Get More for Your Home
Recently, a homeowner, Ashley (not her real name), contacted a company that advertises to buy homes for cash and then allow the seller to close when they want. Ashley subsequently received an offer on her home and was, needless to say, put off by the proposal. The offer broke down as follows:
Net seller proceeds
*Closing costs were not included in the offer, but were included as part of the table above to show the total costs of closing the sale; these closing costs are inherent in any transfer of real estate.
The property valuation was the value that the company’s “team of local real estate professionals and proprietary data model” determined was the market value of the home. The operating costs represented the holding costs and costs of minor repairs that may need to be accomplished on the home, and represented an additional revenue stream for the company. In the end, Ashley received a cash offer for $312,248 for her home. Oh by the way, the seller still would have to pay for closing costs, such as title insurance, escrow fees, reconveyance fees, recording fees, property taxes, and HOA disclosure fees, which total another $4,096. To be fair, these costs are a part of ANY real estate transaction and are typically described within closing costs. In the end, the investment company’s offer would net the seller $308,152.
Fast forward a month and a half. Our real estate brokerage put the homeowner’s house on the market, had it under contract in 12 days, and closed it within 30 days of the contract. Here’s how the numbers broke down for Ashley:
|List price (valuation)
Net seller proceeds
Our valuation of the market was based upon our decades of local knowledge and experience within the seller’s market and our expertise told us to place a much higher value on the property. Additionally, because Ashley used a professional real estate broker, her operating and closing costs were lower by $5,752 when compared to the investment company offer, even with commissions figured into the equation. Our client made $17,352 more by using our services when compared to selling to the investment company. Let me say that again: Ashley made $17,352 more with us.
Ashley made $17,352 more with us.
So the next time you receive a letter in the mail from an investment company saying that you can sell a home for the most money with them, you will know how the numbers really work out for you. Contact Alex and Jenny Casteel to maximize your real estate profits just like Ashley did. Alex and Jenny have years of experience and and have an interest in seeing you and your neighborhood thrive.