When selling a property, owners can take one of two significantly different paths.
Path One: Selling a property to a typical buyer
The seller hires a realtor who places the property on the MLS (Multiple Listing Service).
On the advice of their realtor, the owner may have to make (and fund) repairs and upgrades to their property before showing it to prospective buyers
When ready, prospective buyers will schedule a time to view the property and the showings will continue until the seller receives an acceptable offer
Most buyers will hire their own realtor, who dispenses real estate advice for free in hopes of eventually receiving a commission once a sale is made. Typically, the commission of the buyer’s agent as well as that of the listing agent will both be paid by the seller once the deal is finalized.
Once the buyer finds a property they like and are in contract with the seller, they will begin the loan application process with their lender.
This process can take from 30 to 60 days. During that time, the buyers will gather their personal financial information for their lender to review. This information might include bank statements, paystubs, tax returns, credit reports etc. The lender will assess the buyer’s ability to repay their monthly mortgage payment, taxes, insurance and homeowners association dues, if applicable.
The buyer will also hire an inspector to perform a physical inspection of the property. The inspector will provide them with a report describing the condition of the entire property, including the roof, heating and air system, plumbing, electrical, water heater, appliances, walls and windows, along with supporting pictures.
If this report shows the property in a negative light, it could seriously impact the buyer’s ability to obtain a mortgage. This is particularly true if their loan is an FHA (Federal Housing Administration) -insured loan, as the qualifying guidelines for this type of loan require the property to be in reasonably good condition.
The lender will also have the property appraised to determine it’s value.. The result of this appraisal plays a big part in the buyers’ loan application as in most cases, the lender will only loan a percentage of the agreed sales price. If the appraised value falls short of the agreed sales price, the seller ‘may’ agree to reduce the price. If not, the buyer may have to come up with a larger down payment.
Any changes in the buyer’s financial situation or change in mortgage interest rates during the application can also affect their loan approval.
If all of the required conditions are met, the buyer and seller will then schedule and prepare for the closing of the property.
Path Two: Selling a property to us
We will gather information about your property to determine how we can best help you. Our property assessment typically takes only one day.
We will make an offer on your property and, if it meets your needs, we will close according to your schedule.
The condition of the property does not matter to us.
You will not be asked to fix anything.
You will not have to put up with inconvenience of multiple showings.
You will not be asked to pay any realtor commissions.
You will not be asked to pay closing costs.
We pay cash or use private funds, so our ability to pay for your property does not require appraisals or loan approval from any conventional lender.
