June 7, 2014
If you are selling a distressed property it can mean either one of two things, you are a borrower who has failed to pay off their loan and has just received notice of default from the lender and wish to sell your property yourself, or you are a lender that wishes to sell of a property that did not mature it’s loan, or perhaps you are a businessperson who deals in tracking down distressed properties and selling them to people who either wish to buy such properties for business purposes or for personal purposes.
The important thing you need to understand is that there are different types of buyers for distressed properties.
People who wish to move into a bigger house but can’t afford to buy a completely new house, and would not mind minor damages and repairs, such types of buyers are usually the best kind to deal with, they are out looking for a good bargain, and will understand a good deal when they see it, the will be a but pressed to make purchase because of their needs so they won’t haggle for it because they will need to buy soon, trouble is tracking these people down. Usually homeowners like this who wish to go into a bigger home but can’t really afford it spend their time searching for good deals online.
Try to be where the people who search for distressed property usually end up. Post your property on craigslist. Find bank websites that allow for listings and post your property there, as well as portals on yahoo and Google, these all will come handy in building up exposure of your property, be sure to state asking price, and make sure to keep a margin for negotiation, go list your property with private listing services, as well as government listings, also if you feel comfortable enough hire a real estate agent, they can use MLS to give your property quite strong exposure.
There are loads of ways to approach your target buyers, best way is to constantly self promote online that’s usually the best way, make a target to create at least 2 to 3 listings per day on various portals, you’ll be contacted soon enough and lots of people look for a good deal, and distressed properties if they are in a reasonable location actually sell off quite quickly.
As soon as you start posting around to find buyers, you’ll be contacted by distressed property Businessmen and refurbished property Businessmen, these people are professionals when it comes to getting the best price out of you so remember never say yes when you’re pressured to sell, because when you do get your notice of default you are quite pressed to sell while you still have ownership of your property, these buyers have low attention spans, and if you really are willing to deal with them , remember they don’t hold around for long, so only agree to the sale if you really have not received any other alternative.
Make sure to keep the terms firm and clear, ask for proof of purchaser’s ability to proceed, the clearer the terms the least ambiguities and confusions the easier it would be for you close the deal.