There are two things people want when they sell a house in New Orleans. They usually want to sell their house fast and they usually want to sell their New Orleans house for top dollar. The problem is those two things rarely happen together.
See, most who sell New Orleans property will use the traditional route and list their house with a real estate agent. This can require many months or even years of waiting. Other will try to use For Sale By Owner (FSBO) but that can end up being a bad idea.
There are three other ways to sell their property. These provide an opportunity for them to sell New Orleans property both fast and for top dollar.
There are a few home buyers that have the cash available to buy your house outright. More commonly though, a home buyer will borrow most of the funds needed to close the purchase.
The buyer will typically borrow from a bank. Some may need to get the funds through private or hard money lenders. Either way, borrowing from a lender requires upfront costs to a buyer to pay for things like appraisals, inspections, points, and processing fees. These cost of borrowing can be high so it limits how much the buyer is able to pay.
Instead of making the purchase contingent on a lender providing the funds, the owner can finance the transaction. This gives both the buyer and the seller more flexibility when coming to an agreement that works for both sides. This can be a good option for a seller who owns the house free and clear without an underlying mortgage; especially if they don’t have an immediate need for all of the cash.
Contract for Deed
A Contract for Deed is known as Bond for Deed when you sell New Orleans property. It is similar to owner financing using a private note. The big difference is that title does not pass from the buyer to the seller. The title transfer takes place at a second closing after the terms of contract are met.
This method is used if there is a mortgage on the property. A third party escrow or note servicing company will collect payments from the buyer and send payments to the mortgage company. A disadvantage for the buyer is that they are not able to a file a homestead exemption for property taxes.
This method is a contract and not a credit sale. If the buyer breaks the terms of the contract, the seller can cancel the contract without going through the New Orleans foreclosure process.
A Lease Purchase is similar to renting a property with a few key differences. The tenant buyer will get an option to purchase the property for a certain amount of time. This option gives them the right, but not the obligation, to purchase the property at a later date.
The difference from a typical lease is that the tenant buyer will take care of property maintenance so you won’t have to worry about getting phone calls saying that the toilet is clogged. If the lease terms are broken, the seller will have to go through the eviction process like they would for any other tenant.
The great thing about a lease purchase is that the tenant buyer will be highly qualified and have a financial stake in the house. They will have a home owner mindset rather than a renter mindset. All they need is a little time to be in a position to buy the house using conventional financing from a bank.
This can be a good option for a seller who has already bought a new house and has little to no equity in the property. They most likely can’t even afford to pay the costs of selling and will prevent them from having to make two mortgage payment.
Which Is Best to Sell New Orleans Property?
So what is the best way to sell a New Orleans house for top dollar? As with most things, the answer is that it depends. There are many factors involved dependent upon each individual’s situation.
At Fairview Home Buyers, we can work with sellers to provide several different options. Contact us today to receive a fast cash offer to sell your house and create the best possible outcome for you. We can also give you some other options if the cash offer isn’t a good fit which will help net you more money in the end.