The Key to Selling Fast in New Jersey

Some people need to sell their homes quickly. They may be relocating for a job and need the money to put down a down payment elsewhere. Some may be dealing with financial hardships and need to downsize immediately or they’re facing impending foreclosure. There may be a medical or family emergency that’s pressuring them for available funds.

Whatever the reason may be, these people don’t have the time, and usually neither the headspace, to let their houses sit on the market. 

So what is one to do when seeking to sell his house quickly?

Listing a House as an All-Cash Deal 

Firstly, people seeking to sell their home quickly should consider putting it onto the market as an all-cash deal, at a slightly reduced rate, say 10% less than market value. This does not mean selling directly to cash-buying companies. This means putting it out on the open market through a listing that conveys it is for anyone (end-buyers, cash buyers, investors) who can buy it fully in cash, sans mortgage, loans, etc.  

In doing so, it is important when hiring a listing agent to seek out agents who have experience working with investors and not only with end buyers. Real estate agents who have relationships with investors can often bring an investor on board within days of listing, who is willing to pay the asking price or within close range. One good resource for looking up investor-familiar agents is on Biggerpockets.com. When interviewing an agent, make sure to ask them if they work with investors too and not just end-buyers.

Listing your home on the market as an all-cash deal can spur an agent with the right experience to bring a suitable investor on board quickly with an on-target offer.

Two Categories of People Looking to Sell Fast

Diving deeper, people seeking to sell their homes quickly can be divided into two categories: 

1. People who are desperate to sell quickly, and their property is in good or decent condition. 
2. People who are desperate to sell quickly, but their property is in dilapidated condition and in need of significant repair. 

The first group – those who have a decent property on their hands can try the method described above: listing the house on the market as a cash deal with an agent who has experience working with investors. They would list the price about 10% lower than market value, so that a $300,000 house would be listed for $270,000. The seller should be willing to absorb the $30,000 loss in exchange for selling his property quickly, for a full cash amount. A competent agent who has experience with investors may find an investor with a suitable offer fairly quickly.

However, people in the second category, those who have a dilapidated or neglected house that they want to sell immediately will need to face the fact that they need to reduce the price significantly more than 10%. This is where cash buyers are a good option. Since cash buyers’ expertise lies in transforming dilapidated homes, they are not scared off by a house in disrepair. However, since the home’s value is obviously much lower than the market due to its state and since cash buyers need to earn a profit, it is only natural for there to be a bigger reduction in price.

A seller who is in a rush to sell a property in good condition may get a suitable offer quickly if they price it around 10% below market value. But a seller with a neglected property needs to face the fact that he will need to reduce the price significantly more.

The Key to Selling Fast: Be Honest with Yourself

The key here is, to be honest with yourself. Often, sellers are unrealistic. They fool themselves into thinking their house can be sold for a higher price than actually possible. Only after seeing their house sit on the market for a while, do they realize they overpriced it and at that point, they may need to reduce the price more drastically than if they were to price it accurately from the start. In Investopedia’s words: “Do your research and set a realistic price.”

Sellers should know this rule: After 30 days on the market with little activity, it’s time to lower the house’s price in order to prevent it from further fermenting on the market until the 60-day mark, at which point, a house needs further reduction. To quote an article in Orchard.com, “In October 2022, homes that were on the market more than 120 days reduced their prices by an average of 15.8%, according to Lawrence Yun, Chief Economist for the National Association of Realtors.”

So, if you convince yourself that the shabby carpet, outdated kitchen, broken plumbing pipes, leaking roof, and moldy basement are not THAT terrible, you are probably not being honest with yourself. Your property may sit around for a long time, inevitably bringing the price lower and lower. Be honest, admit your house’s flaws (and perks!), and price it accordingly. This way, you won’t have to go through months of waiting and painfully watching its value further erode.

People who are honest with themselves and price their house accordingly will have a faster and smoother journey to closing.