For those who need to know how to sell a distressed property in Milwaukee, we’ll cover the options you have available. Traditional listings for this type of property are not suggested as they don’t attract most buyers, take far too long, and are too costly for most owners of a distressed property.
Life can bring unexpected changes that leave you searching for solutions. Homes can fall into states of disrepair that are far beyond the owner’s capacity to handle. There could have been a death, divorce, illness, or job loss, leading to lost income or a forced relocation at play.
Let’s dive into some of the options to sell a distressed property in Milwaukee
Professional Buyers
There are always two sides to everything, and this holds true when considering how to sell a distressed property in Milwaukee. Let’s explore using the service of a professional cash buyer when you’re selling. One of the biggest advantages of working with a professional buyer is the quick closing time, typically within 7-14 days. According to local market data, cash sales in Milwaukee tend to close 50-60% faster compared to traditional listings. This means you’ll be able to move forward with your plans in a matter of weeks instead of months. Additionally, with a professional buyer, the sale is as-is, which means there’s no need for repairs or dealing with any buyer contingencies.
However, it’s important to understand the risks as well. Since professional buyers are taking on significant risks, such as the costs of potential repairs and market volatility, they generally offer below-market prices. To protect yourself, do your research and verify the credentials of the buyer. For example, check if they are members of reputable associations like the Milwaukee Real Estate Investors Network (MREIN) or have verified testimonials from previous clients. Be cautious—there are unscrupulous buyers who may try to take advantage of your urgency. Ask questions, request references, and consider seeking legal advice to review the terms before signing any agreements.
Additionally, the sale is as-is and there won’t be any downtime waiting for the right buyer. Nor will you be required to make the investment of your precious time and money in repairs. Another advantage is you’re not carrying any legal risk, as with selling on your own and since most professional buyers pay all of the closing costs, you’ll save even more.
Now, because the professional buyer is taking all of the risks, and offering the advantages of cash sales, their offers are below the prices being realized in the current real estate market. A word to the wise, do your research on who you’re dealing with. Regrettably, there are unscrupulous buyers who may try to take advantage of time or financial constraints they learn you’re up against.
Do-It-Yourself
Selling a distressed property in Milwaukee on your own may sound appealing because you’re in charge of the process and can potentially save thousands on agent or auctioneer fees, which can impact your bottom line. If you’re knowledgeable about property marketing, real estate pricing strategies, and all of the legal paperwork involved, this could be a viable option. For instance, you can list your property on local platforms like Milwaukee’s Craigslist or Facebook Marketplace, and if you’re confident with real estate contracts, you may avoid many typical fees associated with traditional sales.
However, selling on your own comes with considerable risks. Without professional marketing expertise, you may struggle to reach the right buyers, which often results in longer listing times and lower offers. The legal aspects are equally crucial—failing to follow the proper procedures could lead to costly mistakes or even lawsuits. According to data from the National Association of Realtors, about 36% of “for sale by owner” properties ultimately end up being sold below market value, and one-third of owners face legal issues. To mitigate these risks, consider consulting with a real estate attorney for guidance, or seek mentorship from local experts before taking on this challenge alone.
Conversely, inexperienced in marketing and the legal details, selling on their own often leads owners to failure. Not only don’t they realize the highest profit on their property through their errors, but they could also end up in a legal nightmare with no way out.
Professional Auctioneers
Property auctions rarely imitate art, where fantastic prices are realized in movies and on television. The reality is often more practical, but there are still advantages to using an auctioneer. One of the most favorable aspects of auctions is avoiding the headaches of multiple property showings and prolonged negotiations with buyers. Additionally, auctions typically close within 30 to 40 days and are as-is sales, meaning there’s no requirement to make repairs or continue pouring money into upkeep. For distressed property owners, this can be a relief, as it minimizes ongoing expenses.
However, it’s crucial to be fully aware of the risks and potential costs involved. Most professional auctioneers charge a substantial fee, often around 10% of the final purchase price. To avoid surprises, verify all associated costs with the auctioneer upfront and make sure you understand whether the buyer or the seller will be responsible for paying those fees. Be mindful of competition—a large number of similar properties auctioned at the same time can lead to lower bids. I suggest checking the auctioneer’s reputation, perhaps through Better Business Bureau ratings or online reviews, to ensure you’re working with a trusted professional who will maximize your property’s value.
Due to the nature of auctions, the outcome isn’t guaranteed, you may be up against the issue of low attendance. There is also the innate competition when a high volume of properties is up for auction at the same time, leading to lower bids.
No matter which you choose, make educated decisions by taking the time to understand all of your options. Would you like to learn more about how we can help you sell a distressed property in Milwaukee? Just call Northwoods Property Resources today at (920) 851-9727 or send us a message any time!