Do you want to sell some property to pay off debts? Or maybe you’re looking to re-allocate capital and set up a college fund for your child. Or perhaps you want to boost your nest egg and increase retirement savings.
Regardless of why you’re choosing to liquidate assets, it’s a legitimate means for converting assets into cash.
Asset liquidation is often time-sensitive, and you don’t always have time to go into the nitty-gritty. To ensure you’ve got all the facts straight, we’ve answered all your frequently asked questions about the subject right here.
What does asset liquidation mean?
When you sell an asset and receive money in exchange, the term used to describe this act is liquidation. While similar to a regular sale, the goal here is to receive a quick influx of cash in exchange for the asset. When debts start to outweigh assets in your portfolio, cash is needed to pay off the debt and stay financially stable.
Generally, houses—and the land they are built on—are highly liquid and can easily be sold off for money. In particular, cash may be needed quickly to:
- Manage debt
- Settle legal disputes
- Add to emergency savings
- Support children that are financially unstable
When should I liquidate assets?
While it may be difficult to part with certain assets, liquidation is an excellent way to overcome financial troubles and achieve peace of mind. If you’re bankrupt, the court will appoint a trustee who can help you determine which assets should be sold off.
Conversely, you could work with a reliable real estate broker to help you put your property up for sale, so you can get a good price on it.
What issues can come up during the liquidation process?
The reality is that the asset liquidation process is often slow and disappointing. If your cash needs are extremely urgent, you may have to settle for lower prices. Additionally, you may also have to suffer tax consequences and withdrawal penalties, such as fines from 401k withdrawals.
If you want to liquidate real estate, discuss your options with a real estate expert before you make any rash moves.
How to simplify the liquidation process?
Discuss and clarify your liquidation needs with your real estate broker and let them know that time is a top priority. They will be able to focus on connecting you with buyers that are also looking for a quick buy once you do.
If you need any help selling your property in Fayetteville, NC, you’ve come to the right place. Phillip Fehler, a Broker of Fathom Realty, has over ten years of experience helping clients seal the deal quickly and profitably.