To understand the selling process, it’s important to understand the housing market, supply and demand and how you can get the most cash for your property. Our guide to selling your house fast in Dallas provides all the information you will need if you’re looking to sell your house. We understand that the economy fluctuates, that’s why we provided information on what to look out for when markets change. Our guide breaks it down step by step, so you’ll have all the information you need before you sell your house.
1. How To Position Your Property in the Dallas Real Estate Market To Get The Most Cash
The value of your house depends on the recent sales in the sales in the neighborhood, the finishing touches and condition determine where it will be placed on the dollar value range. As the house markets change in Dallas, so does the value of your house. To get the most money for your property, you first have to pass the inspection process with these home improvement tips. Some examples include:
- Patch holes and cracks in walls and ceilings.
- Fix all broken appliances and HVAC systems.
- Repair leaky faucets.
- Replace worn or stained carpeting.
- Repaint dark or marred walls with neutral paint (not white).
- Replace broken window glass.
- Repair the roof.
- Change out any dated light fixtures/ceiling fans.
- Replace old drapes and window coverings.
- Fix code violations.
These home improvement tips will help you pass the inspection process. However, if you want to increase value on your home try upgrading the following:
- Kitchen countertops
- Bathroom fixtures
- New lighting
- Bar Area
2. How to Successfully Sell Your House By Knowing Your Selling Options
There are three selling options you could take when selling your house fast in Dallas:
- Using a realtor
- Using an investor
- Selling it yourself
All these options also depend on how much time you have on your hands. Selling the house yourself could take more time than using an investor or realtor. If you sell the house yourself, you have to go through the hassle of filling out extensive paperwork and understanding all the terms and conditions that are otherwise taken care of by an investor or real estate agent. Whereas if you use a realtor or investor, they understand what the fine print contains and they can help you navigate around hidden fees as well as unqualified buyers.
Going through an investor can sometimes be a waste of time if they don’t have the funds to buy the property. Selling the house yourself requires not only researching the housing market but also interest rates and loans etc. However, if you have the knowledge and time on your hands, then selling your house yourself might be a good option for you!
Going through a realtor and having an agent saves you lots of time and energy. Realtors have the knowledge of the housing market and the tools to get you the right value for your house. For example, a realtor does all the work, from taking pictures of your house to putting it on the market, to negotiating the price for you to make sure you get the value you were looking for. However, realtor fees can be costly and can also take lots of time. One thing to keep in mind is that realtors market to buyers and investors are the buyers.
If you’ve recently gotten divorced or had a death in the family and are looking at selling your house fast in Dallas, going through an investor is your best bet because they are quick to close the transaction period. They inspect your home and take it off your hands within two weeks with a cash offer. Investor’s give you a breakdown of how they came up with the valuation of your house by using reverse engineering. For example, if your home is worth $200k and they offer you $150k, investors will break down all the costs and details of how they reached $150k for the value of your house, taking in account all repairs, fees, etc. Using an investor may not always get you the best value for your home (not always the case), but are best to use if you have an urgency to sell.
All three options have pros and cons, depending on your urgency and knowledge of the housing market think about which route you want to go (sell it yourself/use a realtor/use an investor).
3. Why Selling Your House at The Right Time is Important
With interest rates changing monthly, it can get crucial to pay attention to increases and decreases. To find what the interest rates are today, go to google and type in “interest rates today” and you’ll see the following:
When you’re selling your house fast in Dallas, you have to think in the shoes of your buyer. Here you can see that interest rates right now are up to almost 5% which is a lot. For example, if you’re a buyer and you try to buy a house with a loan for $150k, your interest rate will be $7,500 ($150,000 x 5%) a year and $625 monthly. If interest rates are high, there will be fewer buyers in the market which means the price for your house will drop. It’s all about supply and demand, if the need for buying a home is low, the costs will also decrease.
Think about this example you may witness when you go shopping. If you buy winter jackets in the winter, the prices will be high since demand is high (everyone is purchasing winter clothing to get ready for the season). However, if you buy your winter jacket when the season ends the prices will be lower since the demand is low (everyone is getting ready for the spring). That’s why you might see lots of sales after winter season because all stores are trying to get rid of the last season’s clothes. Supply and demand!
You might also see this trend when you’re looking for an apartment to rent. Prices are always high in the summers because that’s when people have the most time and kids are out of school. The best time to rent is in the winter because people are less likely to move during the holiday season. Prices drop drastically because leasing managers are trying to fill up all the remaining empty apartments.
4. Knowing What Your House is Worth
Everyone’s first instinct when they try to find the value of their house is to look on Zillow immediately. However, Zillow does not provide an accurate understanding of how much your house is worth. Zillow directly looks at a street of houses and clusters them together based on a price of what they should all be. For example, House A might be 600 sq ft larger than House B and Zillow will still list both properties for the same price. In other words, Zillow estimates the price of the property based on how much all the houses should be worth in a particular area rather than narrowing down the cost based on square footage and finishing touches.
If you go through an appraiser, they have tools they use to check how much your house should be worth accurately. Rather than guesstimating how much your home should be worth in that area, appraisers provide ranges based on sq footage to give a more accurate depiction of the value of your house.
5. Hidden Fees to be Aware of (unless you like losing money)
If it’s your first time selling your house in Dallas, there are a few things you should look out for in the process. The first one being title fees. The title means the owner of the house, the person who has a claim on the property. When there is a transfer in the title, that means the ownership is transferring from owner to buyer. This process can get tricky if there are liens involved, a lien is a cost you may have incurred that are under your name (mechanic payments/mortgage payments/taxes)
For example, if you have a lien under your name (mechanic payments) that you haven’t paid off, that can halt the transfer of title process. It’s essential that you get all your past expenses taken care of at the time of closing to ensure a clean title is being transferred which is necessary to get a title policy. However, the seller doesn’t produce to pay the lien, but they need to understand that those costs will be deducted from their proceeds at the time of closing. The title company ensures that you have a clear title before your transfer to the buyer. It’s like having a clean slate and clearing all payments before you give your property to your buyer. These fees are essential to pay attention to, because someone may have put a lien on your house that you may not be aware of.
Another hidden fee can be in your terms of agreement when signing on with a realtor or investor. Pay attention to closing cost fees when signing your agreement. These fees can be easily missed in the contract your realtor or investor hands you. Closing cost fees can be anywhere between 6 to 9%, which can be a big chunk of your house is high in value. Buyers ask for seller concessions which drives the seller’s net amount down. A seller concession is a buyer requesting a seller for financial assistance for the buyers closing cost since most of the fees originate from the lender originating the mortgage loan for the buyer.
Another fee/negotiations are done during the inspection process. , but the inspection report is a tool for bargaining by the buyer. Every negative item that the inspector notates is an angle used by the buyer to get that item repaired (cost for the seller) or get the price reduced (cost for the seller). A lot of deals don’t make it past the inspection period because the seller and buyer can’t agree on repairs or price reductions.
6. Understand The Selling Timeline
The timeline for selling your house fast in Dallas depends on if you go the cash buyers vs. realtors route. Going the cash buyer option (investors) can save you lots of time taking only up to 2 weeks. Whereas going through a realtor can take up to 45 days if the buyer of your house has to take out a loan. Loan approval processes can be lengthy – taking up to 2 months. The cash buyer route only needs approval on the transfer of title process which takes 10-14 days.
7. What You Can Do to Sell Your House Fast in Dallas
If you want to sell your house fast in Dallas, going the cash option route is the best if you have an urgent need to sell. If you have time and market knowledge, you could take the option of selling your house yourself, but be cautious about paperwork and hidden fees. It’s always important to research your interest rates and the housing market to understand your supply and demand and put yourself in the shoes of your buyers.
Now, we’ll turn it over to you. What are some questions you have for us? What other tips do you think could be useful when selling your house fast in Dallas? We’d love to hear from you, comment below!