Cash Home Sale vs Listing with an Agent
Selling your home for cash can be a crazy and stressful time. Once people become aware you are a target for Realtors and Cash Home Buyers.
Everyone will tell you they provide the best service and can benefit you the most. What is the realty of the situation? Should you sell your house for cash? Should you use a we buy houses company? These are very good questions In this article we will show you exactly how each sale is broken down and you can make the decision for yourself based off the facts.
Listing Your Home
When you list your home there are many factors and costs associated. Here we will break down the costs.
Realtors will charge you roughly 5-6% just to use their services to list your home. They do provide a lot of service but this will take a larger chunk of your net profits.
Closing costs add up to 3% of the home sale and many buyers will make offers asking for money to be applied to their closing costs.
Always expect your offer to come with some type of repair request even if the home is being sold as is. Buyers looking for bargains on the MLS will ask for a little credit or use the dept of repairs to justify a very low offer. These request will vary from house to house but you can expect the cost to range anywhere from 3-5% of the asking price.
The average home stays on market for at least +/- 91 days depending on your area. You can expect your to possibly sit even longer if its being in need of repairs. During this period you will need to keep paying your mortgage, water bill, electric bill, trash, homeowners insurance , and hoa fees if you have one. These costs can really kill your net proceeds if the home sits for a few months on market.
Traditional Sale Cash Sale
$ 150,000.00 Offer $ 130,000.00
$ 9,000.00 Commissions $ 0
$ 1,500 - $2,000 Closing Costs Typically $ 0
$ 1000 - $3000 Repair Requests $ 0
$ 1000 - $2000 Holding Costs $0
+/- $134.000.00 Net Proceeds $ 130,000.00
This example above is based off a home value of $200,000 needing roughly $20,000.00 in repairs. As you can see there is a very small difference in net proceeds. If you decide to use a "we buy houses" company there are great benefits. You may net a little more money listing your home but this comes at the cost of lots of negotiations, dealing with realtors, and waiting months to sell your home. Many people can see the value of saving time and moving on with a fast cash home offer. We Buy Houses.
Ultimately its up to you to decide what works best for you. If you have time and would like to deal with the traditional home sale it might be worth listing your home for the extra couple thousand net, but getting a cash offer is a great house selling hack that will save you time and headache.