Most people are familiar with the traditional real estate transaction.
You contact a realtor, they come in and take a look, start taking pictures and list it on the MLS. This is usually where the "marketing" process stops. From there, it's all about talking to buyers and qualifying them.
The challenges you face with a traditional transaction is everything in between.
First of all, if you want to get any sort of decent price (or even a speedy sale), you have to make repairs to the home. This is immediate thousands of dollars out of pocket to raise your curb appeal, replace some fixtures, and do all those touch-ups that the realtor thinks will be mandatory.
The reality is you may not have that type of money just laying around, and even if you did, you may not make your money back in the sale, especially after all the commissions and fees.
The costs of selling your house with a realtor
If we dive into everything related to selling your house on the MLS, it looks like this:
- You spend $10,000 to $15,000 to make the initial repairs on the home.
- Your home is on the market for 3-6 months, sometimes more, depending on the season and if the location is in-demand, costing you $1,500 per month or more that you didn't want to spend.
- You have to deal with showings and unqualified buyers viewing the home and potentially taking your time.
- Buyers put in offers, but they will require an inspection to be done.
- The buyers negotiate the price based on the appraisal (required by their bank) and inspection.
- After all the negotiation, the buyers back out either because they aren't able to get you to go down on the price enough, found another home, or their financing fell through.
- Steps 3-6 repeat.
- You finally find a buyer, but they have negotiated you down $5,000-$10,000 for all the things the inspector found.
- You pay 6% for commissions plus 1%-2% for costs at closing, which for a $150,000 home is between $10,500 and $12,000.
For your $150,000 home, you've spent up to $15,000 on repairs, dropped your price by $5,000-$10,000 AND lost $10,500-$12,000 to commissions and closing costs.
You end up taking $113,000 from the sale that took you 6 months or longer to complete.
You can immediately avoid sinking $10,000 to $15,000 into your home in repairs.
You won't have to let your home sit on the market for half a year.
You won't have to pay any fees or get surprised by any gotchas at closing.
You won't have to worry about bank approvals or financing falling through because we are using private money.
And we can get started TODAY!
