Selling House Fast in Pinellas County
Sell Your House in 7 Days - Deal Or Scam?
We buy houses - I'm sure you've seen these advertisements on bandit signs by the highway, or in the real estate section of the newspaper. If they are realistic - or are they just a scam, perhaps you've wondered?
We buy houses - Well, the truth is that the better ones are genuine. They are placed by private investors that have immediate usage of funds and may manage to close on your own property quickly. They will likely often cover the closing costs, and can certainly arrange all the paperwork. Sounds too good to be true? There is a snag - I bet you guessed that, even though well, it isn't!
If someone is prepared to purchase your house, for those cash, and close in seven days, they are not likely to pay retail market value. That's a well known fact - they can't manage to. These individuals are not philanthropists - they do this to create a profit (although the reputable ones like to consider they are helping folks distress). So, somewhere below the retail market value is what you can expect to see on their offer. How much below market value? It could be around 70% of the retail price, even though it depends on the condition of the property, its location, and a number of other factors.
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 buy, along with a small discount on the sales price, and it may easily stand up to 10%. Then you could aspect in your holding costs. When it takes you half a year to market the homethat's and pretty good in today's market), you have your monthly costs - loan payments, tax, utilities and insurance etc - to considered as well. Over a house priced at $250,000, the monthly outgoings could be easily $2,500 a month. Over six months, that is another 6%.
Add on the costs of preparing your house for retail sale - maybe another $5,000 and the situation could look like this:
Price tag $250,000
Discount available for sale (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. If the market continues to decline, or you have to cut your price for a sale, that could soon be below 70%. I think which makes an offer of 70immediately, cash and % look attractive.
Needless to say, you can consider to promote the house yourself, saving the cost of a real estate agent, but market statistics demonstrate that over 80% of FSBOs (Available For Sale By Owner) wind up using an agent anyway, and people who do sell the home themselves, gain a lower price compared to agent might have done. This really is partly as the buyers realize that the seller is saving agency discount and commissions that from the offer price.
Whenever a private investor discusses buying your home in seven days, 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.