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If you choose to fix it up yourself, we offer a free 12 page booklet on how to fix your house up and stage it to get a top market price. Based on over 500 transactions since 2007, the tips in this booklet can save you a lot of time and money. Click on the cover at the right to read online or download and print out a free copy of this do it yourself booklet.
What are the costs of repairs and remodeling? As compliled in the Remodeling Magazine 2015 Cost vs Value Report (www.costvsvalue.com) here is a sampling of Twin City midrange costs of the most common projects:
Costs Of Repairs And Remodeling:
|Minor Kitchen Remodel||$22,201|
|Major Kitchen Remodel||$64,138|
In addition to repairs and remodeling, the other costs of selling a house are:
Other Costs Of Selling A House:
|Realtor’s Commission (6% of $150,000)||$9,000||$12,000||$15,000|
|6 Months Carry Costs (Interest, Taxes, Utilities, Insurance)||$6,000||$7,500||$9,000|
Total Other Costs
If you think the market price of your house will increase enough to recoup all the repair, remodeling and carrying costs, then it will be worth the time and money. But when the math says you can net similar proceeds if you sell the house “as is,” you should begin to consider this option.
There are several approaches to selling a house “as is”
1. For Cash – Sell your house for cash then invest the money in another house, in bank savings or CDs, in the stock or commodities market, or in any number of other sources offering a return on your money.
2. For Payments – Sell your house fast and receive a stream of monthly payments that will constitute a higher rate of return than the sources mentioned above.
In addition to netting similar proceeds, selling your house “as is” is lower risk. With an average six-month rehab process, there is no guarantee you will get your desired price or that the buyer’s financing will go through. Delays in selling the end result will eat up your profits at an average rate of $1,000 a month creating a lot of unnecessary stress and anxiety.
In this case you can get your house on the market quicky and proceed under any one our four options (click on one of the four links to jump to that topic):
Hire a realtor to list the house on MLS (Multiple Listing Service), and pay a 6-7% realtor commission.
To avoid realtor commissions
To generate a cash flow and rate of return on your money that may be higher than you could get from investing the pro- ceeds from a cash sale.
Accept a stream of monthly payments that constitutes a higher rate of return than you could get investing the pro- ceeds from a cash sale.
Homestead Road can help you make any one of these options successful. With over 1000 transactions since 2007, we can show you the ropes on any course you decide to take. Call 612-808-6767 for more information or an evaluation.
As mentioned above, we have published a free 12-page booklet on how to fix your house up and stage it to get a top market price. Based on over 500 transactions since 2007, the tips in this booklet can save you a lot of time and money. Click the cover at the right to read online or download and print a free copy of this do-it-yourself booklet.
The MLS (Multiple Listing Service) lists all the houses that have been listed with realtors. The list is searchable by inputting criteria such as # of bedrooms, # of bathrooms, total square footage, price, garage type, etc. When you are on the MLS, your house will show up when realtors and buyers search for your specific criteria. Of course, when you list your house with a realtor, you must pay a commission of 6% +/- on the sale price, but you also get the expertise required to navigate the maze of steps, legal and financial requirements, title issues, and all the other things that can go wrong.
The main reason people try this path is to avoid paying realtor commissions of 6-7%. Homestead Road is not a Realtor, so we can provide the following information objectively
1. Realtors control the majority of buyers and will not show your house to their clients unless you agree to pay their commission.
2. Realtors are the best people to determine a price that will get your house sold quickly for a good price.
3. Realtors provide expertise to navigate through the maze of steps, legal and financial requirements, title issues, and all the other things that can go wrong.
4. Without a realtor at your side, you are on your own.
For sale by owner can be a false start that wastes time and extends your monthly carrying costs (mortgage payments, taxes, insurance, utilities and maintenance) that could run $1,000 a month.
Sometimes renting your house will yield a greater return on your money than if you invest the cash proceeds in another house, in bank savings or CDs, in the stock or commodities markets, or in any number of other sources offering a return on your money. It can also be a strategy to “park” your house in a down period until housing prices rebound later on.
The drawbacks to renting your house are the risk of delinquent rent payments, or other tenant issues such as unreasonable complaints, illegal activities or abuse of the property.
A stream of monthly payments can amount to a higher rate of return than investing in bank savings or CDs, in the stock or commodities market, or in any number of other sources offering a return on your money. Under such an agreement, you can receive a sizeable cash payment up front, and a balloon payment 3-5 years down the road. Such an arrangement can yield a selling price of up to 20% more than an MLS sale.
In summary, you can order our free booklet by clicking here to fix your house up yourself and sell it for a top market price.
Or you can find out what it’s like to sell your house to Homestead Road “as is” and avoid the rehab costs and hassle. Just call 612-808-6767.
We pay more for any home any condition
We fix them up professionally with premium materials
We help families find a way to own the home
“I contacted Homestead Road and man! They came, they were professional, they made me feel at ease and they were fast. The CEO came and helped me relax and got it done in 2 business days. I can’t stress enough how much I recommend this company. Their people were very humane and respectful.
~ A Minneapolis Homeowner
“Working with Homestead Road has been a great experience, not only in selling my Mom’s home, but closing in such a timely, professional manner. I liked their promise to take care of the home, to let us come back to see it fully restored and to meet the new family.
~ An Elderly Mom’s Daughter
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