Are you considering selling your house, but haven’t quite figured out everything yet? If so, we totally understand. Sometimes in life, the “Why” often comes a lot easier than the “How”. And this is usually the case for most people when it comes to selling houses. You may have quickly determined that it’s time to sell your property and move on due to various circumstances that may have recently popped up in your life. Maybe you need to sell your house fast before moving because you need to break up the asset and split the profits due to divorce or because you’ve recently inherited a home that you have no intention of living in, or maybe even because you’ve simply lived in your house for many years and have determined that it’s time for a change. Whatever your motivations, selling a house isn’t simply as easy as making the decision that you need to. You’ll typically have to go through a process before it’s time to sign the contracts and collect your money. And that process starts with determining how to sell your house by choosing the correct sale option…
But when it comes to sale options, most people often forget that there are quite a few ways to skin that proverbial cat, instead automatically opting to hire a real estate agent. Now, while selling your house traditionally (with an agent) can have quite a few benefits, it’s also a complex process that requires quite a lot of time and money. As such, if you’d much rather try your luck with another method, it’s important to note that you do still have options.
In this blog, we are going to explore all the different ways to sell your house. We’ll outline the most common home sale options people turn to, then show you how to sift through this list and find your perfect match.
List of Common Home Sale Options You Can Use to Sell Your House
Below is a list of the most common home sale options that you can turn to in Minneapolis MN
When selling your house, it’s always important to explore all of your options. Why… well, the answer to that particular question is simple. The truth of the matter is that you never truly know what your best choice is unless you consider all of them, and selectively disqualify them. Maybe you may be a seller who’s looking to sell fast, so the 2-3 month waiting period associated with a real estate agent may not be your best bet. Or, on the flip side, maybe you’re a seller with all the time in the world who’s looking to snag the highest possible offer. If so, you’d be better served by hiring the best agent in town, as opposed to any other choice. However, you won’t know which category you fall under and what works best for you if you don’t consider all the options.
Below, we are going to list some of the most common home sale options you can turn to when selling your house in Minneapolis MN. This will cover all the most significant ways baby boomers sell their homes, as well as a few other sale methods you may not have previously heard of or known about. From this, you’ll see that each one of these sale methods is unique and has its own specific pros and cons. As such, one is bound to work better for you than the others, so consider those advantages/disadvantages carefully when making your final decision.
So let’s get started…
1. Real Estate Agent
Hiring a Real Estate Agent, who will then list a property on the MLS on your behalf, is the most common option that home sellers consider when selling their houses in Minnesota. To most people, this is a favorable option because it allows them to hire someone who will then carry out the bulk of the workload on their behalf. But it is always important to choose the best listing agent.
A Real estate agent will:
- Help you with all the paperwork
- Handle most of the marketing of your property
- Coordinate all of the scheduling with you (e.g. inspection dates, showing events, etc.)
- And oversee some of the legal aspects of your home sale
However, they will charge a hefty fee for services rendered, which is usually 6% of the sale proceeds. In addition to this, choosing this sale option comes with quite a few disadvantages. These include:
- Deep and Regular Cleaning (agents will require your house to remain in picture-perfect condition throughout the sale process)
- Unexpected and Inconvenient Showings
- Investment in their marketing strategy (e.g. posting ads on your social media and prepping your house for photoshoots to name a couple)
Finally, after all this hard work that you will have to do, the sale of your house is never guaranteed!
2. For Sale by Owner (FSBO)
The next option that you can consider is to list your house “FSBO” (For Sale by Owner). Choosing this sale method basically means that you (as the property owner and home seller) have opted to list your property and sell it by yourself. As such, all of your profits from the sales proceeds will remain yours. No Fees! No Commissions!
However, this particular sale option puts the full home sale workload on your shoulders, which can be quite a lot of added responsibility if you already lead an active and busy life. In addition to this, it will require you to have at least a shred of prior knowledge when it comes to real estate transactions. This is the case because selling your house “FSBO” without previous experience in the real estate market could result in rookie mistakes, most of which will have detrimental effects on your overall sale (if not land you in a lawsuit and various legal trouble). So if you choose this option, you’ll at least want to do a little research on how to sell your house for sale by owner.
3. Short Sale
Next up, we have short sale. A short sale is a home sale option that works best for homeowners that may be facing the threat of foreclosure. If you find yourself in a situation where you have an outstanding mortgage that you are failing to meet the monthly payments AND the house is worth less than you owe, opting for a short sale may be the best option for you.
With this particular sale option, a home seller will reach out to their lender and inform them of their desire to pursue a short sale (in order to forgo the foreclosure process). If the lender agrees, the property will then be sold to a third party for less than is owed on the owner’s mortgage agreement, and the proceeds of the sale will be used to square away any outstanding debts. While most banks may typically accept short sales as a means of getting a return on their investment (because acquiring a house through a foreclosure is less profitable for them), not all of them will be willing to overlook the balance.
4. Owner Financing
For regular home sellers, the next sale option is to sell your house through owner financing. This method of home sale is especially good if you are a local home seller who would like to increase his or her buyer base.
When most owners list their properties on the MLS (either by themselves or with a real estate agent), their advertising targets a specific type of buyer. These buyers are commonly known as traditional/retail buyers.
*Traditional/Retail Buyer Definition: These buyers tend to be people who are looking for a place to live for themselves and their families. As such, they will be prepared to pay the full market price (which is also known as the retail price) for your house. Typically, they will apply for a mortgage loan to purchase your property. For this reason, these buyers are exclusively limited to people who have good credit.
However, traditional buyers often come with a slew of issues, the largest one being that deals with them have the potential to fall through. These types of buyers are dependent on their mortgage loans, and whether their bank approves them. As such, if their bank doesn’t approve their loan, a deal with them will automatically fall through. (We’ll talk about this a little more in Chapter 9)
But through owner financing, you can avoid all of this. With this particular sale option, you (as the homeowner) will become the bank. Your seller will pay a deposit, then follow that up with regular monthly payments until the full value of your property has been paid up, which usually happens years later.
5. Mortgage Transfer
Another home sale option that you can consider (that could be a potential solution if you find yourself struggling to pay your mortgage payments) is to transfer your mortgage. With this method of home sale, either a homeowner or their lender will transfer a mortgage agreement from a current owner to a new individual or entity.
Through an agreement such as this, the terms and length of the mortgage will not be altered once the transfer is complete. As such, the buyer will only be left with any outstanding payments that the initial owner may not have met before they can officially assume the property from the bank.
Overall, this home sale method is a great option for people who are trying to avoid foreclosure. However, it may not be as practical for regular buyers who are simply looking to sell their properties at the highest price, and within the shortest timeframe.
Next up, you could put your property up for auction. With this home sale option, a property is put on an auctioneer’s roster and sold to the highest possible bid during an auction.
This method of home sale predominantly appeals to owners who may find themselves facing the threat of foreclosure. However, it is also a desirable choice for regular buyers as well. Auctions allow you to sell your house fast. They can help you sell your house by a defined date. In addition to this, selling via auction can help you avoid paying steep agent fees, while not requiring you to do any work.
However, like with almost everything else, auctions do have their downsides. These include the fact that your buyer base is reserved to the people that show up on auction day. In addition to this, many other properties will be sold alongside yours during the same auction. As such, your property’s value may decrease by comparison. Plus, you should never forget that you’ll still be required to pay an auctioneer’s fee, which can be quite steep. For these reasons, it is very important to thoroughly think through your decision before deciding to put your house up for auction.
7. Sell to FastPath Home Buyers
And last but not least, we have selling your house to FastPath Home Buyers. If you are determined to find a quick buyer, selling to a local home buying company such as us here at FastPath Home Buyers, is a good option for you. We buy houses in Minneapolis and throughout its surrounding areas in Minnesota. Specifically, we target sellers who need to sell fast.
If you’re looking to get the full market retail value on your home… and you have time to wait for up to 3-6 months and pay an agent’s commission, we might not be the best option for you. But if you need to sell your house fast and are willing to sell it for less than the full retail value without having to pay any commissions or added fees, we’d like to make you a fast-fair offer on your house today.
So there you have it. There is everything you need to know about how to sell your house in Minneapolis MN.
More Questions? Maybe you’d like to analyze the 3 main ways to sell your house? Or maybe you’d like to know how to sell your investment property when tenants aren’t paying? Whatever your questions, feel free to contact our company either by calling (612) 351-2384 or by filling in your details in the short form below.