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 are placed by private investors who may have immediate access to funds and may afford to close on the property quickly. They are going to often cover the closing costs, and definately will certainly arrange each of the paperwork. Sounds too good to be true? Well, it isn't, but there is a snag - I bet you guessed that!
If somebody is ready to buy your house, for all cash, and close in seven days, they are not likely to pay retail market value. That's a well known fact - they can't afford to. These folks are certainly not philanthropists - they do this to create a profit (although the reputable ones also like to think they are helping people in distress). So, somewhere below the retail market value is what you can expect to see on their offer. Just 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 decide to 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 can easily stand up to 10%. Then you could factor in your holding costs. If it goes 6 months to promote the housethat's and not bad in today's market), you may have your monthly costs - loan payments, tax, insurance and utilities etc - to taken into consideration also. Over a house worth $250,000, the monthly outgoings could be $2,500 a month. Over 6 months, that amounts to another 6%.
Add on the costs of preparing the home for retail sale - maybe another $5,000 and the situation could look like this:
Price tag $250,000
Discount 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 do believe which makes an offer of 70cash, immediately and % look attractive.
Of course, you can attempt to market the house yourself, saving the expense of a broker, but market statistics show that over 80% of FSBOs (For Sale By Owner) end up utilizing an agent anyway, and people who do sell the house themselves, achieve a lower price compared to the agent might have done. This really is partly since the buyers understand that the seller is saving agency commissions and discount that from the offer price.
Each time a private investor covers buying your house in 1 week, this is among the ways that 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.