You may be thinking of selling a house or condo fast in Ontario, which is likely your most valuable asset. Selling a home is stressful enough, but when you have a short amount of time, the level of stress can be overwhelming. In addition, the traditional method of selling a house is slow and expensive, and many people are not familiar with the alternatives.
In general, there are a few ways to sell your property, list with a real estate agent, private sale, and selling to a Cash Home Buyer (such as Mortgage Broker Store).
It is easier to sell a house quickly when house prices are rising, and there is little inventory on the market. Ontarian homeowners are fortunate since this has been the case for over a decade. According to CREA, Ontario home prices increased around 30% from 2020 to 2021, with inventories at record-low levels.
Reasons To Sell Your House for Fast Cash
There are many reasons why a property owner would like to sell their home quickly for cash. Every situation is unique, along with specific reasons for selling the property right away. Let’s look at some of the most common reasons.
- No real estate commission
- Power of Sale
- Foreclosure by Lender
- Buying Another Property, Relocating
- Land Tax Sale
- Sheriff Evictions
- Inherited Property To Sell
- Financial Difficulty
- Behind On Payments
- Property Tax Arrears
- Divorce, Separation
- Avoid Home Showings
Need to Discuss Your Sale?
The traditional mortgage or home selling process is not a good fit for everyone, and can feel overwhelming. You can contact us for a no cost consultation, and we can outline your options.
Methods People Use to Sell Their Home Fast
In general, there are a few ways to sell your property, list with a real estate agent, private sale by owner and selling to a specialized home buying company. Below we shall compare the different options.
List and Sell with a Real Estate Agent
Listing and selling with a real estate agent has benefits and drawbacks. The main advantage is that a real estate agent will do most of the work and expose the property to the largest number of potential buyers. The major disadvantage of dealing with a real estate agent is commission you are required to pay. The average real estate commission is 4% to 6%, plus HST. In contrast the seller will pay no commission if they sell to a cash buyer.
You’d need to explain the nature of your situation to the agent and confirm that the agent is comfortable with an expedited sale. For example, it is common for properties to disclose that the property must be sold quickly in the listing description. It is also common for sellers to demand “unconditional” and “as-is” offers to try and prevent buyers from reneging on their offer.
Selling the House Privately
Selling your house to a private buyer can be done quickly, but it requires more effort on the homeowner’s part. Private sellers usually advertise via free local classified websites and personally reach out to private buyers. A homeowner can also put a “For Sale” sign on their property. A fully private sale will avoid all fees charged by real estate agents.
Most homebuyers browse properties for sale via the Multiple Listings Service (Commonly known as the MLS). For Sale By Owner services are able to list your property on the MLS for a small flat fee. However, the homeowner will be responsible for showings and managing the listings. Homeowners can list with FSBO services and avoid the usual selling agent commissions. The commission from the buyer’s real estate agent will still apply.
Selling House to Cash Home Buyer
A “Cash Home Buyer” is a term used to describe individuals or companies that regularly buy houses, typically renting or reselling for a profit. These entities usually buy the properties wholly with cash, which allows a seller to sidestep the extra work involved with a mortgage.
There are some significant benefits when you sell your house or condo to a cash buyer. The first major advantage is that the homeowner can fully process the sale and receive cash from the seller quickly. In addition, the seller can avoid many fees associated with traditional sales, such as real estate agent commissions.
No Commission for Real Estate Agents
The second major advantage is no commission for real estate agents. Most real estate agents will not negotiate their commission which is usually about 5%. No real estate agent means no commission which can add up to tens of thousands of dollars in savings.
Since most Cash Home Buyers need to earn a profit by either reselling the property or renting it out, they will usually offer a price below market value.
Sell and Rent House
In some situations the home owner may want to sell their home and then continue to live in the house and pay rent, this is the sell and rent option. The sell and rent option is based on a number of factors such as the equity in the home and the amount of rent being paid. In most cases, the rental amount is much lower than what the owner was paying in the past. If this option is what you are looking for please call us to discuss your situation.
Selling Home “AS IS”
A cash buyer will purchase the property in “AS IS” condition when you have a quick sale. Cash buyers typically buy homes that have extensive damage and are in poor condition. There is no need to repair the roof, bathroom, kitchen, etc. “AS IS” means the buyer will purchase the property and the seller will not be responsible for any repairs to the property.
Downsides of the Traditional Home Selling Process
The most common way to sell a property is with a full-service real estate agent, yet this method has many drawbacks. First, the real estate commission can range from 4% to 6%, plus HST. This commission can amount to tens of thousands of dollars and increases with the value of the property.
Real estate agents also lock you into a six-month listing agreement. It is tough to cancel a listing agreement before the expiry date.
There is a real risk of the seller not completing the purchase or backing out of the sale. Buyers can and do put in many terms that allow the buyer to cancel the sale for financing, inspections, timing, etc.
Real estate agents usually want the homeowner to make costly repairs before the house is listed. However, these repairs may or may not have a positive impact on the profit from the sale of the property.
There are open houses to allow people to see the house. Open houses can cause a lot of disruption and messes for homeowners to deal with.
Selling a Cottage Fast
Selling a cottage or waterfront land can be difficult and take much longer to sell. Seasonal properties are bought by people that want a place to get away from the city. Since cottages are not a person’s primary residence buyers tend to be very picky on the location and the type of property.
Most cottage buyers want certain locations with specific amenities, therefore the number of potential buyers is less than a normal house. Cottages and vacation properties are also seasonal, which means that most are bought and sold in the spring and summer. Cottages also usually need a lot of repairs in order to get them ready for sale.
Cash home buyers are an excellent alternative when selling a cottage property. They can buy the property right away and the seller will not need to spend time and money to repair the building.
How to Find a Fast Home Buyer in Ontario?
Many companies and individuals promote themselves as “Fast Home Buyers” in Ontario, including Mortgage Broker Store. These buyers advertise in newspapers, signage, and on the internet. It is essential to check that they have plenty of positive reviews and a rapid response time.
Need Advice on Your Sale?
You may have more questions on the entire process and how much money a cash buyer may offer. You can contact our team directly and we’ll do our best to answer your questions.
You can contact us at Mortgage Broker Store for a detailed explanation of your options. If you choose to sell to a cash home buyer, we can proceed with that option immediately. Our company has the funds to buy your home, all inquiries are totally confidential and get immediate responses with a serious and fair offer as quickly as possible.
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