Should You Sell Your House When Relocating For Work

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Keypoint Solutions is looking to expand their home buying efforts in Indianapolis, Indiana.

Relocating can be a very stressful process, closing bank accounts, suspending utilities and forwarding mail are the most straightforward steps, there are some processes though that need a bit more work, and don’t even depend completely on you. Selling your car is a great example, you can post your ad online, offline and even staple a few flyers onto an electrical pole, but that doesn’t mean that you will be able to sell your car. First, you must find someone that not only needs a car but someone that likes it and has the money to purchase it. Houses are the same, with the main distinction that you can keep a house and still make money…at least at first glance. Let’s take a look at what might be more advantageous, to sell or keep your house?

Renting Your House Out

Upon first impression renting your home out might seem like a great idea; you make passive income and if you have a mortgage, a large part of the rent will go towards your repayments. But things are rarely that straightforward. Renting can be a logistic nightmare. You will be obligated to maintain the house through-out the term of the lease you have with your tenants.

Even before you can sign a lease, though, your house might need work to be to meet rental properties codes in Indiana and this can cost thousands. In places like Indiana, or anywhere else that has winter temperatures that go below freezing, even if the house is empty you will have to pay for heating to ensure that water pipes do not freeze and burst. If your house is empty you will be forced to continuing paying both the mortgage and insurance.

Keeping a home might also seem like a solid investment, but as the house ages, you will have to invest increasing amounts of money into its maintenance. Initially most properties will require aesthetic/cosmetic fixes such as painting, lawn work and siding.

As the home’s facilities become used though, you might need new heating and cooling units, plumbing maintenance, maybe even foundation work. In general keeping a house up to standards to maintain it as a rental property can be an immense financial burden. Maybe I should also add that in certain regions rental properties are taxed higher than family homes.

Financial Issues

I have another hypothetical wrench to throw into your well-oiled plan; what if you are a little behind on your mortgage, what if you are very behind on your payments? Let’s take the scenario where a home-owner is teetering on the edge of foreclosure, it’s tragic, sad, but it happens. On top of that this hypothetical home-owner now has to move because his employer is relocating, or due to a more lucrative job offer. Selling a home can take months to finalise and it’s never guaranteed (in the early stages) that it actually will go through.

Sure during the period between the start and closing of the sale, you could probably negotiate with the bank that has the mortgage, but what if the deal is completely derailed? That could mean that your house goes into foreclosure. This not only means you lose the house, you also lose any equity you had on the property. In fact 7 million people lost their homes in the U.S. during the recession. Indiana is on the higher end of the national foreclosure spectrum, with 1 in 1,708 homes being foreclosed on a year. In certain counties such as Fulton that number shoots up to 1 in 806 homes.

In that last scenario, especially if you are moving to a new location, while trying to avoid a potential foreclosure, you need to sell your property immediately. There are various solutions, but the best plan of action is to go with a reputable, experienced company. Not only will they walk you through the process, they will offer advice or a referral to another company, to help you avoid foreclosure.

Vacant Homes

Another possible situation might see you in a different location with your house sitting vacant. This is undeniably better circumstances than being at risk of foreclosure, but it can still become a huge financial burden. Without being in the same geographical location as the home, trying to sell it might be a daunting endeavour. There are companies that will not just walk through the process; they will take over everything making sure you get exactly what you want: a fair price for your property.

Just a little cherry on top, the company fairindycashoffer won’t ask you to do any repairs, like you would have to if a potential buyer or realtor was asking for them, for fear of souring the deal if you didn’t. In fact, they will make an offer on your house “as is” meaning they will not require you to do anything, or invest extra money into your property. The company I mentioned above will even do some of the work that would normally be a prerequisite when selling even a car: cleaning out the property. 

Hidden Cost of Working With A Real Estate Agent

Selling your property through a real estate agent comes with hidden costs…fees and commission that are universal when dealing with real estate professionals. Agents will generally charge 6-7% plus 3% closing fees. So a total of 10% of what you will take home (after taxes of course) will be given to the agent. At $150,000 that’s an immense, only slightly used Buick buying, $15,000. And that Buick might even have seat warmers, but you’ll never know because you choose to deal with an agent. Buying companies on the other hand, aren’t technically real estate brokers, they are real estate investors. They purchase the properties with their own money and even take care of the closing costs and do not charge commission.

Working With a Buying Company

There is another great benefit to working with a company that uses its own money to purchase your property that you probably didn’t even think about: dealing with a company that has a human touch. According to customer testimonies, when one of the company’s clients had a health issue during the process of gathering their personal belongings, they were told to not worry and take their time. Furthermore the client said that the people she worked with seemed genuinely concerned with the client’s health.

When working with banks and people motivated to make a commission, the human element of the transaction can take second place and that is definitely not the type of transaction you want. With everything going on and all the balls you need to keep in the air when you are moving do your really want to deal with all the bureaucracy, paperwork and expense associated with selling a house? An added benefit is the process depends on no one else but you. You don’t have to weight for someone to like your house, for their loan to go through or to invest any more money in a home you intend on selling anyway.

Have you ever had to sell your house to relocate for work? How did you handle the sale? Let us know in the comments section below...

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Keypoint Solutions is the largest home buyer in Indiana. They have helped hundreds of home sellers avoid realtor fees, expensive home repairs, and even heavy transaction costs.