Most sellers do not realize the true cost involved in selling their house. To calculate the true cost to sell your home you need to include the Realtors commission, repairs, closing costs, holding costs, and not to mention...a
discount to start the process.
How much money will each item cost you?
Realtor’s Commission
When you list your house with an agent, you immediately have to mark up the price to cover the 6% or more commission they make, or else lose that money from your profit margin. On a $150,000 house, you will have to pay a realtor $9,000 just to sell your home!
Repairs
Another overlooked cost is the price you have to pay for all of the repairs and updates to get it ready for listing. Repairs are not only costly, they can take time to complete. These updates can include painting, new carpeting, new flooring, landscape work and minor remodeling. Repairs can cost hundreds or thousands of dollars, depending on the size and age of the house. Major repairs like plumbing, electrical or HVAC systems can easily cost thousands of dollars in fixing.
Closing costs
When you close on a house, you will have all of the fees associated with closing. You have to go through the realtor’s title company and pay fees, and then the mortgage company has fees and any other miscellaneous fees incurred while closing. The closing costs are usually another 3 to 5% of your home sale price. This could be an additional $6,000 to $10,000 on the aforementioned $150,000 house.
Hidden Costs
Besides obvious expenses to sell your house, there are hidden costs too. Holding costs is the money that you pay while the house is being sold. While your house is on the market, you continue to pay the mortgage, the taxes, insurance, and the maintenance. In today’s slow market, it may take 6 to 12 months before you find a buyer. And when you do get a purchase agreement, you often have to wait another 30, 60 or even 90 days before you can close and get your money!
Also, depending on your region, sale prices range between 88 and 97% of the asking price. With so many houses for sale in certain areas, it has become a buyers market. To sell your house at all, you may need to drastically reduce your price, costing you yet more money.
Do the following math to figure out how much money selling your home with a realtor is going to cost you:
• Start with the asking price of your house. (We'll say $150,000)
• On average, the sale price is 4% lower, so subtract 4%. ($150,000 - 6,000 = $144,000)
• Now, take the sale price and subtract 6% of the price for the realtor’s commission.
($8,640)
• Deduct another 3% for closing costs. ($4,320)
• Finally, subtract 4% for the cost of repairs. ($5,760)
How much is left?
$144,000 sale price, minus all expenses listed above:
- 8,640 (realtor's commission)
- 4,320 (closing costs)
- 5,760 (repairs)
________________________
$125,280 is what you would net
if you were able to sell.
This doesn't even take into consider all those monthly payments you made while the house sat on the market.
Not a very sensible move, is it?
It’s time to check into some other options if you want to sell your house.
Traditional methods just don't work these days, especially in the market we're currently in.
Contact me if you've been down this road...or worse yet, about to take the path.
You'll be glad you did.
BamaHouseBuyers.com
Monday, April 6, 2009
Friday, April 3, 2009
An Extra $8,000 Tax Credit Applied to the Purchase of Your Next Home!
You may be able to get $8,000 from the IRS if you buy a house before December 1, 2009
A $8,000 tax credit for 10 percent of the purchase price of a house or condo up to a maximum $8,000 is available for first time home buyers until December 1, 2009.
The credit is only for first-time home buyers, with the purchase being required
as a personal residence.
A single buyer is limited to an adjusted gross income of $75,000 or less to be eligible for the full credit. Married couples can have an adjusted gross income of up to $150,000.
The credit only applies to those who buy a home on or after Jan. 1 and before Dec. 1, 2009.
A $8,000 tax credit for 10 percent of the purchase price of a house or condo up to a maximum $8,000 is available for first time home buyers until December 1, 2009.
The credit is only for first-time home buyers, with the purchase being required
as a personal residence.
A single buyer is limited to an adjusted gross income of $75,000 or less to be eligible for the full credit. Married couples can have an adjusted gross income of up to $150,000.
The credit only applies to those who buy a home on or after Jan. 1 and before Dec. 1, 2009.
The Lease Purchase Advantage
Are you trying to sell your house in the traditional way, using Realtors and paying exorbitant commissions and fees? Haggling and negotiating over every dime and detail?
Are you trying to sell by owner, only to find yourself with expensive advertising bills and a house filled with strangers peering into your bedrooms and bathrooms?
Perhaps you’re considering an, “All Cash Today”, offer from one of the local investors, only to discover that you must discount the price thirty percent or more below market value.
If so, it’s time to consider. . . . . . . . . . .
The Lease Purchase Advantage!
* As a seller, you can move your property in a short period of time without paying any real estate commissions, (we are not Realtors)!
* You pay nothing for our services if the Tenant/Buyer does not purchase your house!
* Receive a purchase price at the very top of the market! Even a buyers' market!
* Have all closing costs paid by the purchaser!
* Retain all tax benefits of ownership until property is purchased!
* Tenant/Buyers rather than tenants. They treat your property as if it’s their’s because one day it will be!
* No T’s and T’s, (Tenants and Toilets). Tenant/Buyers are responsible for all maintenance and repairs!
* No rent collection problems. Your check arrives promptly on or before the first day of every month!
A Lease Purchase, properly structured, can be quick to complete, stress free to maintain, and most profitable for the homeowner.
Contact the only Lease Purchase specialist who works for you, the homeowner.
We are prepared to serve your real estate needs, whether you own a $20,000 fixer
or a million dollar estate. Please contact me if you have any more questions.
Are you trying to sell by owner, only to find yourself with expensive advertising bills and a house filled with strangers peering into your bedrooms and bathrooms?
Perhaps you’re considering an, “All Cash Today”, offer from one of the local investors, only to discover that you must discount the price thirty percent or more below market value.
If so, it’s time to consider. . . . . . . . . . .
The Lease Purchase Advantage!
* As a seller, you can move your property in a short period of time without paying any real estate commissions, (we are not Realtors)!
* You pay nothing for our services if the Tenant/Buyer does not purchase your house!
* Receive a purchase price at the very top of the market! Even a buyers' market!
* Have all closing costs paid by the purchaser!
* Retain all tax benefits of ownership until property is purchased!
* Tenant/Buyers rather than tenants. They treat your property as if it’s their’s because one day it will be!
* No T’s and T’s, (Tenants and Toilets). Tenant/Buyers are responsible for all maintenance and repairs!
* No rent collection problems. Your check arrives promptly on or before the first day of every month!
A Lease Purchase, properly structured, can be quick to complete, stress free to maintain, and most profitable for the homeowner.
Contact the only Lease Purchase specialist who works for you, the homeowner.
We are prepared to serve your real estate needs, whether you own a $20,000 fixer
or a million dollar estate. Please contact me if you have any more questions.
Need to Sell Your House?
Conventional wisdom tells us, in order to sell a house, you enter a six month contract with a real estate agent and then wait for a buyer... and wait... and wait...
Well, if you've been down that road and you're about to run out of gas, we offer something much different.
You might be wondering if your specific situation falls into our buying or leasing criteria. It most likely does! We can purchase or lease homes from people facing a multitude of circumstances. We have a solution that will work for every party involved.
If you're ready for some relief and really need to sell your house, it all starts with a private, confidential discussion of YOUR needs (not ours). We will be honest and straightforward with you from the very start and give you an answer either way.
If you're tired of dealing with the hassles of your current real estate situation, contact us.
We might be the solution you've been looking for.
Well, if you've been down that road and you're about to run out of gas, we offer something much different.
You might be wondering if your specific situation falls into our buying or leasing criteria. It most likely does! We can purchase or lease homes from people facing a multitude of circumstances. We have a solution that will work for every party involved.
If you're ready for some relief and really need to sell your house, it all starts with a private, confidential discussion of YOUR needs (not ours). We will be honest and straightforward with you from the very start and give you an answer either way.
If you're tired of dealing with the hassles of your current real estate situation, contact us.
We might be the solution you've been looking for.
Move Your Property Faster, Without All the Expenses
Many homeowners want to set up their own home sale, but have neither the know-how nor the proper contracts to do so.
With our specialized knowledge, we offer this service as well. Our consulting service is for those homeowners who need a properly structured deal as a practical solution to selling or
renting their property themselves.
If you're interested in receiving specialized consulting, tailored to your needs, contact us today.
Or, you can visit our website by clicking HERE.
With our specialized knowledge, we offer this service as well. Our consulting service is for those homeowners who need a properly structured deal as a practical solution to selling or
renting their property themselves.
If you're interested in receiving specialized consulting, tailored to your needs, contact us today.
Or, you can visit our website by clicking HERE.
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