Home ownership isn’t what it was in the 1950’s.
In the past, people would buy a home and live there for the rest of their lives, often passing it on to their family. Things have changed. Many first-time homebuyers are going into it with the attitude that they’ll sell when it’s time for a change.
Despite the market trends in Austin slowly shifting, it’s still very much a seller’s market. However, there are signs the market is shifting. In ABOR’s (Austin Board of Realtors) monthly report for May 2017 new listings increased 15%, active listings increased 22% and inventory increased 16% from the previous year. Increasing inventory is a sign of normalization of the market. It’s yet to be seen if this is a temporary shift or the genesis of a lengthy trend.
I do want to be clear: increasing inventory is not a sign of collapse but instead a return to normal. The dearth of inventory in Austin for the last few years created unsustainable appreciation and the latest reports are signaling the return to a more stable market. Austin’s inventory, 2.8 months, is still well below the “balanced” market benchmark of 6 months.
So we’re still in a seller’s market.
But that doesn’t mean homeowners can be laissez-faire when buying a home with the thought they’ll make a killing when they sell it. Real estate has an extremely high cost per transaction. Agents will reduce the revenue to a seller by 6%. In the Austin metro area the median home price is $310,000 so seller’s will be out $18,600 after using an agent. Now including closing costs they’ll be out another 2% or $6,200. That’s a total of almost $25,000 out of the seller’s hands.
Now let’s keep in mind those selling will need to BUY a new place in the same seller’s market. The thought of losing $25,000 in revenue will surely curb the thoughts of selling, at least temporarily.
There is also another hidden cost most homeowners don’t consider when selling: time.
In Austin the current average DOM (days on market) is 43 days. DOM is defined as the total number of days the house is active on the market, from the day it was listed to the day an offer is accepted or it’s withdrawn from the market. More plainly it’s the time required to sell.
But it’s an incomplete piece of data because it doesn’t factor in the time for buyer’s to secure financing. This will add another 45-60 days minimum. It could add another 180 days if the buyers have issues. Also, inspections, surveys and deed status could all produce delays to process.
So at a minimum there will be 90 days from listing a house to receiving proceeds from a sale.
Other Hidden Costs Of Waiting To Sell Your Austin House
Many people don’t consider the hidden costs of holding on to a property.
Extra months of mortgage payments, utilities, maintenance costs, and other fees could quickly add up. By selling at discount, you could potentially end up with a larger sum in the long run.
By selling your home to a real estate investor, you’re saving yourself possible months of headache, and you can quickly move on to your new home. You’ll avoid expensive fees, closing costs, and investors will purchase your home as-is, assuming the costs of repairs that you’d have to pay if you were selling via more traditional means.
How To Sell Your House To An Investor in Austin
Independent investors typically purchase homes, repair them, and then use them to generate income; either as rental units or sell them for a profit. Austin has numerous reputable and trusted real estate investors who will help you sell your home quickly.
Selling your house to an investor is simple.
You provide him or her with information about your home and personal situation.
The investor will then inspect the home and determine a fair value, taking into account necessary repairs, and make an offer. If the offer works for you, you’ll close, and receive the payment for your house in cash… within 7 days if you want to close that fast.
This process is extremely quick compared to more traditional methods because investors buy houses as-is for cash. Closing with cash significantly compresses the timeline by removing the financing process.
If you need to sell your Austin house fast, with little hassle, selling to a investor is a great option.
When you work with a real estate investor… there usually aren’t any fees involved, as you don’t have to worry about paying an agent commission, and most often, the investor will cover the closing costs.
Investors are looking to purchase homes at a discount, allowing them to add value in the form of repairs … then sell the home to another home owner.
But there are significant obstacles to avoid when dealing with real estate investors. Investors are generally one of 3 types:
Newbie, charlatan or professional. This first two are not really “investors” and they have no idea what they’re doing. The only difference is the charlatan has a surface level of knowledge and perhaps a connection to a professional with hopes to lean on them for advice. But they don’t have knowledge to perform a complex real estate transaction without significant guidance. Simply put: you can recognize the newbie almost immediately but you may not recognize the charlatan until they make a mistake in the transaction. And they will.
Both the newbie and the charlatan will tell you what you want to hear. Not because they’re trying to deceive but instead because they don’t know what they’re doing. The newbie and the charlatan act this way because they are generally desperate. Either to get the experience of their first deal or because they’re broke.
A professional will tell you what the house is worth whether you agree with them or not. They’ll be able to tell you why it’s worth that amount, with data. They won’t give you wide price swings in their negotiation either. They’ll be able to tell you when they can close and the title company they use. They will be able to assist in the transaction and answer any questions necessary. They will be consistent and “professional”.
Selling your house to an investor is simple.
But….Picking the investor is harder.
Avoid the desperate.
To get a free, no obligations cash offer on your home: