RELIEVING YOUR DEBT
Debt is a concern for many Canadians. According to a market research, 94% of Canadians admit that the average household carries too much debt, and 4 in 5 (84%) make getting out of debt their top financial priority. Due to the recent COVID-19 pandemic, more households are entering into debt as their hours or jobs have been cut. The issue has become a downward spiral and more than ever, Canadians are searching for the solution to end or alleviate their debt problem.
If you own your home and have built up some equity paying down your mortgage, your house could be a good asset to use toward your debts. Selling your house could mean paying off a first and or second mortgage, credit cards, Lines of Credit, and other unsecured loans.
But the process of selling a house could mean incurring more costs – costs to renovate, repair, stage the house, and then waiting patiently for an offer to arrive and hoping that your buyer has the funds in place to close on time. This is the traditional method of selling with a real estate agent that most of us are aware of. However, private home selling has gained popularity due to the ease and cost-saving benefits. Not only do you save thousands in realtor commissions, but most reputable private buyers should be able to close on your timeline, whether that’s two weeks or months.
Did you know that you do not have to stage, repair or even clean your house in order to sell it? There are private buyers who will buy your house as-is, giving you a full cash payment that you can use to immediately settle most if not all of your debt.
“Am I leaving money on the table?” This is a common concern that a lot of homeowners share regardless of whether they sell private or on the MLS (aka listing it and selling it on the market). You want to know that you made the best decision you could for you and your family. While a private buyer may not be able to pay as much as a real estate agent would through listing it on the market, they do offer speed, convenience, and ease. Most private buyers even allow the seller to dictate the terms of the sale.
If you are looking at a scenario where you need to pay off debt and that is the most important thing at hand, speed and confidence in your buyers’ ability to close might be more valuable than how much money you can squeeze out of the sale. Keep in mind, the right buyer is not always one with the highest offer. If the house needs work, it could be the ease of not having to put any more money into the property in order to get it sold, especially if other bills require your attention and financial discipline. Sometimes a peace of mind and a secure deal is more important than the vague promise of “multiple offers” from a real estate agent.
If you are considering this option it is of utmost importance to find a reliable and credible private buyer. They will lay out the options for you and be upfront and honest about the offer they are willing to make (and hold to). Homeowners can do some research by googling the company, reading the reviews, checking out their website and even calling the company to interview them, as they would with an agent. If you are ready for the next step in relieving your debt, contact us for a chat. At Michael the Home Buyer, there is no pressure or obligation. We hope to be a solution to your debt problems and on toward a new start in life.