Can I Sell My House For Cash And Still Get A Fair Price?

Can I Sell My Property For Cash And Get A Fair Price?

This is a common question and one you may have if for any reason you are considering selling your house for cash. Many sellers may simply not have the luxury to allow a buyer the time needed secure traditional bank financing. Some properties are in such a condition that banks simply will not loan against the property, these must be purchased with cash. You may have inherited a house that needs repairs in order to sell and may not have the time or desire to do the needed work as well as go through the process of selling the house with a realtor. You may have a property where you have fallen behind on payments and you would like to move on. The list goes on and on of reasons why a seller would look to sell a house or property for cash. Now comes the magic question, can I get a fair price even though my situation or house may not be perfect? Or will someone just try and steal my house and take advantage of me?

At Helpful Homes we buy houses that become available from many different avenues of life. What does not differ is the way we go about making our offers to our clients. At the end of the day real estate is a big numbers game, for the most part. We love the people aspect but we are not here to talk about that at this moment. So back to the numbers, they drive everything. That being said there are fair numbers and unfair numbers. Lets look at an example:

If a house is valued at $200,000 (and how do we determine this value?) Thats a great question, we do so by looking at comparable sales. You find comparable sales by looking at houses with similar square footatge, bed-room and bath-room count, as well as lot size, year built and ideally being within 0.5 miles from each other that have recently sold. We try and get at least three of these comparable sales and determine the value from there.

We are happy to show you the market sales and activity in your area so you yourself can see how we determine these numbers.

Now that we know that, back to the said $200,000 house. If this house is in need of a roof, new kitchen, hvac and two bathrooms need complete updating, there would be a cost for this work to be done. Lets say in this example the repair costs would be as seen below

Roof $7000, Kitchen $9500, hvac $5,500, two-bathrooms $10,000 for a total of = $32,000

From this cost we can determine what price we would be able to offer to you. The idea behind the offer price being, you get a fair value for the home in it’s as-is condition and Helpful Homes has the room to do the needed repairs at a quality and standard that is on par with todays market in both safety and style.

So an unfair offer would be $90,000

An example of a fair offer would be something like $127,000

There are more than simply repair costs when remodeling and updating a home. For example we will have two sets of closing costs, one set when we buy the property from you and another one when we resell the property. We often times pay a 3% commission to a realtor when we sell a home on the MLS. We have to insure the home while repairs are taking place as well as pay taxes on the property as long as we own it. These costs are often over $10,000 and usually forgotten when sellers are running numbers.

$127,000 offer + $2500 closing costs + $32,000 repairs + $6000 real estate commission at 3% of the $200,000 sale + $3000 closing costs on the sale = 170,500 leaving a potential profit if all goes perfect of $29,500 after selling the home for $200,000.

With what it takes to complete a project, there is what we feel to be fair numbers in regards to the profit made. We are happy to lay our cards on the table and give you an insider view of how the financinals break down, so this way you can feel good about selling your house to Helpful Homes.

So just because you are selling for cash does not mean you need to take an unfair offer for your home. Just take the time to research a trusted buyer like Helpful Homes that will make you a fair offer, no matter how quickly you need it, based on fair numbers.

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Can I Sell My House For Cash And Still Get A Fair Price