Everyone can get in debt. If you owe a lot of money to the IRS or a lender, you might consider the option to sell your house to pay off debt. This way you will get rid of that too high mortgage while also having enough money to pay off all you owe. But is it really such a good idea? Below are three reasons why it isn’t cost-effective to go the traditional route if you want to sell your house to pay off debt.
The expenses are too big
Selling a house is not a cheap process. It usually takes several months to sell your house the traditional way, and the waiting process costs by itself. As long as you are the legal owner of your house, you are the one responsible for paying the utility bills and the insurance, and let’s not even start with the mortgage price! If you are working with the real estate agent who will list your house on MLS, you also have to count on the 6% commission. As advertising usually isn’t counted in the average price of a real estate agent, you will also have to be financially responsible for photographing and staging the property. However, there is way to sell your house to pay off debt and to avoid all the costs, and that is to contact the direct buyer such as Sparks Property Investors LLC, as we will buy houses as-is and we can close the sale for as quick as 7 days!
Buying another home takes too much time and money
When you are selling your house to pay off debt, you will have to have another place to live in. Finding the right house doesn’t happen in an instance. It can take up to three months to pack your things and find another place to live in, and all this time you have to think about finding a roof over your head. Unless you have another property just lying around, you will most likely have to rent a place to stay if you have sold your house and haven’t bought the new one yet – and paying rent costs money. Not only that but when you buy a new house, you’ll pay loan origination fees as well as other loan expenses, also appraisal costs and closing costs. All these costs can pile up to 5% of the cost of the house! Not to mention the price of buying new furniture, necessary repairs and moving costs.
Your equity takes a huge hit
If you’re like most people, your home is your biggest and most important investment. For some people, especially those who are in retirement, their property is their only significant investment. The big advantage of owning a property is that it’s not easy to get equity out of your house. If you sell your house the traditional way to pay off debt, your equity will take a huge hit that will be hard to recover from. However, if you sell your house to the direct buyer, you will be paid in cash, which means that, depending on the amount of debt you are in, you may be able to buy a new house right away.
When you sell your house to the real estate investor, you will be able to close the sale for as quickly as seven days! This will save you from a lot of holding costs and also allow you to have money in your pockets faster. At the same time, you won’t have to worry about repair expenses, as most real estate investors, such as Sparks Property Investors LLC, will buy your house as-is. You will also be able to sell your house before officially putting it on the market! This is why, if you’re considering selling your house to pay off debt or to avoid foreclosure, contacting the real estate investors is the best option.