If you are considering selling your house soon, it’s a good idea to use neutral paint colors that appeal to most buyers. Below are the Top 10 Paint Colors from Sherwin Williams. Are you interested in selling your house? We buy houses with ANY paint color! 😃
Request an Offer by clicking here or call 321-710-7355 to get a Fast, Fair, Cash Offer within 24 hours! #cashforhouses #orlando #webuyhouses #webuyhousescash #webuyhousesfast #webuyhousesforcash #realestate#florida #debtfree #ucf #sellmyhouse#sellyourhome #probate #divorce#retirement #landlord #bankruptcy #foreclosure #realtor #realtorlife #orlandoflorida #fastcash #nohassle #painter #remodeling #remodel #winterpark #investor #investors
0 Comments
Are you weighing the option of hiring a REALTOR® to list your home versus selling to a cash buyer, such as Sell Orlando Now? In this post I will recap key points of each approach to selling your home so that you can determine which method works best for your situation. In Part 1 I discussed the differences in Sale Price and Commissions and Fees. In Part 2 I discussed Closing Costs. In Part 3, I explained the differences in Home Condition and Repairs Needed. In Part 4, I reviewed the differences in Time to Close. In this post, I will recap the various aspects for each approach. Sale PriceWhen you hire a REALTOR® and sell your home on the retail market, you will be able to sell your home for the full market value that a buyer is willing to pay based on your house and market conditions. When you sell your house to Sell Orlando Now, you will get a fair price, but it will be less than the retail market value; however, you will get to keep 100% of the sale price because you will not have to pay for any commissions, fees, closing costs, or repairs! Commissions & FeesWhen you hire a REALTOR® to sell your home, their commission will be deducted from the proceeds of the sale. This varies depending on the brokerage, listing agreement, and sale price, but is generally 5-6% of the sale price. When you sell to Sell Orlando Now, there are NO commissions or fees, you get to keep 100% of the sale price! Closing CostsWhen you hire a REALTOR® to sell your home on the retail market, there will be certain closing costs that will get deducted from the proceeds of the sale. This amount varies depending on the sale agreement, property taxes, and sale price, but is generally 2-3% of the sale price. When you sell to Sell Orlando Now, we pay ALL of the closing costs, so you get to keep 100% of the sale price! Home Condition & RepairsWhen you sell your home on the retail market, most buyers will want the house to be in good condition, with repairs completed, and ideally updated to current standards and modern finishes, but some buyers will accept a reduction in sale price. When you sell to Sell Orlando Now, it doesn't matter what condition your house is in, we will buy it AS-IS. That means you do not have to do any painting, cleaning, updating, or make any repairs! Time to CloseWhen you sell your home on the retail market, it can take a very long time. Currently, in the Orlando area, the average number of days from Listing Agreement to Closing Date is 97 days. When you sell to Sell Orlando Now, the process is very fast; we are able to close in as little as 14 days! Recap: Hiring a REALTOR® VS. Sell Orlando NowSelling your house is an important decision with several aspects to consider.
If you have the luxury of waiting 75 to 120 days to sell, don't mind the hassles associated with listing your house on the retail market, and are okay with paying commissions, fees, closing costs, and repairs, then listing your home with a REALTOR®, is definitely your best choice. Conversely, if you want to sell your house fast, without any of the hassles associated with a retail sale, and save money on commissions, fees, closing costs, and repairs, then selling your house to Sell Orlando Now, may be a perfect fit. If you have decided which option is right for you and you are ready to move forward with selling your home either through a REALTOR® or to a cash buyer such as Sell Orlando Now, we would be happy to help you with either option. Click the button below and complete the simple online form, or call us at 321-710-7355 to get started. Are you weighing the option of hiring a REALTOR® to list your home versus selling to a cash buyer, such as Sell Orlando Now? In this post I will continue to compare the two approaches to selling your home so that you can determine which method works best for your situation. In Part 1 I discussed the differences in Sale Price and Commissions and Fees. In Part 2 I discussed Closing Costs. In Part 3, I explained the differences in Home Condition and Repairs Needed. In this post I will review the differences in Time to Close. Time to Close: REALTOR®When you hire a REALTOR® to help you sell your home, you sign a listing agreement with the broker, including all of the various details about your property, and the property is listed on the Multiple Listing Service (MLS). The MLS is a web-accessible list of properties for sale, used by REALTORS® to market and find properties for sale for their clients. Once your property is listed in the MLS, REALTORS® and their clients will be able to see that the property is for sale and read the details about the house. REALTORS® representing buyers will contact your REALTOR® to coordinate a time for their buyer to visit your house. This is called a "Showing". Your REALTOR® may also hold "Open Houses", which are designated times when buyers may stop in to see the property. During showings and open houses, the house should be clean, clutter-free, and ideally, you, as the Seller, should not be home. If a Buyer is interested in purchasing your property, they will make an offer, which your REALTOR® will promptly present to you for review. You will review the offer price, any contingencies the potential Buyer has included, as well as the proposed closing date. Some common contingencies include inspection, financing, and sale of the Buyer's current home. If you accept the offer, your REALTOR® will change the status of your listing to "Pending", the Buyer's earnest money deposit will be placed into an escrow account, the Buyer will have the inspection and appraisal performed, as they begin to line up their financing, and the title company will perform the title search to ensure there are no liens or other encumbrances against the property. If necessary, the Buyer will list their current property on the market. After the inspection and appraisal, the Buyer may request a discount for any repairs or conditions that the inspector has identified, or a price reduction if the house appraises for less than the Buyer's loan amount. If you deny the request, the Buyer may still proceed with the purchase, or they may walk away and your home will go back on the market as an "Active" listing, starting the process over again when another Buyer submits an offer. Once the Buyer's inspection, appraisal, financing, and all other contingencies are resolved or expired, it will be time to close. The time between Listing Date to Closing Date can vary widely. Some factors that affect the time to close include property location and condition, mortgage rates and market conditions, setting an appropriate listing price, and the marketing efforts of your REALTOR®. Based on these factors, it could take 60 days to close or it may take 180+ days. Based on the May 2019 Market Pulse Report from the Orlando Regional REALTOR® Association (page 10), in April 2019 the average number of days from Listing to Contract was about 57 days and the average number of days from Contract to Closing was about 37 days. So on average, that's a total of about 97 days from the day you list your house for sale to the day you actually close on the sale. Time to Close: Sell Orlando NowWhen you sell your home to Sell Orlando Now, the process is MUCH faster. Because we do not need to get financing lined up with a traditional mortgage lender, the we are able to close the sale very quickly. Typically, we can close on the purchase of your property in as little as just 14 days! That's right, you can convert your house into cash in just 2 weeks. To put that into perspective, that is about 700% less time than the average days to close on a traditional retail sale! Recap: Time to CloseWhen you sell your house the traditional way, which is listing it on the MLS with a REALTOR®, it is not a fast process. Even if you have a terrific REALTOR®, it takes time to list the property, show the house to potential Buyers, negotiate the contract, perform inspections and appraisals, re-negotiate for any repairs needed, and get financing lined up. If the Buyer needs to sell their current home, that comes into play as well. The current average number of days between Listing Date and Closing Date in Orlando is about 97 days. But when you sell your house for cash to Sell Orlando Now, we can close in as little as 14 days, which is 7 times faster than a traditional sale on the retail market!
There are several other aspects to consider, some of which have been covered in earlier posts, but if you have any questions or would like to discuss further, please feel free to call our office at 321-710-7355, or email us at info@SellOrlandoNow.com. If you have decided which option is right for you and you are ready to move forward with selling your home either through a REALTOR® or to a cash buyer such as Sell Orlando Now, we would be happy to help you with either option. Click the button below and complete the simple online form, or call us at 321-710-7355 to get started. Are you weighing the option of hiring a REALTOR® to list your home versus selling to a cash buyer, such as Sell Orlando Now? In this post I will continue to compare the two approaches to selling your home so that you can determine which method works best for your situation. In Part 1 I discussed the differences in Sale Price and Commissions and Fees. In Part 2 I discussed Closing Costs. In this Post 3, I will explain the differences in Home Condition and Repairs Needed. Condition & Repairs: REALTOR®When you hire a REALTOR® to help you sell your home to a retail Buyer, it will need to meet certain condition requirements. This means you will need to make repairs, or in some cases, accept a price reduction. You will also be expected to remove all trash, furniture, and any other property from the house. The typical retail home Buyer will not have enough cash available to purchase the property outright, so they will plan to finance a portion of the sale price via a mortgage loan. For most mortgage loan products, the lender will require that the home pass an inspection and an appraisal. The lender wants to ensure that the home is livable, meets all condition requirements of the loan program, and that the loan amount is equal to or less than the home’s appraised value. Additionally, the typical retail home Buyer will want to purchase a home that is clean and in good condition; retail Buyers do not want to purchase a home that needs to be cleaned out or requires a lot of repairs. Most Buyers will have a home inspection performed. According to the American Society of Home Inspectors, “The standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.” The inspector will provide a report detailing all of the major and minor issues identified. At this point, the Buyer may request that you, the Seller, either repair certain items or agree to reduction in the Sale Price. If the Buyer and Seller cannot reach an agreement on the repairs and/or price reduction, the sale contract is cancelled and the house will go back onto the market as you wait for an offer from another Buyer, and start the process over again. Chances are though, that the new Buyer will likely request the same repairs or credits. In addition to the home inspection, an appraisal will be required if the Buyer is financing the purchase. According to Forbes.com, “A home appraisal is an unbiased determination of the fair market value of the home by a professionally-trained third party.” The appraiser will perform an inspection to ascertain the property condition, and to evaluate any specific items that are required by the loan program. For example, if the Buyer is purchasing the home with the use of an FHA Loan, the home must be a complete marketable property, have an adequate heating system, cannot have any lead based paints, cannot have any exposed electrical wiring, must have full exterior walls that are undamaged, must have no hazards in the home, must be of quality construction, must have proper drainage, must have a quality roof not in need of repair, must have safe and public access to the home, must have safe drinking water, crawl spaces must have natural ventilation, and must have gas, water, sewage, and electric utilities available. In addition to property condition, the appraiser will also perform an analysis of the recent sales of comparable properties to determine the fair market value of the property to ensure that the lender is not providing a loan for more than the property is worth. If the appraisal report indicates that the home conditions do not meet loan program requirements, or that the home value is less than the loan amount, the lender will not approve the loan. In this situation, you, the Seller, will need to make repairs, and/or will need to agree to a lower selling price. In some situations, the Buyer can agree to bring additional cash to the closing table to make up for the difference between the appraised value and the higher selling price, but most Buyers will not want to do that and will cancel the contract, which means the selling process will start over, waiting for a new offer from another Buyer. As was the case with the home inspection, a new Buyer will likely request the same repairs or reduced price. Condition & Repairs: Sell Orlando Now
We will send a team member to view the property; however, this visit is simply to verify property condition and to determine any repairs that WE will need to make. We will not ask you to make any repairs or changes to the property, or to correct any work or repairs that were done to the property in the past. The price that we offer you will take into consideration the current home condition and all repairs needed. Unless there a latent defect that is unable to be detected during our inspection (which would be extremely rare), the price that we offer you is what we will end up paying; we will not ask for a reduction based on repairs needed.
Recap: Home Condition and Repairs Needed When you hire a REALTOR® to list your house on the retail real estate market, you can expect the Buyer to have a home inspection and appraisal performed. Your home will have to meet certain requirements of the Buyer’s lender and loan program, and most Buyers will expect you to either make repairs or accept a price reduction.
When you sell your home to a cash buyer, such as Sell Orlando Now, there will be an inspection performed; however, the offer price will be for the house in AS-IS condition. You will not have to make any repairs, remove any property or trash, or have the house cleaned. Since the house is being bought with cash, an appraisal will not be required. There are several other aspects to consider, which I will cover in later posts, but if you have any questions or would like to discuss further, please feel free to call our office at 321-710-7355, or email us at info@SellOrlandoNow.com. If you have decided which option is right for you and you are ready to move forward with selling your home either through a REALTOR® or to a cash buyer such as Sell Orlando Now, we would be happy to help you with either option. Click the button below and complete the simple online form, or call us at 321-710-7355 to get started.
Closing Costs: REALTOR®When you hire a REALTOR® and list your home on the retail market, there are certain closing costs that are typically paid by the Seller, which the Buyer will expect you to pay. When you work with a REALTOR®, those closing costs will be deducted from the sale price of your home. Typical Closing Costs paid by Seller when listing with a REALTOR®:
Based on the most recent Housing Report by the Orlando Regional REALTOR Association (February 2019), the median home price in Orlando, Florida is $235,000. So, if you sold your home on the retail market in July 2019, and paid the typical seller's closing costs, you'd could expect to have $4,770 - $5,120 deducted from the Sale Price. Additionally, as mentioned in the Part 1 post, the REALTOR's commission and fees would also get deducted. Using the same values used in that example, that would equate to another $14,700, for a total amount of $19,470 - $19,820 (NEARLY $20,000! 😲) payable by the Seller, deducted from the Sale Price. Therefore, the net proceeds to you, after the sale of your home for $235,000, would be about $215,000. Closing Costs: Sell Orlando NowWhen you sell your home to Sell Orlando Now, it is much simpler to calculate the closing costs... they are $0. That's right, WE PAY ALL OF THE CLOSING COSTS! There are no closing costs or fees that you, as the Seller, have to pay, so you get to keep 100% of the Sale Price. Closing Costs paid by Seller when selling to Sell Orlando Now:
ALL of the closing costs are paid by Sell Orlando Now, in addition to the Sale Price offered for your property. So if you sold your home to Sell Orlando Now for $225,000, you could expect a total of $0 in closing costs, deducted from the Sale Price. Additionally, as mentioned in the Part 1 post, there would be no commissions or fees either, so you'd receive the entire Sale Price of $225,000. Recap: Closing CostsWhenever a home is sold, there are various closing costs that have to be paid. Some of the costs are typically paid by the Buyer and some by the Seller. When you sell your home on the traditional real estate market to a retail buyer, you will be expected to pay some of the closing costs, as is customary in our market. As shown in the example above, for a median priced home of $235,000, this can be about $5,000 that will get deducted from the Sale Price of the home, along with any REALTOR® commissions and fees, which are about $14,700 on the same price home, for a whopping total of nearly $20,000 that will be deducted from the Sale Price of your home!
Alternately, when you sell to Sell Orlando Now, we pay ALL of the closing costs, and there are no commissions or fees. There are several other aspects to consider, which I discuss in other posts, but if you have any questions or would like to discuss further, please feel free to call our office at 321-710-7355, or email us at info@SellOrlandoNow.com. If you have decided which option is right for you and you are ready to move forward with selling your home either through a REALTOR® or to a cash buyer such as Sell Orlando Now, we would be happy to help you with either option. Click the button below and complete the simple online form, or call us at 321-710-7355 to get started. Are you weighing the option of hiring a REALTOR® to list your home versus selling to a cash buyer, such as Sell Orlando Now? In the next few posts, I will compare the two approaches, so you can decide what works best for you. In this first post, I will describe the differences in Sale Price and Commission and Fees.
When you sell your home to a cash buyer, like Sell Orlando Now, you will receive a fair price for the property considering its current condition, but because the cash buyer will be putting money into the property to fix it up and re-sell it, you will receive less than retail market value when you sell to a cash buyer. Commission & Fees: REALTOR®Real estate agents are paid via commissions. When you list your home with a REALTOR®, you will pay a commission, which is negotiable, but 6% is typical, with 3% going to the listing agent/broker and 3% going to the buying agent/broker. Additionally, most brokerages charge a brokerage fee (sometimes referred to as an "administrative fee" or "transaction fee") which varies to help cover the costs associated with running the brokerage (Est. $250 - $500). Plus, brokerages charge fees for any services that are not included in their standard listing package. This will vary by brokerage, but examples include 360-degree video tours, furniture staging, additional open house events, additional marketing materials, etc. With all the commissions and fees, this means you will not receive 100% of the purchase price when you sell your home with a REALTOR®. Based on the most recent Housing Report by the Orlando Regional REALTOR Association (February 2019), the median home price in Orlando, Florida is $235,000. So, if you sold your home with a REALTOR® for this price with the standard 6% commission and $300 brokerage fee for the listing broker and selling broker, the numbers would work out as follows: Sale Price: $235,000 Listing Agent/Broker Commission (3%): -$7,050 Buying Agent/Broker Commission (3%): -$7,050 Listing Agent/Brokerage Fee: -$300 Buying Agent/Brokerage Fee: -$300 Funds Remaining for Loans, Closing Costs, and Seller: $220,300** ** This example does not account for any additional fees or services not included in a standard listing package and does not account for any closing costs that would also come out of the funds remaining. Commission & Fees: Sell Orlando NowCash buyers make their money by purchasing homes at a discounted price, fixing them up, and reselling them for a profit. When you sell your home to Sell Orlando Now, there are no commissions or fees that you, the Seller, have to pay. You will receive 100% of the purchase price when you sell your home to Sell Orlando Now. Sale Price: $225,000 Listing Agent/Broker Commission (NONE): $0 Buying Agent/Broker Commission (NONE): $0 Listing Agent/Brokerage Fee (NONE): $0 Buying Agent/Brokerage Fee (NONE): $0 Funds Remaining for Loans and Seller: $225,000** **There would be NO additional fees or closing costs that would also come out of the funds remaining. Recap: Sale Price and Commissions & FeesSo as you can see from the examples above, you will likely be able to sell your home for a higher sale price with a REALTOR®; however, when you sell to a cash buyer like Sell Orlando Now, you get to keep a bigger percentage (100%) of the sale price because there are no commissions or fees that have to be paid by the Seller. There are several other aspects to consider, which I will cover in later posts, but if you have any questions or would like to discuss further, please feel free to call our office at 321-710-7355, or email us at info@SellOrlandoNow.com.
If you have decided which option is right for you and you are ready to move forward with selling your home either through a REALTOR® or to a cash buyer such as Sell Orlando Now, we would be happy to help you with either option. Click the button below and complete the simple online form, or call us at 321-710-7355 to get started. |
AuthorJennifer Rivas is a local real estate investor and licensed real estate agent who enjoys helping people solve their real estate problems. Archives
June 2019
Categories |