“I want to sell my house at full market price, for all cash, tomorrow. I want the buyer to pay all closing costs and the mortgage company to forgive my loan and let me keep all the proceeds”.
That would be great, wouldn’t it? We buy houses all over middle Georgia and talk to a lot of Bonaire Georgia house sellers. Most sellers say the same thing, “Buy my house at full retail price and pay closing cost”. Most houses we buy need work. At the very least, most Bonaire Georgia houses we buy need new flooring, paint, fixtures and some trim work, but they still want full retail.
There must be a lot of good swimmers in my area. Everyone practices their backstroke in this river they call “de-nial”. You like what I did there?
Seriously, many people, even in time critical situations, wait until the last minute to do something about their real estate problem and then expect miracles like the ones above from their agent or professional house buyer. SO, I am going to show you the real price of “selling my house fast” vs. “selling my house” with time to spare.
The Real Cost
First point to realize is the side of the transaction you’re on. Most people are used to buying a house in Bonaire Georgia, they are not used to being a seller. Even fewer people are used to selling their Bonaire house on a time crunch. If you have a job transfer, Foreclosure, an inherited house from a loved one, or other situation that requires a quick sale, then the price has to attract people that move fast. A good-looking house, move-in ready, in a good Bonaire Georgia neighborhood can sell in a month at a retail price, all others have to make the necessary repairs and updates to get full price. Go to the local flea market (Smiley’s flea market in our area) and you will see what I mean. Sellers will try to sell products at full retail price because the item looks new or is in the box. Many buyers won’t pay full retail because the item is being sold at a flea market, even if it is new. Buyer will try to negotiate the price more as it gets closer to the end of the day (there’s that time crunch).
Less time or less “new” looking means lowering the price to get your house sold fast enough. The more time you have and the better looking your Bonaire house is means you can wait longer for a person willing to pay your price.
The cost of selling your house (or boat, car, four wheeler, etc.) fast is always going to involve making the house your selling more attractive to your house buyer. Sometimes that means lowering the price and other times it could mean offering better terms (we buy houses with seller financing all the time).
Most professional home buyers that can fix your problem fast will use a formula to make a cash offer. HERE IT IS; 60-70% of full retail value minus any repairs needed. THAT’S IT. At Real Estate Problem Solver, We itemize our cash offer so you can see where our cost is coming from, but it still comes out to roughly the same price. Why should you sell your house for such a low price? To Show we are as transparent as possible, I’ll even show our checklist of an average $130,000 house;
- Loan Interest for six months-$9-14,000
- Closing costs-$4-7000
- RE Agents fees- 6% of sales price ($7800)
- Repairs-$6- $50,000 or more
- Inspections’ and Appraisals’- $450-550 each
- Marketing- $1000 avg. per house
- Our Margin- $15,000 avg. and 3 to 6 months to complete. ($15,000/6 months= $2500/mth)
As you can see, most Home buyers are not being greedy when they make a low offer, those are just the numbers they have to go by. MOST OF THESE COSTS ARE THE SAME EXSPENSES YOU WOULD INCUR BY SELLING THE HOUSE YOURSELF at full retail.
The difference is, you get close to the same money in your pocket without doing the work. We can buy your house fast, but it usually has to be in that criteria. You do the work or we can. Your trading the time savings it takes to sell your Bonaire house fast for the labor it would take to get the house fixed up and sold for full retail.
If you still need to sell your house fast, but don’t need the money right away, there more lucrative ways to sell your house and get closer to your asking price. Read our article on Selling on Terms.
Call us for help and good luck.