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Few realtor agents (or anyone else
for that matter) will spell out exactly of what you should be
aware as you enter the process of selling your house. We do
and will ... right here and now. Here is the "Real
World" for Sellers following the traditional
selling process:
- Right now, with this buyer's market,
it takes 6-12 months on average to sell and close on your house while
you continue to pay the house loan, principal, interest, taxes, and
insurance.
- The average selling price is 97% of your listed price for a home
ready to market and priced correctly. (Granted, this is from
figures taken at the beginning of last year. Since then the
housing market has softened considerably and this figure has
dropped. However, for the purposes of the example below, let's keep
it the same, for now.)
- The average commission is 7% of the sales price.
- The seller normally pays closing costs, which average 3% of the
sale price.
- Other costs such as survey, maintenance, repairs and nuisance
costs should also be considered.
- Many sellers write a check at closing...just to sell their home.
- We have a better way!
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Here's an example using national
averages. Assume your mortgage balance is
$150,000 and your home is worth $175,000.
Conventional way
Listing Price: $175,000
Selling Price: $169,750
(97% w/no repairs)
Commission (7% ave): $11,882
Closing Costs (3% ave) $5,092
Other Costs: $8,487 (5% average)
Net Sale: $144,289
Result: You write a check for $6,000 at
closing. (ouch!) |
A BETTER way
Listing Price: $175,000
Selling Price $150,000 (As-is)
Commission: $0
Closing Costs: $0
Other Costs: $0
Net Sale: $150,000
Result: You sell your house "as-is" for a fair price on the date of
your choice! |
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