What's the Difference Between Cash Value and Market Value?
|Market Value: This is the price you will get for your home if you sell it with a realtor. This is probably the price you have in your mind if asked what your home is worth today. What you need to keep in mind is that it cost money to sell you house and get market value. Additionally it takes a longer time to sell your house on the market.||Cash Price: This is the price an investor is willing to pay for your property in "as is" condition. Cash Price is far less than the Market Price. Why is this? It is simple, investors are taking on all the risks and work associated with rehabbing and selling your home. There has to be enough room in the price for the investor to make some profit.|
Selling for Cash vs. Listing with a Realtor:
It is very simple, if you want market value for your house you absolutely should list it with an agent. We can help you with this too. Click here to view our section on selling your home for market value. However if you understand the value in selling your house quickly, hassle free and without hidden costs, then selling your house for cash may be the best solution for you.
Don't be fooled to believe that selling your home for market value doesn't require money.
Hidden costs you should consider when you sell your house at market value:
- Home Prep: Your house needs to be in top shape when you list with a realtor. You will need money to invest in upgrades before you sell.
- Even after you get an offer, the buyer might require that you do some upgrades or repairs before closing. You will have to have the cash to do these repairs or offer a discount on the house for the buyer to pay for the repairs. Either way, you pay.
- Time is money: It can take a few months to sell a home. This means you will be paying a few months worth of taxes, utility bills, insurance bills, maintenance etc. Don't forget about these expenses just because they are paid quarterly or factored into your mortgage payment.
- Closing Costs: You will have fees to pay when you sell your house with a realtor. Some of them include attorney fees,state transfer taxes, title insurance,loan pre-payment fees. When we buy your home all typical closing costs are paid by us.
- Commission: The standard is 6% commission. If you choose to pay less then there is a greater possibility that you house will take even longer to sell. This is because a lower offered commission will get less interest from other realtors. Remember you are not paying your realtor 6%. You are paying 3% to your realtor and 3% to the other realtor that brings the buyer. If there is no incentive for the other realtor to bring the buyer then you are making your house less attractive to the market which can result in delays in finding a buyer. Remember time is money!
When you do all the math you will find that the cost of selling your home for market value can be quite high. Not to mention the time it takes to find a buyer, and complete the sale. Put this all together and you will notice that the easy and convenience of selling to us for cash starts to make more and more sense.
Benefits of Cash Value Home Sales
- Stress and hassle free sale: Can you put a price on you sanity? When you consider that selling with a realtor means that you will likely have a few open houses with possibly hundreds of strangers walking through your house, including your nosy neighbors. The convenience of selling your house directly to us has a true value.
- Don't Lift a Finger: We buy your home in as is condition. There is nothing for you to do when you sell to us. Imagine the ease of simply moving the items you want to keep and leaving whatever you want to leave behind.
- Close when you want to: We can buy a house in as little as 10 days. Even less in some cases! This means that you can set the closing date to whatever day is most convenient for you.
- Flexible terms: We can be flexible with the terms of the sale. If you have a need to sell the house now but live in it for a little while longer, we can be flexible and accommodate such a request.
Selling for Market Value:
If you have determined that selling your house for market value is the right path for you. We can help you accomplish this too. Our best advice is to work with a realtor that knows how to use technology to get your house sold as quickly as possible. In today's internet driven world it is more and more important to find a realtor that has the right technical tools needed to sell your house quickly. With this understanding we have partnered with tech savvy realtors that can help you get your home sold as quickly as possible and for the highest price possible.
Get a no obligation estimate of your homes value and connect with our realtor network here: