6 Tips and Tricks for a Cost Efficient Private House Sale

Author: David Cuerden

When you make a decision to avoid the estate agent route and have a private house sale, you have to be ready to do some hard work and spend some money before you are able to profit from the sale of your property (which is in itself a hard thing to do in a slow market like today’s). You will have to stage your home for viewings, pay a solicitor, and give your agent a commission.

It’s no wonder more and more people are choosing to sell privately; figures now stand at 84,000 or seven percent of homes sold in the United Kingdom. Michael and Dana Walker were one of those who chose to go this route. Although they failed to sell without the help of an estate agent, they knew it could be done.

“When we bought our house, the negotiations went on at the kitchen table. It was just between us and the previous owner,” said Dana.

“The seller was able to give us a pretty good price since they didn’t have to pay a 3% percent commission to an agent,” she added.

It is not easy to sell a home privately though, so before you decide to do it, consider your market, your time, and your home. Take the following steps:

1. Research your market.

What is the average price of homes in your neighborhood? Is it a buyer’s market or a market with homes sitting for months without a purchaser or the other way around? Is your house located near high-end boutiques or along a busy main road? If your market circumstances, house condition, or location are not the best or at least acceptable, then you will probably need an experienced estate agent’s professional help.

2. Prep your house for viewings.
You do not have to go all out, but there are a few must-do’s if you are to attract buyers into your home. Start with the exterior – clean the windows, repaint if necessary, and give your front lawn a fresh new landscaping. Inside your house, fix those things that are obviously broken and remove all the clutter.

3. Consult with estate agents.
One of the best ways to determine the best price for your house to is get proposals from at least three different agents. Most agents will actually help you even if they know you are trying to sell privately. According to Ilyce Glink, author of 50 Simple Steps You Can Take to Sell Your Home Faster and for More Money in Any Market,” 80 percent of private sellers give up and end up hiring an agent; smart estate agents know that.

Before you decide on the private house sales route though, you might want to consider selling your house to cash house buyers. It is the quickest, most hassle-free, and most practical way to go if you need to sell your house quickly. There are a number of scenarios where you might need to sell your house fast. It could be that you’re having trouble paying off debts, or that you’re facing repossession, or maybe you’re relocating for a new job. Whatever it is, cash house buyers can finalize the purchase of your house within a few days or weeks. And just as with selling a house privately, you also save on estate agent commission and legal fees since negotiations are only between you and the buyer. They also buy houses in any condition, so there is no need to spend on renovations.

If that’s not for you, then consider these other options:

Private House Sale

If you choose to do this, be prepared to assume tasks usually performed by an estate agent, such as:
· House valuation
· Advertising and marketing the property
· Holding open houses for viewings
· Identifying who the potential right buyers are
· Making disclosures required by the law
· Closing the deal

Make sure you equip yourself with the proper knowledge by doing a lot of research. To avoid lawsuits, find out what is required by the law and hire a good solicitor to review your contract. Glink recommends letting buyers know that you are willing to pay their agent’s commission, if they have one. Otherwise, agents will not be interested in showing their clients your property.

Using online agents

You can put up a for sale sign outside your house, pay for a spot on your local newspaper’s Classified Ads section, or even put up a billboard to market your house. But are you reaching your market as far and wide as you can?

In a wired world, many buyers are actually looking online. There are many free websites such as YouTube, Craigslist, and eBay, where you can post adverts. So it might be worth spending a few pounds to list your property with online agents. According to figures from Estate Agency News, more than 12.6 million buyers searched for properties at the top five property portals in the UK in April 2007 alone. Among these, Rightmove.co.uk has been the most popular; it’s where two out of three of all successful home movers find their new homes.

David Cuerden is a specialist house buyer who can pay cash for houses and provide creative solutions when you need to sell your house quickly and stop house repossession. Visit Quick Home Sale UK Website at http://www.quick-homesale-uk.co.uk

Finding Money For Real Estate Deals

Author: Michael Moreno

Real estate investing can be a surefire road to financial freedom -unless you lack the capital to do deals! This one item -albeit a major one, holds back investors from achieving their dreams more than any other. Most people think that lots of cash on hand is required in order to do deals, but this is simply not the case. There are many other sources of cash for real estate deals available -even in this down market.

One source of funding is called Hard Money. This funding is usually provided by private individuals who will fund the purchase and rehab of investment property. Loan terms are usually 6-12 months. These lenders will charge anywhere from 3-8 points and 10-18% interest for making the loan. (Hence the term “Hard” Money) Care must be taken when using this type of funding, as the property must be rehabbed and sold within a relatively short period of time. The lender is not required to provide extensions, and may simply foreclose on the house at the end of the term.

Wholesaling real estate is a technique where the investor places a house under contract with the seller, and then “sells” the contract to an end-buyer. The investor has none of his own cash in the deal. This technique can be repeated over and over in order to raise cash to purchase real estate to rehab or hold for rental.

Another source is to utilize a home equity line of credit from a bank. These interest rates tend to be lower, and there is no specific end date on the loan term.

Converting an IRA into a self-directed IRA would allow one to borrow money from their IRA to use in real estate transactions. The benefits of this technique include the ability to defer taxes on capital gains, and the possibility of earning far more return on your retirement money than in the stock market.

Borrowing from friends, family, and private individuals is another way to raise the cash for your deals. Most people would be thrilled to earn 8-10% return on their money. If you have experience and can show them some positive results, they would be happy to lend. This technique is similar to using hard money, but there are typically no points paid and the interest rate is usually lower. There are plenty of courses and boot camps out there teaching investors how to raise private money. Because of the difficulty in obtaining bank financing nowadays, this technique is very important.

Seller financing for your deals is a terrific way to get in with no money down. A desperate seller might be willing to finance 100% of a purchase or even delay monthly payments until the deal is rehabbed and sold. Be creative in how you structure your deals with seller financing!

Websites like Prosper.com and other peer-to-peer lending sites can also be great sources of money for deals. Many people are interested in real estate but do not have the knowledge (or courage) to attempt to do a deal. Sell yourself and your real estate prowess on these sites, and people will be interested in lending on your deal.

These are just a few of the possible sources of money for your deals. Real estate investing is all about creativity. Don’t give up just because you do not have the cash!

Michael Moreno
www.cashflowdealmakers.com
mmoreno@cashflowdealmakers