If you are ready to sell your home, you need to consider your options. You can save some money by putting it on the market yourself (For Sale By Owner), but that can come with all sorts of headaches and you may end up leaving some money on the table.
Most people opt for a traditional real estate sale through a licensed real estate agent. They have systems in place to properly market the home for added exposure, as well as negotiating skills and other traits that can aid in selling the property and getting the best price possible. However, with these services come costs.
So, how much does it really cost to sell your home in this “traditional” manner? Let’s break down the expenses:
Agent/Brokerage Fees – These are sometimes negotiable, but you will usually end up paying 4-6% of the final sales price in commissions that are split up between your listing agent, the buyer’s agent and the real estate brokerages they work for.
Closing Costs – The seller is responsible for most of the closing costs, including escrow, title, home inspections and other fees involved with the final sale of a property.
Repairs – If the home needs repairs, cleaning or upgrades prior to listing, you have to factor in these out-of-pocket costs.
Property Taxes – Most traditional sales will take 3-6 months on average to finalize. This means you will be paying taxes (and your usual mortgage payments) all the way until the escrow is closed.
Homeowner’s Insurance – Like property taxes and regular mortgage payments, you will still be responsible for any homeowner’s insurance as long as you own the property.
Not counting the property tax, mortgage payments, insurance premiums or repairs that you’d be paying regardless, the average real estate sales fees, repair costs and closing costs associated with the traditional sale of a home will add up to anywhere from 7-10% of the final sales price. Let’s say you sell your Central Valley home for $500,000. You can expect to spend $35,000-$50,000 to complete the process!
So, what’s another alternative to consider? You can sell your house for cash to a local investor like Offer4Cash. This is an especially good solution when you are in a situation where you want to sell the property fast (divorce, tax default, impending foreclosure, job relocation, inheritance, etc.) to get out from under it. Cash sales can close in as few as 7 days if you are really in a hurry.
However, a cash sale can be a very viable option even if you are not necessarily in a rush to sell. A cash buyer will take the property off your hands in as-is condition. If the home is in need of major repairs, this solution can potentially save you money. Let the buyer worry about upgrades and repairs. Take the cash and move on with your life.
Otherwise, take the time to do the math. It never hurts to see what kind of cash offer you are able to get. There’s no obligation to sell to Offer4Cash. We make our offer and you can decide if you want to accept it or not. In the meantime, interview real estate agents and try to get a real-world evaluation of your property. Understand they will likely give you a high-end price (as in the most you can likely expect), so temper your expectations. Compare what you realistically think it will sell for on the open market versus what you can get in a cash sale.
Going back to the previous example, let’s say you can sell your home for $500,000 through a traditional sale, but you know it will cost you up to $50,000 to do it, and that’s not even counting the additional 3-6 months of mortgage, insurance and tax payments. Offer4Cash makes you a cash offer of $440,000. It may seem like less money, but is it really? Look at the numbers and decide if it’s worth the time and hassle to go through a traditional sale compared to a guaranteed cash offer.
We’re not saying a cash sale is right for everyone. In most cases, if you have the time and resources to list your property on the open market and wait for offers, it will generate bigger returns. Still, it never hurts to see what kind of cash offer you can get. Contact Offer4Cash today for your free, no-obligation cash offer.