Considering a Cash Offer? How Much Less Can You Expect from a Cash Buyer
If you’re thinking about selling a house for cash, you may be worried about whether selling your home fast for market value is possible. Get a feel for how much you’ll probably get for your house from a cash buyer and learn how Sell Your House Direct’s approach goes beyond the actual cash offer to help you find a genuine solution to your real estate problem.
Cash Offers are Generally Less
It doesn’t matter who is buying your house; whether private buyer or investor, cash buyers almost always offer less for your home than asking price. There are several reasons why that is:
- Less chance of the deal falling through
- It’s typically faster to close with a cash offer
- Cash offers are often as-is so you save money on repairs
- It can cut out the appraisal contingency that many mortgage companies insist on
- You get your money faster
It doesn’t matter how many offers you get, nearly all cash buyers offer around the same price. You can expect an offer between 65% and 70% of your home’s value after renovation.
At that margin, it is easy for sellers to feel they are receiving a “Lowball” offer when they talk with a cash buyer. However, there are a few points to consider because in a lot of cases the actual value of a cash offer from Sell Your House Direct is much closer to what you’d expect when selling a home traditionally than sometimes seller’s think.
You Don’t Pay Commission
With Sell Your House Direct, there’s no commission. This can be a huge savings, especially since sellers are oftentimes expected to cover the buyer’s commission, as well. The average California real estate commission percentage is about 6%. While you can always negotiate real estate commissions, you’d be hard pressed to find a real estate agent who would offer to work for free.
You Don’t Pay Closing Costs
The fees you pay at closing as a seller in a traditional real estate transaction add up quickly. In fact, real estate experts state that sellers can expect to pay between 2% and 5% of their home’s value in closing costs.
No Repairs are Necessary
We buy houses as-is. That means that you don’t have to make any repairs and that can save you a fortune in cash and a gigantic headache, as well. You don’t need to worry about what kind of updates get the highest ROI or whether the hot water heater should really be replaced in the very near future. It’s just not your problem when you sell to us. That move-out cleaning? Also not your problem.
You Get Out as Fast as You Want
Trying to scrape together the money for your next mortgage payment? Can’t stand to have that debt hanging over your head for another month? We’ve got your solution.
You don’t have to wait for your house to sell, the paperwork to get done, then wait for financing to go through, then finally limp along to closing day. We can get the deal done in as little as a week. You don’t have to pay another mortgage payment.
Need a month to find a new place? That’s not a problem, either. You let us know when you want the deal to get done.
Moving is a gigantic burden. To help ease the transition and take some of the financial pressure off, we offer $1,000 to help with moving costs.
Understanding The Difference Between List Price and Net Price – A Seller’s Secret Weapon
It is very important to understand the terms “List Price” and “Net price” when it comes to selling your home.
A List price is what an agent thinks they can sell your house for based on their analysis of homes in your area. List price does not mean that is what your home will sell for, nor is it how much money you get in your pocket once everything in the sale is said and done. Assuming you sell your home for the list price, you still have to pay commissions, closing costs, and often minor repair fees. That usually runs about 10% so you will typically walk away with 90% of the list price from that home minus whatever you owe.
A Net price is that 90% minus what you owe – what you actually get when you sell your property and EVERYTHING (except taxes) is said and done from the sale of the home.
This is what should always be the most important to any seller as it is the true value of your property.
Quotes are Risk Free
When you take into account all of the above, the offer you’ll get from Sell Your House Direct is much closer to an offer you’d likely get from a ‘regular’ financed buyer if you were to list your home traditionally.
It’s important that you keep in mind that an offer from Sell Your House Direct is just that: an offer. You’re under no obligation to accept it won’t work for you or you’d like to try your luck selling conventionally first. Bearing that in mind, don’t hesitate to give us a call and get a quote! You’ve got absolutely nothing to lose and a monkey off your back to gain by giving us a shot.