The real estate market is a roller coaster; buyers are backing out of deals, and properties move more slowly.
Consider this; if you are set on only looking at a cash purchaser at the closing table, you will probably get considerably less for your house than you would get on our offer based on good terms.
Here’s a review of some options for a fast home sale vs. a traditional one.
1. Traditional Real Estate Sale
Asking price: $400,000
- Minus Misc. (price negotiation, fix-up, etc.): -$20,000
- Real Estate Commission (6%): -$24,000
- Closing Costs (2.5%): -$10,000
- Marketing Costs: -$2,000
- Total: -$56,000
Net from Sale: $344,000
That’s $56,000 less than originally expected. (If it is only $30k – $40k it’s too much!)
(Note: the examples above are for purely illustrative purposes only to reflect what could happen. Each property will be different.)
2. Seller Financing
Asking price: $400,000
- Minus misc. (price negotiation, fix-up, etc.): -$0
- Real Estate Commission (6%): -$0
- Closing Costs (2.5%): -$0
- Marketing Costs: -$0
- Total: -$0
Net from Sale: $400,000
Seller Financing has been successfully used for over 75 years throughout the United States. You will usually get much more cash in your pocket than that in a typical real estate transfer transaction.
You can get a Full Price Offer for your home – if you will keep your current mortgage(s) in place for a few years and hold your equity for a while.
All that is needed is up to 90 days to make all the arrangements before agreeing. During this time, you can still market for a buyer.
Now, you have just made $56,000 more than a traditional sale.
There are no commissions*, closing costs, or fees.
The term for the agreement, at a minimum, should be 24 months because it takes that much time for all 30, 60, and 90-day marks on the credit report to fall off. 36 months or more is ideal and will make it easier for the resident to finance.
Also, should the resident decide that they do not want to buy but would like the property to be sold, they will be required to remain in the property until sold, keeping payments current.
3. Rent Your House
If you think that simply renting your house will solve your problem, you should know the cost of renting. There are repairs to be made, maintenance, and the vacancy factor. People come and go. You will not immediately fill the home when vacant.
Property Value: $400,000
- Asking Lease: +$2,500
- PITI: -$1,500
- Vacancy Factor: -$225
- Repairs and Maintenance: -$200
Net Rent Per Month: +$570
(Note: the examples above are for purely illustrative purposes only to reflect what could happen. Each property will be different.)
Short-Term Lease to Buy
For agreements less than 24 months, you should plan on a minimum 10% break between the appraised price (based on a Comparative Market Analysis – CMA performed by a licensed Real Estate Professional) and your acceptable asking price.
The CMA often is at or near the 10% difference from the asking price. It is entirely up to you whether you want us to fill your home for 6-12 months at that price or wait until you can sell it (usually at that same price or less).
Remember that we have future resident buyers waiting; each month you wait, you have to make another payment on the home. Money that you could use elsewhere.
CMA (Comparative Market Analysis) Value: $440,000
- Asking Price: $400,000
- Difference for the 10%: -$10,000
- Real Estate Commission (6%): -$0
- Closing Costs (2.5%): -$0
- Marketing Costs: -$0
- Total: -$10,000
Net from Sale: $390,000
(Note: the examples above are for purely illustrative purposes only to reflect what could happen. Each property will be different.)
Based on the CMA, you would be required to accept a slightly lower price than your asking price. But, you are still making $44,000 more than a conventional sale using a licensed agent.
Special Short-Term Lease to Complete a Sale
You can set up a short-term lease when you have a buyer that needs to get their home sold before they can complete financing or something similar. If the buyer can afford the payments, they can hold onto the property until theirs is sold.
Other Benefits to You, the Seller
- A legitimate “takeover” of one’s existing loan payments, without loan assumption or violations of the underlying lender’s alienation and “due-on-sale-” admonitions.
- A higher selling price in most cases.
- A faster sale and shorter escrow since there is no waiting period for loan application, qualification, and approval.
- Freedom from loan payments, which may no longer be affordable, as well as the cost of insurance and general maintenance.
- Enhanced income and profit potential, compared to what straight renting or leasing could provide.
We Keep It Simple
Fill out our short property form, and we’ll get back to you in less than 24 hours with a solid offer for your house. We keep it simple, to close when you’re ready, and to get you the guaranteed results you deserve.
“Easy Sell” Property Form
We look forward to learning more about you and your property.
John Lemon and The Team at Direct Cash Home Buyers.
Call or Text for Faster Service
Call (818) 405-9062
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