Private House Buyer
A private house buyer can quickly buy your home. When struggling to pay your mortgage repayments, you might need to consider the prospect of urgently selling your home. A lot of people want an immediate offer on their home or to see if someone would privately buy their home. This can be a lot faster than selling your house through a real estate agent, which can often take a couple of months from start to finish.
What are private house buyers?
Mortgage Rescue is not a private house buyer.
Private house buyers typically are in the position to buy your house without having to take much time. They are usually willing to pay an okay price for your home, in return for the aspect that they buy it quickly, which would probably save you from the situation getting worse.
There are some private house buyers in New Zealand.
Is it a good idea to get a private house buyer?
There are many variables and matters to consider, and so it is not an easy question to answer. This would be like asking “Is it a good idea to sell my car privately?”.
The reality is that there are many aspects to consider. You should ensure that you are of sound mind and seek professional advice, including help of a trusted and quality lawyer. Every situation is different and you should carefully evaluate the circumstance. Settled also has an interesting page that talks more about selling a home privately.
There are many aspects to consider, here are some of the ones you may want to think about:
- Price – You typically cannot expect that a private house buyer would pay the full price for your home. To achieve the full price, you might have to wait several months and sell it through a real estate agent. There is also no guarantee a real estate agent will actually get you that ‘top price’; a lot of real estate agents make assumptions and promises that they cannot necessarily keep unfortunately.
- Costs – If you sell your house privately, you might be able to save thousands of dollars on selling your property. Real estate agents can charge as much as $25,000 or $35,000 to sell your home, and in many cases, a lot more. Paying real estate agents commission is not always a magic answer to the situation. Not all agents are equally motivated.
- Timeframe – If you need to urgently sell your home, then a private house buyer may be your only option in some circumstances. To engage a real estate agent to market your home, it can sometimes takes month. This includes the time it takes to produce the marketing, prepare for open homes, get the home ready for sale, clean the house, get everything in order, then run several weeks of open homes. It can then take weeks to hold an auction or negotiate. Then there is a real chance still that the home may not sell.
- Opportunity To Live In the Home – Some private house buyers may give you the opportunity to live in your home temporarily after they buy it from you. For example they might allow you to live there for 6 months after they buy it from you, which could give you enough time to find a new place to live. On the other hand, if you sell it on the open market, there is arguably a greater chance you’ll need to leave the house not long after selling it.
Alternatives to selling to your home by private treaty
Rather than selling the house to a private house buyer, you may wish to inquire if a “Mortgage Rescue” package can help you save your home, and keep it amongst the family or a close friend.
This is where your home may be able to be refinanced to another lender or another type of loan, giving you some breathing space. The new lender may expect less by the way of regular repayments on the mortgage. This can give you time to recover financially.
You may also have a Mortgage Rescue package to get your home out of a troubling situation. Then this can allow you to get a lifeline, and give you more time and peace to sell the house more comfortably on the property market, with a proper marketing campaign. This means without that rush, the home can be correctly presented for sale, rather than having to sell under ‘urgent circumstances’.