List Categories | List All Articles | List Articles By Title
Selling a House is Easy
The thought of selling a house strikes fear into most people. The contracts, the legalese, the exorbitant costs - they all conspire to make the experience unpleasant at best, and a nightmare at worst. It doesn't have to be that way, though.
Let's take a look at three different scenarios for selling the same house. We'll assume an average house in an average town in America, whose market value has been established at $150,000.
Scenario 1: A Traditional Home Sell
If the value of the home is $150,000, a realtor will often suggest a list price of $149,900 - and rightfully so. Although you lose $100 before the house ever goes on the market, studies show that buyers actually see a difference in the two prices much greater than $100, so the ultimate benefit outweighs the initial loss.
Statistics show that the average home sells for 90 to 95% of the asking price, so let's suppose you accept an offer of 93% - or $139,400. That's not bad, but it's not what you actually walk away from closing with. There are several other costs that figure in.
The realtor, on average, will take a 6% commission. That reduces your price by $8,360 to $131,040. The average seller contribution to the buyer's closing costs is 3%, so your final amount is reduced by another $4,182 to $126,858. Add in $1,000 or so in realtor-recommended upgrades to make the house show better, and your ultimate take is down to $125,858.
The other factor is how long it takes to sell the home. After finding and interviewing realtors, going through the listing appointment and getting the home into the Multiple Listing Service (MLS), your first offer usually will not come in until more than 30 days from the point at which you decided to sell. And from the point that the offer is accepted, it then often takes 60 days or more for the sale to close.
So an average home in an average American town will take more than 90 days to sell, and the homeowner will walk away from closing with just 84% of the home's actual value.
Scenario 2: Using a Discount Realtor
A home selling method increasing in prominence across the U.S. over the past few years has been the use of a discount realtor. These services take a much smaller commission, allowing you to pocket anywhere from 2 to 5% more of your initial asking price - as much as $7,500 for the average house in our example.
The downside of discount realtors is that they often provide services much more limited than a full-service realtor, and while your home does get listed in the MLS, it's frequently not shown by other realtors specifically because it was listed through a discount realtor. In fact, the Wall Street Journal reported in May 2005, that U.S. antitrust regulators are preparing to file suit against the National Association of Realtors for practices they believe are intended to stifle Internet-based rivals and discounters.
So until those practices cease, selling a house through a discount realtor, while cost-effective, may lead to a time-to-sell much longer than the 90 days under a traditional realtor - still a good route if you don't need to sell right away.
Scenario 3: Selling to a Professional Home Buyer
Another home selling method that is growing in popularity is selling the home to a professional home buyer or real estate investor. These individuals will buy a home for 80 to 90% of its market value and can usually close in 10 days or less. It's free to get an offer from a home buyer, and there's no obligation.
Under this scenario, you could easily walk away from closing with more than you would under a traditional scenario and do it in less than two weeks. Additionally, you set the timetable for closing. If you need to sell the house in two months instead of two weeks, the home buyer works on your schedule, instead of the other way around.
The downside of going through a home buyer is the risk of working with someone unscrupulous who doesn't mind taking advantage of you. There are any number of ways to get ripped off and be left with no home and no cash - or, worse yet, no home, no cash, and a mountain of debt. To prevent that, be sure to read "We Buy Houses" Scams - How to Spot Them and How to Avoid Them.
So going through a home buyer, the average home in our example could sell for just as much as through traditional methods, but sell in just 10 days instead of 90 days or more.
These scenarios all assume an average house in an average American town, so your actual experience could vary significantly. Homeowners in red-hot real estate markets like areas of California and Florida, for example, frequently receive offers matching, or even exceeding, their asking price.
So it's imperative to review all your options before you sell. Non-traditional methods are gaining in prominence because they're a very viable, and often better, alternative to going through a traditional realtor. They deserve a good look the next time you decide to sell a house.
Duane LeGate is president of House Buyer Network, one of America's largest networks of home buyers. Since 2002, they have helped more than 45,000 families and individuals who needed to sell a property fast-processing more than $7.5 billion in property during that time.
Title Insurance - Examples of Problems and Advice
What is title insurance and why should any buyer get it when purchasing a home (single family, townhouse, condo, apartment, or whatever format your home purchase takes)? Doesn't the attorney or settlement company handling the closing see to it that you have a clear title? Isn't this just another way for someone to siphon a few coins off a real estate transaction?Title InsuranceTitle insurance prevents the property owner from suffering financial loss if, at any time during his ownership of the property, someone comes along who can show that they have full, or partial, ownership of the property instead. Every mortgage lender I'm aware of requires title insurance be purchased to cover the amount of the mortgage.
What Can I Realistically Earn In A Lease Purchase Business?
If you're looking at Lease Purchasing as a business, you'll obviously want to earn much more than the $20,000 per year in our "How To Give Yourself A $20,000/Year Raise Without Asking Your Boss" article. Let's review the numbers from that article: For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%.
Getting Raw Land, Not a Raw Deal!
There is more to buying raw land than meets the eye and more than a few individuals have wished they'd had a second chance upon finding themselves duped, conned, misled, ill-advised, uninformed, oversold, undereducated and often unprepared. They realize, often too late, that a raw land purchase should be properly investigated, evaluated and negotiated using a logical and rational plan.
Why Use a Property Manager?
Most experienced property investors use property managers. Why? Because they make you money.
How to Buy Your Own Home
Buying Your First HomeBuying Your Own Home isn't nearly as complicated as some folks make it out to be. Your first step should probably be to contact a Mortgage Broker (check out the on-line Mortgage Companies on my Site -- they're a great way to quickly find out how much you qualify for, and they often have better rates than the standard Banks.
How To Go About Selling Your Home On Your Own
In days of booming real estate, you would think that selling a home shouldn't be too much of a task. And if it's going to be that easy then why not do it on your own and save yourself on thousands of dollars in commissions.
How Much Should I Pay For This House?
We probably answer this question for someone a couple times every week. The problem is that they don't have a good formula for determining the most they can pay and still make a profit - so they're scared to make any offer.
Homes in Chapel Hill
Chapel Hill is located right in the middle of North Carolina, halfway between the Blue Ridge Mountains and the Atlantic Ocean. In 2000, the nearly 20 square mile city had a population of 48,715 people and it has substantially increased over the last five years.
Maintaining Small Town Charm In An Ever-Changing World
Virtually any state in the country has the appeal of multiple small towns. Ask almost anyone who lives in small town why they are here and they'll tell you they enjoy the small town feeling while being close to all the conveniences of a larger city.
Thinking About Selling Your Home?
Owning a home is the original American dream. It's the old frontier spirit, wanting to claim your own tuft of the New World.
Russ Whitney and Real Estate Investing Gurus
There is curently a huge real Estate boom in America today. Little does the world know that this boom has some to do with all of the real estate guru's out there.
Home Appraisal Values Are Critical
To most, owning a home is a necessity, but sometimes it is a matter of pride or a business investment. Home appraisal values become relevant if one wishes to sell his house.
Buying and Selling Real Estate in Florida
Florida is known as the "Sun Shine" state, and the reason is clear. People move to Florida for many reasons, but most that move there stay there.
How to Buy a Home When Your in Your Twenties
A Single's Game of Real Estate (Getting started in your twenties)Due to the fact that most of us grow up in either a rented apartment or our parent's single family home, it stands to reason that most people, when beginning to ask themselves the question of purchasing their own dwelling, will come to the conclusion that a condo or small house is probably the way to go. That's a result of conditioning and it's a hard mindset to break! After taking the time to talk to or personally guide a respectable number of people in their twenties, I have come to find that firm, direct and accurate information can really adjust the reality of how real estate can be acquired and used to their best advantage starting with property that sets the tone for a much more profitable and rewarding future.
Real Estate: Reasons and Priorities for Purchasing Property
Real Estate: Reasons and Priorities for Purchasing Property. It's not just about Real Estate as an Investment.
Real Estate Development Marketing
A Specialist Article For Those Interested In Real Estate Development From the desk of Colm Dillon ..
Minneapolis Warehouse Loft
Downtown Minneapolis is rich with true metropolitan charm. With the growth of an incredible entertainment district, a wonderful artistic community, and all the opportunities of a large urban center, downtown Minneapolis is pleasantly thriving.
Real Estate Bankruptcy
Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor.
What Is Home Staging And How Does It Help To Sell My House
Home staging is the concept of preparing a house for sale. This can involve everything from removing clutter, re-arranging furniture and in some cases re-decoration, ensuring that the house creates a great first impression and helps buyer's to feel that they could really live there.
A Simple Step by Step Aproach to Fail Your Way to a Million Dollars
If You want to be Financially Successful you need to Learn to FailAt a Robert Allen Seminar he said the difference between successful people and unsuccessful people (Financially Successful) is that Successful know how to fail. He went own to say that in order to be successful you need to learn to fail, Unsuccessful people fail to get that 9-5 Job that pays $25,000 to maybe $90,000 a year and when they finally succeed what do they have a 9-5 Job.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !