Realtors Vs The We Buy Houses Cash Companies

When deciding to sell your home you have two options. You can either use the services of real estate broker or you can sell it yourself to a “We Buy Houses Cash” company. Each scenario has its pros and cons which we have outlined for you below. Every situation is different and we want to make sure you make the best decision possible. We have also outlined some key questions you should ask yourself before making this big decision.

Realtors. Realtors are the best source for selling your property. It’s a proven fact that realtors will get at least 10-20% more for your property than you would if you sold it yourself. It is also a proven fact that you will sell it 50% faster using the services of a local real estate agent. Since most agents are current on up to date trends they will be able to guide you in what items need to be addressed in order to get maximum price for your house. With an agent who specializes in your neighborhood they may have connections to buyers through colleagues and past clients that you do not have access to. An agents network is a very powerful tool to getting your house sold fast. I recommend using bigger cooperate brokers such as Berkshire Hathaway or Coldwell Banker Gundaker.

With any service provider their is a cost of doing business. The average expense for a realtor is 6-7% of the sales price of your home. For example if you sell your home for $200,000 it will cost you anywhere from $12,000-$14,000 at closing. If you decide to use a real estate professional to sell your property then you will more than likely be dealing with financed buyers which means you might possible have to pay seller commissions ranging anywhere from $3,000 – $5,000. Selling to a financed buyer also means once you sign a contract to purchase you will usually have to wait anywhere from 30-60 days to close. Let’s also not forget the cost of inspections. Most cities require the house pass an occupancy inspection. When the city sends there inspector out there may be items that don’t meet city requirement which may get costly to fix. The potential buyer will also hire a private inspector due to there own due diligence to see what the house may need. This can also get costly if the buyer has high demands before deciding to move forward with the purchase. The extra money you make hiring a real estate professional may cancel out with the expense of broker fee’s and inspection expenses.

We Buy Houses Cash Companies. These companies often get a bad wrap in the area. They are often thought of as scam artists or dishonest people when in reality these companies can be of great service to people. Just like anything there are pro’s and cons to taking this route. Since these ugly house buyers are investors they are not going to give you full price for you home. They are usually buying properties anywhere from 50-60 cents on the dollar.

But before you kick these guys out of your house take a moment to think about the benefits of selling to a cash investor. Fast Cash! In most cases these buyers have the cash to buy the property immediately. Not only will it be a cash sale but you don’t have to worry about paying any seller concessions. Often times they will even cover your closing costs which will save you additional money. These cash buyers will also save you on those hefty realtor commissions. Since your property is a for sale by owner there will not be any broker involved. No broker = NO FEE’s! Did I mention there will not be any inspections done. Since it will more than likely be an AS-IS cash sale the buyer will not bring a city or private inspector through which means you don’t have to do any repairs to the property. So even though you may not get full price for what you think your home is worth you will be saving tens of thousands of dollars in fee’s and repairs. It makes the deal even sweeter knowing they can close in as little as 7-10 days if needed. The best part about selling to a cash investor is that you can leave the unwanted items in the property so you can save even more money on moving expenses.

This is a big decision that should not be take lightly. There are some questions you need to ask yourself before deciding which route to take.

1. Does the home need repairs?

2. Is the home outdated to today’s standards and what other similar homes look like?

3. Do I need to sell immediately?

4. Is the repair list too much for me to handle right now?

5. Will a fast sale take the burden off my shoulders of dealing with this property?

If you answered yes to any of the questions above then you will probably want to consider selling to a local real estate investor who has the cash to close right away. A fast cash offer with no realtor fee’s, closing costs or hefty moving expenses may be the best fit for you. If the home has been kept up and maintained pretty good over the years and you can afford to sit on it for a while then your local real estate agent will be the best option for you and your bank account.

Click the following for more information on Berkshire Hathaway or Coldwell Banker Gundaker.

What Does It Really Cost To Buy A Home?

It is important to know exactly what costs on top of the purchase price you’ll be responsible for when purchasing a new home. Closing costs often come as a surprise to new home owners and can be quite considerable (between 1.5% and 2.5% of the purchase price), so it is important to budget for them in addition to your down payment, moving, and decorating costs. What are closing costs? Here is a brief list.

Home Inspection: An inspection by a certified professional is for the benefit of the buyer and helps to alleviate concerns with respect to the condition of a property. A home inspection costs between $400 and $500.

Mortgage Appraisal: Lenders require an appraisal of a property to determine market value prior to processing your mortgage. While often waived by the lender, appraisals can range from $150 to $450. Some lenders also charge a mortgage application fee.

Property Survey or Title Insurance: When a new survey is not available, Title Insurance protects Buyers from losses due to title defects. While a survey can cost over $1,000 depending on the size of the property, title insurance typically starts around $275.

Land Transfer Tax: Payable to the province, this tax is calculated in tiers as a percentage of the selling price of a home (visit http://www.callthom.com/resources/calculators/ ). First time home buyers can qualify for a refund of up to $4000.

Home Insurance: Mortgage lenders require a certificate of insurance when you take possession of your home. Like all insurance, the price varies depending on a number of variables but ranges from $750 to $1,500 for most properties.

Adjustments (between Seller and Purchaser): Buyers are required to repay the Seller for prepayments they have made in relation to the property such as property taxes, utilities, condo fees, or topping off the oil tank.

Legal Fees and Disbursements: Your lawyer will charge fees for professional services including title search, drafting the title deed and preparing the mortgage. These fees vary, but expect to pay between $600 and $1,000, plus out-of-pocket and miscellaneous expenses up to $350.

Harmonized Sales Tax (HST): Resale homes are not subject to HST, however, HST is payable on the sale price of a newly constructed or a significantly renovated home. HST is also collected on professional fees, and on Canadian Mortgage and Housing Corporation (CMHC) Insurance fees.

Not all of these costs may pertain, and depending on your circumstance, others may apply. It is best to speak to your lawyer for more information.

Defensive Buying – 5 Ways to Buy Smart in a Down Economy

Depending on where you live, your local real estate market may be experiencing a downturn. Historically, these market adjustments have served as a natural protection against runaway price inflation, and in the long-run can be very positive, but as a buyer in one of these markets you must buy smart to protect your financial future.

Here are 5 ways in which you can take advantage of a down market and protect your interests for the future at the same time…

1. Look at the local job market. Know who the major employers are in town and where their employees typically live. Read the papers and pay attention to the stability of these employers. If the company is in financial trouble, or is going to lay off employees, be careful about buying in areas heavily populated by their employees. Yes, you may get a great deal, but home prices may drop dramatically around you and cause you to lose money. Plan for that in your negotiations.

2. Research new commercial developments in your area. If you discover that a new retail / commercial center is going in near an area you desire to live in, take the time to find out what stores are planned for the development, and look at how things like traffic flow and access are going to be addressed. A bad plan can negatively affect area property values, but conversely a well-planned development can draw buyers like a magnet raising property values.

3. Learn about zoning. If you buy a home right next to land zoned for commercial development and you do not realize it, your property value could be negatively affected by the increase in traffic and the type of development. If you are looking in a fully-developed residential area this may not prove to be much of a factor, but be aware of any nearby open spaces and their zoning that could make access to your residential area more challenging. Again, good developments can be to your benefit, but consider how the changes could affect value in your negotiations.

4. Drive the area you desire to live in. Take a camera and a note pad to record what you find. Look for things like for-sale signs, blighted properties, new construction or residential developments, open lots and land, road construction and access, and the availability of retail services. Lots of ‘for sale by owner’ or real estate signs could spell trouble as numerous homes for sale could cause a price reduction war to sell. Again, it may be to your benefit, but you must consider this in your negotiations.

Blighted properties will reduce the value of homes in the immediate area, and new construction, or anything that increases housing density can ultimately reduce value in a slow market as inventory increases and the number of buyers decreases. Be wary of new developments without any noticeable construction activity as there may be financial issues that could affect the value of all of the homes in the area. Don’t be the sucker that pays top price for a home nobody wants.

Open lots and the availability of land can be a positive depending on the area you are looking in, but keep in mind that zoning can change and there are lots of commercial developers out there looking for any sliver of land possible to develop in many markets.

5. Negotiate strongly with the seller. I am a firm believer in homes being exchanged for fair market values, meaning the transaction should be a win-win, but that doesn’t mean you cannot, or should not attempt to negotiate your best terms. Do your research and come to the table armed with extensive, current market knowledge, and a willingness to set your final terms and stick with them. Be reasonable, but firm. Be aware of the long-term implications of your purchase and ensure you have an exit strategy in place. Most importantly, do not be afraid to stand your ground. If you have done your research, the numbers will speak for themselves.

I hope these ideas will help you make a smart purchase in a down market. You must keep in mind that even if you get a great deal on a home, the market can continue to slow down and negate your gains. Know your market well enough to withstand the fluctuations. Above all, secure competent, knowledgeable assistance from professionals in the real estate industry to answer your questions and educate you so you can buy smart in our current market.