Entrust Homebuyers | Real Estate Solutions | Servicing Tennessee

How to Sell a Distressed Property in Tennessee

By Kellen Harris

If you’re exploring options to sell a distressed property in the Nashville area, let’s start with the basics. A “distressed property” typically refers to a house and/or piece of land that either is severely behind on maintenance or damaged by fire, flooding, storms, or even vandalism. Typically,the current owner can’t afford to, or doesn’t want to, keep up with the property any longer.

Sound familiar? Then, here are three options to consider…

1) Sell Your Distressed Property in Tennessee to a Professional Buyer

Professional homebuyers offer cash for your property, so this option is best if you’re in a time crunch. Because they buy your property as-is, in cash, the process guarantees a quick closing, so you won’t waste your time waiting on repairs or the right buyer.

It is important to note that professional homebuyers usually make offers below the prices reported in the current real estate market. This “Fair Cash Offer” is because they handle all of the legal paperwork as well as pay for the repairs and closing costs. On the upside for the homeowner is you don’t carry any legal risk or waste your time and money on a “money pit” property. Once you accept the cash offer, you walk away with money in your pocket.

Some dishonest people try to take advantage of distressed property owners, so be sure to check the reviews of any cash homebuyer you choose to work with.

2) DIY – Sell Your Distressed Property Yourself

Selling on your own can sound appealing. You can save money by handling the sale yourself. You get to make all the decisions, and you won’t be paying an agent or county auctioneer fees.

That aside, selling a distressed property DIY requires investing serious time into learning the market and the legalities of real estate sales in Tennessee. Without proper marketing and legal knowledge, you could miss out on potential profit — or find yourself in a costly legal battle after the sale.

If you are prepared to do all the necessary research and accept the risk, you can serve as your own real estate agent. Just commit to the process!

3) Sell Your Distressed Property through Professional Auctioneers

Modern property auctions have moved to the web, which can help you avoid the headaches of showing a distressed property. This method also saves you time and money because auction properties usually close within 30 to 40 days. Another plus, they sell as-is (no repairs necessary).

The usual fee for an auctioneer’s service is 10 percent of the final purchase price. If your buyer is responsible for the auctioneer’s cost, they may bid lower for your distressed property to cover this fee. If it’s not the buyer’s responsibility to pay the auctioneer fee, you will have to absorb the additional expense.

The outcome of auctioning a distressed property in Tennessee is never guaranteed. Low auction attendance and less bid volume could lead to lower profits. But if the highest profit is not your goal and risk is not an issue, a property auction may be the option for you.

The Entrust Homebuyers Difference

Entrust Homebuyers has served as a trusted resource in Middle Tennessee since 2015. We help educate homeowners to make informed decisions with their unique property and financial situation. Our commitment is to help you discover the best solution for you, even if you are not selling your property to us.

Give our team a call today at 615-338-5578.

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