Home ownership just isn’t what it was in the 1950’s.
In the past, people would buy a home and live there for the rest of their lives, often passing it on to their family. Nowadays that is no longer the case. Many first-time home buyers are going into it with the attitude that they’ll sell when it’s time for a change. What many home buyers don’t realize is that in today’s real estate market, if you’re looking to sell your house quickly, you may become frustrated.
Despite the current market trends in Mercer County slowly shifting, it’s still very much a buyer’s market. With so many properties available, you very well could find yourself waiting months or longer to get a fair price on your home.
How To Sell Your House To An Investor in Mercer County
One option that many homeowners are turning to is selling to a real estate investor like Good Vibes Real Estate Solutions to buy your house from you.
As an investor, we typically purchase homes, repair them, and then use them to generate income; either as rental units or sell them for a profit.
You can find your local investors many ways: There are the “We Buy Houses” signs on the poles in your town. You can also search for your local investors via the internet typing in keywords such as : “sell my house fast , your city and state” or “cash for my house your city and state” or buy my house now, your city and state”. It is very important to put your city and state after your keywords to bring up a list of local investors as opposed to nation wide investors.
Selling your house to an investor is relatively simple.
Once you make contact with an investor, he or she will ask you information about your home and personal situation.
The investor will then set an appointment to inspect the home and determine a fair value, taking into account necessary repairs, and comparable sales in the area. He or she will then make a cash offer. If the offer works for you, then a contract will be signed and sent to the title company to open escrow. Once title comes back clear, you’ll close on the property, and receive the payment for your house in cash… usually within 15-30 days if you want to close that fast.
How Fast Can You Sell Your House To Local Investor?
This process is extremely quick compared to more traditional methods, often taking just 15-30 days.
If you need to sell your Mercer County home very quickly, with little hassle, selling to a Mercer County real estate investor is a great option.
When you work with a real estate investor… you don’t have to worry about paying an agent commission, and most often, the investor will even cover the closing costs.
How Does An Investor Determine the Offer Price?
While real estate investors are often looking to purchase homes at a discount, which will allow enough “cushion” to fix up the property, pay the taxes and holding costs, pay the realtor commissions for resale of the property once fixed up and of course their profit.
Here is an example of how an investor arrives at his offer price. Let’s assume your property is worth $200,000 after it is all fixed up and pretty with updated kitchens and bathrooms and hardwood floors etc.
In order to get the property to be worth $200,000, its needs approximately $60,000 in renovations.
The way we would determine the offer price would be to take 65% of the after repair value or market value which in this example is $200,000. $200,000 x .65 = $130,000. Then we would subtract the renovation costs of $60,000. $130,000 – $60,000 = $70,000. $70,000 will be the maximum offer price for the property.
The reason why we initially start with 65% of the market value is to account for all of the costs involved with holding on to a property for a few months while under renovation (Taxes, Vacant property insurance, utilities etc). Also included in that 65% is the potential profit, closing costs, agent commissions for resale.
There has to be enough “spread” in the deal to ensure the investor does not lose any money, otherwise it does not work.
Many home sellers fail to take into consideration all of the costs and expenses involved with renovating a home. Far too often if you tell the seller their home is worth $200,000 all fixed up and it needs $60,000 in renovations they would expect to get 200,000 – 60,000 = $140,000 as the offer. If that were the case, then no investor would ever make a dime. In fact, they would be losing money every single time.
Just because an offer may be lower than you might have expected, doesn’t mean it’s a bad offer. You can always place your property on the market with an agent, and hopefully it will eventually sell for more than the quick cash offer, but most of the times it turns out not to be the case.
The Hidden Costs Of Waiting To Sell Your Mercer County House
Many people don’t consider the hidden costs of holding on to a property.
Extra months of mortgage payments, utilities, maintenance costs, and other fees could quickly add up. By selling at a slight discount, you could potentially end up with a larger sum in the long run.
By selling your home to a real estate investor, you’re saving yourself possible months of headache, and you can quickly move on to your new home. You’ll avoid expensive fees, closing costs, and investors will purchase your home as-is, assuming the costs of repairs that you’d have to pay if you were selling via more traditional means.
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