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, or in the real estate section of the newspaper. If they are realistic - or are they just a scam, perhaps you've wondered?
Sell house fast cash as is - The better ones are genuine,. That's well, the truth. They may be placed by private investors that have immediate usage of funds and may afford to close on the property quickly. They will often cover the closing costs, and will certainly arrange each of the paperwork. Sounds too good to be real? There is a snag - I bet you guessed that, even though well, it isn't!
If somebody is ready to purchase your house, for all cash, and close in 7 days, they are not likely to pay retail market value. That's a fact - they can't afford to. These people are not philanthropists - they actually do this to create a profit (even though the reputable ones also love to consider they are helping individuals distress). So, somewhere below the retail market value is what you can expect to see on their offer. Just 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 decide to think this is only a plain rip-off - think it over. If you sold the property through an agent, you would pay them at least 6%. Add on closing costs, inspections that you might purchase, as well as a small discount around the sales price, and it may easily stand up to 10%. Then you could factor in your holding costs. When it goes 6 months to promote the house and that's pretty good in today's market), you might have your monthly costs - loan payments, insurance, utilities and tax etc - to taken into account also. On the house worth $250,000, the monthly outgoings could be easily $2,500 per month. Over 6 months, that amounts to another 6%.
Add-on the expenses of preparing the house for retail sale - maybe another $5,000 and the situation could seem like this:
Asking price $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 think which makes an offer of 70immediately, cash and % look attractive.
Obviously, you can try to promote the property yourself, saving the cost of an agent, but market statistics show that over 80% of FSBOs (Available For Sale By Owner) find yourself employing an agent anyway, and those that do sell your house themselves, acquire a discounted price than the agent might have done. This can be partly as the buyers know that the vendor is saving agency discount and commissions that from your offer price.
When a private investor covers buying your house in 7 days, this is among the ways in which they are able to do it. But as you can see, although 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.