of using a Realtor, with one downside……the price is often less. However, you are paying for convenience. There are some national chain cash buyer companies out there, and each should offer similar things. There are also some lesser-known local companies, such as T and A Developments based in Hebron, Connecticut. A good cash buyer should offer the following:
1. Buy your house in “As Is” condition
“As is” condition means the buyer will not have an inspection contingency and force you to do any repairs. A good cash buyer may still ask for their own inspection. However, make sure it is for informational purposes only and that they are not going to renegotiate on it. If a cash buyer requests an inspection, you can even request that they put in the contract that the inspection is for information only purposes if you are afraid of the company trying to renegotiate with it. This is one of the biggest benefits of a cash buyer; the seller will not be burdened with having to do any repairs, some of which can be quite costly and time-consuming.
2. Allows you to choose the closing date
If you are looking for an all-cash buyer you likely are facing a major life event. Such as, inheriting an unwanted property, facing foreclosure, falling behind in debt, don’t have money to make needed repairs, or just don’t want to go through the hassle of contingencies and timeframes associated with a Realtor. All of these mean that a fast, or long close, depending on your situation, is important to you. An all-cash buyer should be able to close in as fast as 2 weeks or as long as you want. We once worked with a buyer for a year and a half as they had to complete the probate process on a property they did not want. A good all-cash buyer should ask if you need to sell by a certain time and be willing to work with you on timing to fit your needs.
3. No real estate commissions
The typical real estate commission when listing with a realtor is 6%. If you list your house with a Realtor and find an all-cash buyer, you will still be paying the 6% real estate commission. However, if you contact an all-cash buyer directly and the sale is done without a Realtor, you save the 6% commission. So for each $100,000 you sell to an all-cash buyer, that’s an extra $6,000 back in your pocket.
Real Life Examples
Why would anyone sell to an all-cash buyer for less money, you ask? It all depends on your circumstances. If your house is in good condition and timing is not a major factor, then often selling with a Realtor is your best bet. However, in certain instances, an all-cash buyer can help someone out of an unfortunate situation. Here are a couple of real life examples and how an all-cash buyer could help:
1. Foreclosure
Johnny lost his job and is facing foreclosure. He doesn’t know what to do, and the court has finally set an auction date in one month. Since Johnny only has one month before the court auctions off his property, his best bet is to find an all-cash buyer that can close quickly and stop the foreclosure.
2. Unfinished Flip
Steve bought a second house because he loved watching HGTV and wanted to try a flip. He got started, did the demolition, then life got busy. He had a second kid, his wife wasn’t feeling well, and he had to help out more around the house. Suddenly, his flip idea just sat there. Because no maintenance was happening, the house continued to deteriorate. Now the house had no walls, no plumbing, and the electrical was not completed. No one will qualify for bank financing on this type of property and Steve’s best bet, if he doesn’t have time or money to finish the flip himself, is to find an all-cash buyer to buy the property as-is.
3. Unwanted Inherited House
Penelope was never close with her parents, and she was an only child. Penelope lives in California and her parents lived in Connecticut. Penelope’s parents got older and couldn’t maintain the house. They had a roof leak that caused some damage and as they got older they didn’t clean very often. The house continued to deteriorate until they passed away. When they passed away, Penelope inherited the house. Penelope doesn’t want to come back to Connecticut, clean out the house, make repairs and list it. She wants to sell it fast and be done with it. In her situation, an all-cash buyer can buy the house as is, she won’t have to make any repairs, and she doesn’t even have to clean it out. The all-cash buyer will take care of cleaning out the house.
This does not cover every scenario, but it should give you an idea of times when an all-cash buyer can help solve a problem and sell your Connecticut house fast.
In closing, your biggest decision to make on whether to sell to an all-cash buyer or list your property with a Realtor comes down to time or money. Depending on your situation, you have to make the decision on what is best for you.
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