short sale Archives - Handsome Homebuyer

Jun 2022

Can I Sell My House for Less Than It’s Worth?

Charles Weinraub2024-01-06T12:51:09-05:00June 27, 2022|house selling tips, short sale|

A homeowner can sell their home at any price they choose. If you own your home outright, the choice of when to sell, how much to sell for, and how to do it are all up to you.

There are special situations where there are other factors to be considered.

Gift of Equity: When a seller chooses to sell well below market value because they are dealing with family or a close friend, the amount of the difference between the price they charge and the market value is the gift of equity. This amount is not taxable for the buyer but may be in some form for the seller if the amount is large enough.
Short Sale: This is when a lender agrees to allow a debtor to sell equity, such as a home, at a lower value than what the debtor owes.
Sale Price: Sometimes, a seller will set the price of a piece of property slightly lower than market value just to give buyers extra incentive to buy to get the property off the market sooner.

Should I Sell My Home for Less Than Market Value?

Whether or not it is a good idea or even necessary to sell your home at a price point below market value will depend heavily on your specific situation. Selling low because of using a gift of equity is almost always based on familial connections or a very close friendship, and is done because the seller is financially able to do so.

Selling low in the case of a short sale is almost always a matter of necessity for the seller. It most often happens because the owner’s debt exceeds the home’s actual value, and it is best to cut losses where they are and move on from the situation.

When a seller chooses to sell my house fast for market value, it may be because of economic situations in the market overall, a need to sell a house quickly to relocate, or other personal matters. When selling below market value during a short sale or to produce a fast sale, it is a good idea to consider alternatives to the traditional housing market.

How Can I Sell My House Fast at the Best Price?

In many situations, the best way to sell a house fast at the best price and with the least hassle, you will want to opt for working with cash buyers. The problem with this scenario is finding cash buyers quickly.

Some lucky people will know someone who wants to buy their home, such as a next-door neighbor looking to expand their lot. However, most people are not lucky enough to just fall into this kind of perfect scenario.

Where to Find a Cash Buyer Now

If you have decided that finding a cash buyer would be your best-case scenario, you should look for investors or investment companies that buy homes for cash, like Handsome Homebuyer. They buy houses in an as-is condition and pay the homeowner cash fast for their property.

The best part is they can work with homeowners in almost any situation, including bankruptcy, foreclosure, divorce, or even those with damaged and unlivable homes.

Unlike most companies or investors who buy homes for cash, Handsome Homebuyer can also work with you to put your house on the traditional market to try for a better price. So if you need to sell your home fast for any reason, contact Handsome Homebuyer today!

Apr 2022

How To: Properly Dispute a Short Sale Value

Charles Weinraub2024-01-06T12:49:52-05:00April 5, 2022|short sale|

Imagine a scenario where you’ve seen a short sale property listed on the market, and you’ve gone into contract and received an accepted offer. But the bank comes back with a value higher than your offer and won’t sign off on the short sale. How do you convince the bank that your proposed purchase price accurately represents the true market value of the property, especially considering that you were the highest bidder? There are three very important things which you need to prepare before you present your argument to the bank.

First, get an independent appraisal. This can back up your stance regarding the state of the local real estate market and demonstrate why your bid is in line with fair market values.

Another impactful piece of evidence is a contractor’s estimate. A licensed and insured contractor can provide you with an itemized estimate of the cost of any and all repairs needed to rehabilitate the property. This is vital because the bank’s BPO (broker’s price opinion) professionals are experts in determining property values, but not in estimating construction costs. The contractor’s estimate will back up any claim you make that your purchase price is reduced due to the anticipated cost of repairs to the home. This is one of the greatest sources of the discrepancy between your bid on a property and the bank’s proposed value.

Finally, draft a concise, clear letter expressing to the bank or asset manager why your offer on the property is what it is.

It should briefly summarize the following:

The state of the neighborhood
The desirability of the school district
Any outside factors which may negatively affect the property’s value, such as proximity to businesses (for example a gas station) or another less desirable location

The letter should be brief, but clearly illustrate why these factors should be taken into consideration when determining the property’s true value (and why your bid is in line with it).

With all this evidence compiled, you can make a compelling case to the lender that your sell my house fast in Long Island offer is reasonable and likely to be the best way to minimize their losses.

Apr 2022

How to Buy a Short sale in Real Estate

Charles Weinraub2024-01-06T12:48:54-05:00April 5, 2022|real estate investing, short sale|

A short sale occurs when a bank allows a property to be sold for less than what is owed to the bank. Investors as well as end users have been purchasing properties in this way for years. Typically, you see more short sales take place in states like New York and New Jersey where the foreclosure process takes many years.

So how does a short sale work? A property that is “under water” (more is owed on the mortgage than the house is currently worth) is listed by a real estate agent on the market as a short sale. Buyers will submit offers the same way they would on a non short sale. The highest offer will be brought to the bank for their review. At this point the bank sends either a BPO agent (broker price opinion) or an appraiser to evaluate the property on their behalf. Once the value comes back the bank can either accept the current offer or reject the offer due to a discrepancy in the value. This is where the magic happens.

Often banks don’t understand the true market value of a property because they don’t work in that market everyday. Furthermore, appraisers and BPO agents are market value experts, not construction cost estimators. It’s for these reasons that values and contract prices vary widely. So how can an investor get the bank to understand the true market value of a property?

Handsome’s value dispute method

Every good value dispute has three key components: An independent appraisal, detailed letter about the property/neighborhood, and a construction estimate. Prior to the BPO have your own appraisal done on the property. Make it fair. Don’t purposely skew it and come in low because the report will be dismissed. Second, have a licensed contractor generate an itemized written estimate of all repairs that need to be completed to bring the property up to standard. Make sure to suggest the appropriate level of repair. Don’t have your contractor budget $30,000 for a Wolf stove in a $350,000 house. Lastly, put together a letter describing the property that is short and to the point. The letter should discuss the reno, value, specifics on the house, area, school district, and more. The goal is to make it easy for the examiner to understand your position and perceived value of the sell my house fast Long Island based on facts. These steps have worked for me and will work for you as well.

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