autumn house Pros and Cons of Selling a House in the Fall

The Pros and Cons of Selling a House in the Fall

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You may have heard spring and summer are the peak times to sell a house. Real estate is busy during those seasons, and the housing market cools down in the fall and winter. Still, this is not a bad time to list your property. Here are the pros and cons of selling a house in autumn.

Advantages

1. Buyers Are Serious

Buyers who missed out in the spring and summer are highly motivated to find a place in the fall. Whatever their reason – corporate relocation or the start of school – they are eager to buy and move in quickly.

2. Less Inventory

A lot of properties sell in the spring and summer, so the number of houses for sale dips in the fall. Your property, then, may stand out amidst the competition.

3. Weather is Nice

Touring houses and moving in the summer is a hot venture, sweaty too. The weather cools down in the fall, making buyers more comfortable during walkthroughs. Moving is also less taxing, and road conditions are still safe before the winter snow and ice.

4. House Shows Well

Autumn is a beautiful season. The changing leaves, seasonal flowers, and any fall décor you add enhance the curb appeal of your house. Staging the front door is easy, and aside from raking and bagging leaves, the natural beauty of your front yard will do the rest.

5. Settle into Your New Home Before the Holidays

Eager buyers plus low inventory can add up to less time your house spends on the market. Assuming a buyer makes a fast offer, and you close right away, you’ll be able to move into a new house before the holiday season.

Disadvantages

1. School is Back in Session

Fall is the school season, and moving your kids between school districts is hard enough without it being during school. Showings are also difficult if your children are home schooled.

2. Fewer Buyers

The majority of buyers found their new home in the spring or summertime, so there are not many left shopping the market. Getting their attention may be difficult, and you’ll have to compromise on some things, like the next point. 

3. Lower Your Listing Price

As eager as buyers are to purchase, they know sellers are just as eager to offload their properties. So they look for lower listing prices or negotiate with sellers to pay less.

4. Time is Brief

Besides the start of school, there are the fast-approaching holidays, starting in October with Halloween. Selling a house and moving during the holidays is a nightmare, so you want to sell in the early fall months.

5. Curb Appeal (Can) Diminish

But wait: did I not say fall enhances your curb appeal? I did. To clarify though: this condition depends on where you live. In some parts of the country, the weather shifts rapidly, and foliage loses all its leaves and snow falls early.

Sell to an Investor

If you want to sell fast, before school or the holidays start, consider selling to a real estate investor. Most investors make a cash offer for a property “as-is,” no repairs or renovations necessary.

Investors do not require mortgage approval, or traditional sale warranties and inspections. They pay all closing costs and additional sale fees, actually saving you money. And they let you choose the closing date, which can be in a month, 15 days or less, giving you time to pack and move out.

wad of cash seller financing versus lump-sum payment

Lump-Sum Sale vs. Seller Financing

Home » pros and cons


Seller financing (or owner financing) is an option to consider if you’re a landlord with rental property. It means the seller finances the purchase for the buyer. Rather than give them a loan, you extend a line of credit to cover the purchase price, minus the down payment. The buyer, then, makes installment payments.

There are three types of seller financing:

  • Free and Clear: The seller owes nothing on the property and sells it for monthly payments.

 

  • Wrap-up: The buyer procures the title but takes the property subject to the current home loan, which stays in the seller’s name. So the buyer makes monthly payments on the seller’s existing mortgage.

 

  • Contract for Deed: The seller holds onto the title till the purchase balance is paid off, similar to a rent-to-own agreement.

Seller-financing deals tend to be short-term. Whichever type of seller financing you choose, there are two key steps you need to take before agreeing to anything:

  1. Run a credit check on the buyer to discover their debt and payment history.
  2. Draw up a promissory note, stating the interest rate, payment schedule, and consequences of buyer default.

With only two parties involved, minus a bank and its strict lending requirements, seller financing is a quick, profitable way to sell your rental property. Let’s take a look at the advantages and disadvantages of seller financing.

Advantages of Seller Financing

  • Can sell “as-is”: No costly repairs, renovations, or maintenance are necessary. You can sell the property in its current condition “as-is.”

 

  • Higher sales price: When an interest rate is agreed upon, you make more money as the buyer pays off the purchase price.

 

  • Retain title: In the case the buyer defaults, you keep the down payment and any money paid on the house.

 

  • Continuous income: Similar to a rent agreement, seller financing gives you a steady source of income.

 

  • Less work: When you transition from landlord to lender, you have less responsibilities with the property.

 

  • Tax advantage: The IRS recognizes an installment sale as a way to defer capital gain. You can spread out your tax liability over several years instead of paying 100% of the tax in the sale year. It also makes it easier to offset the gains.

 

  • Sell faster: Without need for mortgage approval, you can sell and close faster.

Disadvantages of Seller Financing

  • Buyer uncertainty: If a buyer defaults or refuses to make payments, you may have to initiate the foreclosure process, depending on your agreement with the buyer.

 

  • Abandonment of sale: If you accept a smaller down payment, the buyer may later abandon the sale because a small investment is at stake.

 

  • Repairs: If you take back the property, and there are damages, you may be responsible for repairs, depending on your agreement with the buyer.

What is a Lump-Sum Sale?

A lump-sum sale is a one-time payment for the total amount due, rather than that payment be broken into smaller installments. This is a better option for homeowners trying to sell their primary residences. With a lump-sum sale, capital gains is not so much an issue as it is when selling rental property.

Selling to an Investor for Cash (or via Seller Financing)

Real estate investors will pay cash for properties in any condition. These properties can be a primary residence or rental property, and be damaged, neglected, or have bad tenants. In fact, if you have tenants, only an investor will purchase your property, so you can skip listing and keep the 3% to 6% commission you’d pay a realtor.

If your goal is also to avoid capital gains, seller financing is a great option. We screen investors to avoid scams and frauds. You can request an offer on your property, and we’ll pull offers from trustworthy investors, guaranteed to have the financial backing to pay you.

If you have any questions about investors, we have the answers.

pros and cons of selling a house in the spring

The Pros and Cons of Selling a House in the Spring

Home » pros and cons


It is often said that spring is the best time to sell a house. Indeed, March, April, and May are the most profitable and speediest months to sell property, in most markets. Every season has its pros and cons though. Keep these factors in mind if you intend to sell this spring or next.

Positives

1. Bidding Wars

In spring, buyers flood the market and competition is fierce. When several buyers are interested in a property, this sparks a bidding war. You then evaluate and choose the safest, sweetest, and fastest deal. Better still, if buyers continue to outbid each other, you stand a better chance of selling your house at or above its asking price.

2. Quick Sales

Spring sees a lot of action in real estate, and houses do not stay on the market long. Buyers want to close before the end of the season. This gives them the summer to move, when the kids are out of school and the weather is still decent. Their desire to close fast increases the likelihood that your house will sell sooner than later.

3. Curb Appeal

The sunny days and longer evenings trigger buyers to schedule several walkthroughs a day. When they drive up, the first thing they see is the exterior of the home. Assuming you take good care of the yard, spring brings lush grass, fresh foliage, and flowers in bloom. This enhances the look of the house and makes a great first impression on buyers.

Negatives

1. Competition

Competition in the spring market is fierce for sellers too. You compete with all the other houses for sale on the market. Thoughtful staging and constant cleaning helps your house stand out during walkthroughs. However, a house that needs repairs or is behind in maintenance, or maybe outdated, is often passed up by buyers.

2. Everyone is Busy

You are in a rush to sell. The buyer is in a rush to close. Any professional involved in real estate is going to be busy. This means there are tight windows for inspections, appraisals, and mortgage dealings. There is no time to drag your feet. If you get three offers on your house, choose a deal quickly and get the ball rolling.

3. Picky Buyers

Buyers are aware of the competition and how desperate sellers are to sell a house. They can, therefore, afford to be picky and make demands. They can ask you to make repairs or provide other incentives. Incentives include paying a portion of the closing costs, or the first year of a home warranty.

Sell to an Investor

If you want to forgo buyer negotiations, repairs and incentives, consider selling to an investor. Most investors will make a cash offer on a house regardless of its conditions. There are also fewer steps when selling to an investor. You can enjoy a quick closing and move out before the spring season is over.

solid offers sell house during winter

The Pros and Cons of Selling a House in the Winter

Home » pros and cons


Often people think spring is the best season for selling a house or even summer, but actually, you can sell a house any time of year. Selling your home during the winter may have its drawbacks, but it also has its advantages.

Pros of Selling

Pro #1: Serious Buyers

The large flow of buyer traffic in the spring and summer consists of many window shoppers – people who are getting a feel for the home market, browsing home types, and decorating ideas. In winter, buyers tend to be more serious. If they make appointments to view the home during what is perhaps the busiest time of year, when daylight hours are short, that shows promise.

Pro #2: Less Competition

With so many sellers thinking spring and summer are the best seasons to list a home, you have less competition during the winter holidays. Less competition means you get more showings and interest from serious buyers.

Pro #3: Enjoy a Quick Closing

Buyers who shop in November and December are highly motivated to make a deal and close before the New Year so they can enjoy tax benefits, including deductions from their mortgage interest and property taxes. Other times, if a buyer is relocating, they want to buy fast to get the most out of their corporate relocation package.

Cons of Selling

Con #1: Less Than Ideal Weather

Cold, wet, maybe even icy or lots of snow, winter has the weather that bribes folks to stay indoors. Buyers are less eager to drive out to look at homes in winter. Road conditions can be hazardous, and after Daylight Savings Time, you lose two to three hours for showing your home. Also, your winter-stricken yard loses its curb appeal with bare trees, less greenery, and a blanket of white.

Con #2: Buyers Have Other Financial Obligations

Winter holidays are a busy and expensive time of year. First comes Thanksgiving, and then it is Christmas or Hanukkah, or Kwanzaa. Buyers may have their money tied up in other things, like holiday gifts, food, and travel.

Con #3: Showings Take Effort

You have to keep your home neat and tidy during showings, and this can become more taxing during the winter holidays. You have to be light on holiday decorations so as not to overwhelm or clutter the living spaces. If family is visiting, you have to constantly clean up after them and try to get them out of the house for showings. You might be skittish about leaving out presents and constantly hide them in closets during showings and pull them back out after buyers leave.

If you want to sell your home fast for a cash offer and enjoy the winter holidays, consider selling to an investor. Investors do not mind cold weather, holiday decorations, or crowded homes. You can enjoy a quick closing and get back to what really matters during the holidays.