Relocating And Need To Sell My House In Houston
Relocation is a complicated exercise in coordination.
We get local Houston home sellers calling us or submitting their house info on this website every month saying “I’m relocating and need to sell my house in Houston“. The great thing is that we’re able to help a good many of those sellers sell their house quickly (because we’re actively buying houses in Houston right now!).
There’s an insane amount of details to keep together, plus the stress of whatever is making you move in the first place – often it’s a new job or a family-related need, but the true need to move always comes with a dramatic change.
So how do you make the most out of a difficult situation?
Don’t Agonize – Organize.
You don’t want to be in a situation where you end up paying to own and maintain a vacant house for an extended period of time (this could be a year or more). That gets real expensive really fast and it doesn’t have to be that way.
Although the market is very strong right now for sellers in Houston, things can change in the blink of an eye – our economy is largely dependent on oil & gas and we all know how quickly that world can shift. And during the best of times economically, we see the most relocations happening – big corporations moving their people in and out of Houston. Some of the larger companies offer house-buyback programs for key employees when they are asked to pick up and move, but most employers are not in a position to offer this.
We’ve all heard the serious horror stories over the past couple of decades; good people transferring for work to another city and renting there, while trying to keep up with their mortgage on their house back in Houston. Unless you’re filthy rich, you probably can’t afford to wait it out.
So how do you make the right choices when you’re relocating and need to sell your Houston house fast?
Review Alternatives to Selling.
Paying for two places to live, in two different cities, gets excruciatingly expensive really quickly, but again, it doesn’t have to be that way. You may want to consider hanging on to that house, at least for the short-term. Rent it out.
Sure, it isn’t ever quite that easy, and there are some questions you need to ask:
- What will the house rent for? Will it cover your monthly mortgage?
- Also you can expect property taxes to increase, because you are no longer enjoying a ‘homestead exemption‘ in the property as the owner-occupant. How much will that be?
- Is the house in rent-ready condition? What minor upgrades need to be made to make it move-in ready for tenants?
- How much should I pay a property manager?
All of this has to be baked into your calculations.
This might seem like more trouble than it is worth, and sure, you may never have aspired to becoming a landlord, but there are some key advantages to consider here:
- Cash Flow: this is obviously the big one in the short-term. Will the rental income offset your mortgage payment? Ideally there could even be some positive cash flow, which you can set aside for maintenance and improvements later. But even if you are still a couple hundred dollars short on this equation, it still might be worth doing.
- Keep Your Equity: since 2012 single family residences in Harris County have appreciated approximately 6% per year, on average. So assuming you have done at least some basic maintenance and upkeep to your house, and you live in at least an average neighborhood, then your house will have gained quite a bit of value – especially if you have lived there for a few years.
- Mortgage Paydown: this is definately the big one in the long-term. While that house is gradually appreciating in value, your mortgage is slow but surely getting paid down. And your tenants are providing the funds for this.
- Depreciation Expenses: Everybody likes tax write-offs. Depreciation is the process used to deduct the costs of buying and improving a rental property. Rather than taking one large deduction in the year you purchase (or improve) the property, depreciation distributes the deduction across the useful life of the property. The IRS actually requires that you depreciate income generating rental property.
- No Capital Gains Tax: Assuming you lived in your house in Houston as a primary residence for at least two years, before moving away and turning the house into rental property, then you will be exempt from capital gains tax. You can sell your primary residence exempt of capital gains taxes on the first $250,000 if you are single and $500,000 if married. This exemption is only allowable once every two years. Obviously, individual cases may vary, so be sure to consult your tax professional (like we do).
- Maintain or Improve Your Credit Score: A current mortgage is generally going to boost your credit score. If you are relocating and renting, at least for an interim period, then keeping your existing mortgage in place (for your house back in Houston) will provide some benefit in terms of maintaining your credit score.
- Sell On Your Schedule: you won’t have to be a landlord forever. You can still decide to sell the house later, when the time is right for you. Remember life is what happens to us while we are a busy making other plans. When it makes sense for you to put the house on the market, you can always do that. But when you have an income-generating property, you have options.
Sell My House Fast In Houston… Your Options And Steps
- Find out what your house is worth: To do this you can contact a reputable real estate agent or connect with us and we can give you a no cost no obligation valuation on your property. Once you know what the house may be able to sell for in the current market… that sets the basis for how long you may or may not be able / willing to sell the house.
- Decide how fast you need to sell your house after you relocate: This is a biggie. I’ve seen professionals who moved out of state for a job who had their house on the market for over a year before selling it for a much much lower price than they hoped. Decide how fast you need to sell your house… and how long you’re willing to keep making 2 mortgage payments, insurance payments, etc.
- Find a solid real estate agent BEFORE you start packing boxes: Get the ball rolling early so you don’t waste any time. Every month that you wait or every month that it takes to sell the house… costs you money. Or if you don’t want to use a real estate agent to sell… we are a reputable local house buyer and we’d love to make you a fast-fair all cash offer. Just fill out the form through this link to get started >>
- Calculate the value of selling your house fast vs. “waiting it out” for a dream price: We all want to sell our houses for as much as possible. But one thing many people forget to do is come up with the $ amount of how much it costs you to hold onto this house. The costs involved include the mortgage (which if you’re still within the first 10 years of the mortgage, the majority of your payment interest and not hardly going to principal at all), insurance, taxes, maintenance, etc.Lets say you want to sell your house for $200,000… and your mortgage payment is $1,200/mo, taxes $200/mo, $100/mo for insurance, and $100/mo for maintenance (lawn maintenance, repairs while you’re gone, etc.).Those expenses add up to $1,600/mo in “non equity building” expenses.If it takes you 7 months to sell that house through a real estate agent for that $200,000… it cost you $11,200 in DIRECT “holding costs” + you had to pay $12,000 in real estate agent fees (assuming 3% for the buyers agent and 3% for the sellers agent).Totaling $23,200 in LOST money. That doesn’t even account for the value of your time, your stress in thinking about that property sitting on the market, the opportunity cost of what you could have been doing with that extra money during those 7 months, etc. So the real cost to you was likely closer to $30,000.But, what if you were to sell your house next week and avoid all of that?Even if you sold for a discount below the retail price (lets say… $175,000)… you’re still ahead of the game by selling the house NOW at a discount to a home buyer like our company vs. 7 months later at full price (and paying holding costs and real estate agent fees).Make sense?
- Take action!: Whatever you decide, commit to your decision and take action. If you want to go the real estate agent route, great! Find a reputable local Houston TX agent. We can even recommend the agents that we work with. If you’d rather not have to wait and not have to pay real estate agent commissions… then a viable option may be to sell your house to us 🙂
If you’ve got a lot of time on your side and a really great property, you might want to test the market by listing it on the MLS at a high price. There’s a small chance someone might just fall in love and be willing to overpay – people do crazy things for love.
Most properties are pretty average, in reality. They tend to be like the other houses around them, in the same way that people who live near each other tend to have a lot in common too. So unless your property is truly exceptional, as in magazine-quality extra-special, you won’t capture the most money in the market by pricing at the highest point.
I am relocating and need to sell my house in Houston creatively.
You can also win by marketing your property for rent and sale at the same time, just to see what happens first. You have to maintain control of the process, which can confuse even seasoned real estate brokers.
In certain situations, we may partner with property owners to help them sell the house on terms, and thus getting them a better selling price.
In other cases, we may help renegotiate a loan, help make monthly payments or conduct a short sale with a bank.
We love helping people solve complicated problems.
Creative solutions can bridge the gap to get you where you need to be.
Who Is Houston Westside Home Buyers And How Can We Help You If You’re Relocating?
We’re investors. We support our families and beautify neighborhoods by buying houses from Houston home owners who need to sell fast for one reason or another.
The types of sellers who tend to work with us include people who…
- Need to sell fast (we can close in as little as 10 days if needed)
- Don’t want to hassle with listing a property with an agent
- Don’t want to pay real estate agent fees
- Don’t want to renovate or make improvements to the house
- Don’t want to have to clean it and stage it
- Don’t want to go through endless showings and open houses while trying to coordinate another move
- Can’t sell their house for one reason or another (we buy houses in as-is condition)
- … or a variety of other reasons
But we’re regular hard working local people, just like you, and we enjoy being a positive force in the Houston community (even if just a small force).
We’re honest and straightforward, and just like you, we really dislike pushy sales tactics.
We’ll quote you a fair price, we are going to show you how we arrived at this price, and we can close fast with cash.
If you’re prepared to wait and can hire professionals to help, you can manage the sale of your property from a distance. In certain circumstances that risk can pay off.
We’re happy to help you find answers to your toughest questions about your Houston real estate, so please feel free to call us at 281-947-5545 and chat with us anytime.