Selling House Fast in Pinellas County
Sell Your House in 7 Days - Deal Or Scam?
Sell house fast cash as is - I'm sure you've seen these advertisements on bandit signs by the highway. Alternatively, in the real estate section of the newspaper. Perhaps you've wondered if they are realistic - or are they just a scam?
Sell house fast cash as is - The better ones are genuine,. That's well, the truth. These are placed by private investors who may have immediate access to funds and will afford to close on the property quickly. They will often cover the closing costs, and will certainly arrange all of the paperwork. Sounds too good to be real? Well, it isn't, but there is a snag - I bet you guessed that!
If a person is prepared to purchase your house, for many cash, and close in 7 days, they are not likely to pay retail market price. That's a well known fact - they can't afford to. These folks are certainly not philanthropists - they actually do this to produce a profit (even though reputable ones also like to consider these are helping people in distress). So, somewhere below the retail market value is what you can expect to see on their offer. How much below market price? It depends on the condition of the property, its location, and a number of other factors, but it could be around 70% of the retail price.
Before you think this is just a plain rip-off - think it over. You would pay them at least 6% if you sold the property through an agent. Add on closing costs, inspections which you may purchase, along with a small discount in the sales price, also it can easily get up to 10%. Then you could element in your holding costs. When it takes you half a year to promote your house and that's not bad in today's market), you have your monthly costs - loan payments, utilities, insurance and tax etc - to considered too. Over a house worth $250,000, the monthly outgoings could be easily $2,500 monthly. Over six months, that is another 6%.
Add on the expense of preparing the home for retail sale - maybe another $5,000 as well as the situation could look like this:
Price tag $250,000
Discount on the market (2%) 5,000
Agent's commission (6%) 14,700
Closing costs (2%) 4,900
Net sales value 225,400
Holding costs 15,000
Sale preparation 5,000
Total costs $20,000
Cash available $185,400 (74%)
So, if the house sells in 6 months, and you only have to discount by 2%, you might walk away with about 75% of the asking price. Or you have to cut your price for a sale, that could soon be below 70%, if the market continues to decline. I do believe which makes an offer of 70%, cash and immediately look attractive.
Needless to say, you can consider to sell the house yourself, saving the cost of a broker, but market statistics reveal that over 80% of FSBOs (For Sale By Owner) end up utilizing an agent anyway, and people who do sell the home themselves, achieve a discounted price than the agent might have done. This really is partly since the buyers realize that the owner is saving agency discount and commissions that through the offer price.
Whenever a private investor talks about buying your house in 1 week, this is among one of the ways in which they could practice it. At first glance the offer may not seem to be very generous, once you take into account the variables we have discussed, it can start to look like a good deal, even though but as you can see.