Although buying a home is typically a good investment, you can’t always be sure that your home will increase in value over the years. While the market largely dictates your home’s resale value, there are a number of factors that actually determine what your property is worth.
If you find that your house is decreasing in value, now may be the time to sell your house as-is for cash – especially if its value falls below the balance on your mortgage. Below, we look at what you can do to sell your house fast in Detroit, Michigan if it’s suffering from negative equity.
4 Signs Your House Is Losing Value
Regardless of what you believe your house is worth, its only true value lies in what someone else is willing to pay for it. So, if your house has issues, that’s a sure sign that your expectations may be too high. There are some ways you can tell that your property value is on the decline.
1. You Can’t Find a Buyer
If you are trying to sell your house, but it’s been sitting on the market for too long, it may be a sign that your price tag is too high. Or, it could be that buyers simply aren’t interested in it. There could be several reasons for this: bad location, issues with the house, legal action against the property, or a poor real estate market. Whatever the problem, buyers are skipping your house.
2. Your House Is Outdated
A property’s market value is only as good as its viability in the current market – not the market 30 years ago at purchase. If it’s been a while since you’ve made any home renovations or upgrades to meet building codes, your house may look worn out to prospective buyers. Even if your house is in good condition, if it looks outdated, you’re not likely to get what you want for it.
3. Your Competitors Aren’t Selling Either
You may have the best house on the block. But if the block isn’t selling, neither will your house – at least at the price you are listing it for. One of the reasons why HOAs (love them or hate them) exist is to ensure that everyone maintains their property. Once a few houses in the neighborhood go into decline, it affects the other properties. This may be the case with your house.
4. Your House Took a Hit
One of the most difficult properties to sell are homes that have been damaged by a natural disaster, fire, or vandalism. Trying to sell your damaged house on the market without first making repairs is a nearly impossible feat. It can be done, but you typically have to lower the price significantly to the point where you attract the vultures – buyers who try to take advantage of you.
Can I Still Sell My House If It Has Negative Equity?
Yes, you can still sell your house if its value drops. However, you may not be able to get what you want for it on the market. A cash sale from a company that buys houses in Detroit, Michigan, doesn’t guarantee that you can sell your house at the preferred price either. What’s the difference?
The main difference is that you still have to pay for numerous expenses in a traditional sale. So, you not only lose from a declining home value. You also lose money paying for repairs, inspections, realtor commissions, and closing costs. At least with a cash sale, you can sell your house as-is and avoid these expenses.
Will I Still Get a Fair Cash Offer for My House?
Companies that buy houses are often vilified in the real estate world as buyers who try to lowball you and take advantage of your situation – in this case, a house with a low market value. However, lowballing doesn’t bode well for home buyers for too long. The word gets around, and the company soon shuts down because of a bad reputation.
While it is true that buyers look for lucrative deals, the ultimate goal is to create a win-win for both the buyer and the seller. As such, the buyer will appraise the current market value of your house and make a fair cash offer. If you feel that the offer is too low, then you are free to reject it or negotiate. An honest buyer will never pressure you to sell your house.
Get a Fast Cash Offer from M1 Home Buyers
If your home’s value has dropped and you want to get out of your property or mortgage, we can help. M1 Home Buyers can make an offer on your house and close the sale in as little as seven days. We buy houses as-is in Detroit, Michigan. Call 248-397-5800 to get a fast cash offer.