If you’ve found yourself saying, “I can’t sell my house in Metro Detroit MI,” this article is for you. Maybe you’ve been trying to sell your Metro Detroit house for a while now and haven’t received any offers, don’t panic! You still have a few options at your disposal to help you sell your house for a fair price.
You’ve probably already tried the first one at least once: Lowering the asking price.
Everybody wants to sell their house for more than they paid for it but if housing prices in your area are low, the economy’s not doing well, or your home has some sort of structural or locational problem, you may have to reduce your asking price.
What are my options if I can’t sell my house in Metro Detroit?
Here are five other things you can try when you can’t sell your house in Metro Detroit:
1) Take It Off the Market
You may be trying to sell your home at a bad time, such was when there are a lot of other houses just like yours on the market, during the winter months, or during the holidays.
If this is the case, you might be best served by taking your home off the market for a few months – if you can afford to keep paying the mortgage – and wait until market conditions improve.
2) Take Out a Second Mortgage
If you have built a lot of equity in your home, you may want to take out a home equity loan — if you can afford to pay the higher monthly payment, that is. If not, you may be able to renegotiate a loan modification plan with your lender or convert your adjustable rate mortgage into a fixed-rate mortgage that has a lower interest rate. The loan can be used to fund other things, including real estate investments.
3) Rent Out Your Home
Renting out your home as an alternative to selling can indeed be a savvy move, especially if you’re facing challenges in selling your property or don’t want to carry the financial burden of two mortgages. Here’s a breakdown of how this strategy can work:
- Generating Rental Income: By renting out your home, you’re essentially converting it into an income-generating asset. The rent you receive from tenants can be used to cover your monthly mortgage payment, effectively offsetting the financial strain of owning two properties simultaneously.
- Minimizing Additional Expenses: Unlike purchasing a new property, renting out your current home doesn’t typically involve significant additional expenses beyond the upkeep, maintenance, and repairs. These costs are part of being a landlord, but they can be offset by the rental income you receive.
- Avoiding Financial Strain: Holding two mortgages can be financially burdensome, particularly if your old home takes longer than expected to sell. By renting out your home, you’re alleviating the pressure of making two mortgage payments each month while still retaining ownership of your property.
- Flexibility in Market Conditions: Renting out your home provides flexibility in timing the sale. Instead of rushing to sell at a potentially lower price due to market conditions, you can wait for a more favorable selling environment while still benefiting from rental income in the interim.
- Building Equity: Every month that your tenants pay rent, you’re effectively building equity in your property. This can be advantageous in the long term, as you continue to pay down your mortgage and potentially increase the property’s value over time.
However, it’s essential to consider potential drawbacks and risks associated with renting out your home. These may include:
- Tenant Issues: Dealing with tenants comes with its own set of challenges, including finding reliable renters, handling maintenance requests, and addressing potential conflicts.
- Market Volatility: Rental markets can fluctuate, impacting your ability to secure tenants or command desirable rental rates.
- Property Management: If you don’t have the time or expertise to manage the property yourself, hiring a property management company can eat into your rental income.
- Legal and Financial Considerations: Renting out your home entails legal obligations and financial implications, such as tax implications, insurance requirements, and compliance with landlord-tenant laws.
Before deciding to rent out your home, it’s crucial to weigh these factors carefully and consult with real estate professionals, financial advisors, and legal experts to ensure it aligns with your financial goals and circumstances
4) Consider a Short Sale
“I can’t sell my house in Metro Detroit because I owe too much!” This can happen if you purchased your home within the past few years and currently owe more than the home is worth (called being upside down).
In some instances, you can negotiate with your lender to accept less than what you owe on your mortgage. If it looks like the other option is foreclosure, your lender probably will accept a short sale.
To do this, you’ll need to have a buyer on board who can close quickly. Fortunately, we can! Give us a call today at (248) 949-1224 for a no-hassle offer on your house.
Keep in mind, however, that short sales can affect your credit. Redeeming a pre-foreclosure on your credit history might disqualify you from getting another mortgage, at least for a little while.
5) Offer a “Lease to Own” Option
A lease to own option is when you rent your house to somebody with the option to purchase your home at or before the lease expires. This is a good option if you can’t find qualified buyers because you can collect rent plus a lease option fee from a tenant while giving them time to save up for a down payment and establish their credit so they can get a mortgage to buy your home down the line.
You also can add a lease premium to their monthly rent that can either be applied to the down payment later or – if they don’t end up exercising their option to buy your home – you can keep it as income.
I Can’t Sell My House in Metro Detroit MI!
If you are interested in learning more your options for selling your home in Metro Detroit MI, call us at (248) 949-1224 or fill out the form on this page to get more information sent to you right away.