Hi everybody, this is Alex from Coastal Edge Homebuyers. Let’s talk about selling a house that needs repairs. If you have an older house, or basically some place that you have not really kept up with over the years and it needs a good amount of repairs, the question may become how do you sell this now, is the smartest thing to do to just call a realtor to sell it? Maybe it is, but maybe not so much in some cases. Let me run you through an example – so if you have a house that maybe it’s worth $250,000 if it’s fixed all the way up (after a total rehab) so, what if your house needs a good amount of work right? The actual value of your house today maybe approx. $190,000. So if you want to try to sell this house on the regular retail Market through an agent, you’re looking for a retail buyer that has to come in and buy this house maybe in the neighborhood of 170k or 190k. Well, but get this now – if you want to sell it that way, you have to remember one thing – if you talk to a realtor and they list it for you, then you’re already automatically minus 10% on an average – 4% percent closing assistance + 6% for the agents (that is split usually between the buying agent and the selling agent) so, if we’re talking about minus 10% for a $200,000 house, this is minus twenty thousand dollars, so you’re looking at automatically at about 180k end price, maybe a lot less depending on what is going to be offered.
There is another thing that you need to consider – the person who wants to buy this house, they have to get a loan; the mortgage company will ask for some inspection report, they want to basically evaluate the place, just as much as you do and basically after the inspection guess what – maybe you have to fix something, so you have to do cleanup you got to do some fixes, possibly replace maybe an air conditioning unit, or windows, or a roof, and these are not small-ticket items right, sometimes it may be as simple as doing a floor maybe or something else like paint, but sometimes it could be more to it, whatever inspection will show, so you have to deal with that it takes time it takes money. There’s also something called “lost opportunity” meaning that if you have to deal with things for two-three months you’re doing these things while your house is not sold yet, guess what – you’ve got to pay all the utilities, you’ve got to pay mortgages that could be easily total three-to-five thousand dollars; these are your “holding costs” so think about it this way.
What is the alternative? Well, you can call a company like ours – We Buy Houses direct – we’re Coastal Edge Homebuyers and we buy houses locally in the Hampton Roads area – anywhere in the 7 cities and we buy houses “as-is”, so what’s the option here? Well, if you call us instead of doing the things that you just heard about above (that you need to do if you sell through an agent) you can actually sell faster to a direct home buyer like us, and guess what – no inspections, no staging, no multiple showings, no commissions, none of that minus 10%, no repairs, no cleanup, not a single thing! That is the convenience of selling a house directly to a home buyer like us. You’re selling the house exactly as-is, you can pick up some things from it if you like, but otherwise leave it exactly as-is – no cleaning, no repairs and better yet, you can choose your own closing date, which can be super handy in cases where you have a certain timeline that you want to sell by.
So, in some cases if your house needs work regardless if it was partial rehab recently, or over the years, or maybe you just didn’t keep up with the repairs, regardless of what the case is, if your house needs work you may want to think twice about listing it directly with an agent, as there may be a better option, a faster option that you may want to explore and that is – to sell to a direct home buyer, like us, without paying commissions, getting a sure-fire closing date, and cash in your pocket within two-to-three weeks, so sometimes this is super important to people and this is exactly how it’s done. If you have any questions, or if you have a house that you need to sell, give us a call. We’ll go through your options, and we’ll help you pick the best one for your situation with Coastal Edge Homebuyers. We Buy Houses locally and we’ll be happy to help you out if you have a situation that you need help with. So just call us at 757-414-7117.