You can see below how we usually buy houses and how much we pay for them. Make sure that these are really good deals for our clients.
Let's take into consideration a house with 3 bedrooms and 2 bathrooms with a Fair Market Value of $ 525,000 (the price is determined by analyzing recently sold 3 bedrooms 2 bathrooms houses within a 1-1.5 mile radius). If the owner were selling this house on the market, then he would bear the following costs:
- the commission to seller's agent is 2.5% - 3%
- the commission to buyer's agent is 2.5% - 3%
- the commission for the title company registration is 1% - 3%
- Often the buyer is given a discount around 3% - 5%. This is the usual discount that can be provided during the bargaining process.
- If a buyer appears right tomorrow, the transaction process will take 1.5-2 months, since the buyer needs to inspect the house, get the bank's approval to issue a loan for this particular house. This means that at least there will be holding costs, i.e. maintenance costs: insurance, utilities, lawn maintenance, etc. This can be as high as $ 700- $ 800 per month, for a total of $ 1500 for 2 months. While the house is being drawn up, there will be monthly payments for mortgage maintenance, this is another $ 1600 per month, for a total of another $ 3200 for 2 months
- When the mortgage is closed early, the financing organization also takes a commission, it can be different in this case it was $ 12,000
If a buyer appears right tomorrow, the transaction process will take 1.5-2 months, since the buyer needs to inspect the house and get the bank's approval for a loan on this house. This means that at least there will be holding costs: insurance, utilities, lawn maintenance, etc. These costs may be as high as $ 700-$ 800 per month and $ 1500 for 2 months in total. While the house is being registered, there will be monthly payments for mortgage maintenance, this is another $ 1600 per month or $ 3200 for 2 months in total. When the mortgage is closed early, the financing organization also takes a commission, it can be different in this case it was $ 12,000.
| Sale on Market | Sale to us | ||
| Fair Market Value | $525 000 | ||
| Seller Typical Expenses | |||
| The fee of seller's agent | 2,5%-3% | $13 125-$15 750 | 0 |
| The fee of buyer's agent | 2,5%-3% | $13 125-$15 750 | 0 |
| Bank fee for early repayment of a mortgage | $12 000 | 0 | |
| Title company | 1%-2% | $5 250-$10 500 | 0 |
| Holding costs (2 months) | $1 600 | ||
| Monthly mortgage payments (2 motnhs) | $3 200 | 0 | |
| Standart discount | 3%-5% | $15 750-$26 250 | 0 |
| Total | $64 050-$85 050 | 0 | |
| Net SALE Price | $460 050-$439 950 | $430 000 | |
All these calculations are only possible if a buyer is found as soon. Actually, it takes a very long time for the real estate on the market to be sold and also it depends on the house condition. Ideally the house should be free of residents, since buyers tend to look at an empty house, not at the house cluttered with furniture from the previous owner. In other words, you should always keep in mind that there will most likely still be costs for several months, during which the house is on sale. As a rule, by the time of contacting us, people have been trying to sell their house for several months but to no avail. As you can see, we do not take a house for next to nothing, we offer a very favorable price ($ 430,000) and moreover, the sooner you contact us, the less costs you will incur, since we will arrange everything in 7-10 days.