Running The Real Numbers When Reviewing Offers For Your Indianapolis House
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When reviewing offers for your Indianapolis property, it important that you know how to interpret the numbers. Not every offer will in your best interest so let’s into how to know which one will work best for you.
There are many things you will need to consider in when reviewing offers for your Indianapolis house. While the highest offer may appear to be the best, this isn’t always the case. Below, we discuss some of the overal costs you may face when selling your home in the Indianapolis area.
With a traditional sale to any buyer, a seller can expect to pay about two (2) to five (5)% of the final sale price in title/closing fees. With most offers, the other investors will expect YOU to pay for this; with us you pay nothing.
If you are going to list your home with a Realtor in Indianapolis, you’ll want to consider all of the repairs that might come up in an inspection or when fixing it up to list the home. Repairs sometimes cheap or expensive, and you will likely have to face them before putting your Indianapolis property on the market. In addition, the buyer in question will most likely attempt to negotiate even more repairs once the inspection has been executed. This process of spending cash to fix more issues can be extremely frustrating, So with our process of a direct sale, you’ll be able to keep that cash.
There are all kinds of points other investors or private buyers might put in their purchase agreement. Having a contingency protect the buyer should something go wrong. Some contigencies include things like not being able to sell their current house in time or if the inspection has too many issues they don’t want to deal with or you can’t/wont fix. Lastly, if the property doesn’t appraise at the price you want to sell at, their finance company can back out of the deal.
The quickness of the buyer to close will influence how quickly you can get your money as well as all the other bills you will have to pay while waiting. The longer you have to wait to sell, the more it will end up costing you. Holding costs such as property taxes, home insurance and utilities can add up quickly over time that will decrease the money you will recieve at closing on top of if you have mortgage payments and the routine maintenance you have to do on your home. There always is the possibility of your home sitting on the market for a while or if the buyer backs out, you could find yourself stuck paying these costs for more months over time.
When reviewing offers to purchase your home, you’ll want to calculate who will be more risky and can follow through. If your investor buyer is using financing sometimes lenders will back out of an offer because they will say how much a home is worth. Also investor buyers will actually not close on your property themselves but give their offer to someone at a higher price to collect the difference and now you are relying on someone you have never met to buy your home which can cause alot of problems. Ask for proof of funds or a pre-approval letter from the investor buyer if they are serious on buying your home as well as a earnest money deposit that will be put at the title company so they have “skin” in the game, meaning they actually have money to close.
If you choose to work with a local Indianapolis real estate agent, you’ll have to commit to a listing agreement stating you will pay their commission as well as the other agent that will bring the buyer. However, if you are able to find a reputable buyer such as JAG Property Group before hiring a Indianapolis agent, you’ll be able to instantly save on commission costs. This can be upwards of 6-7% of the final sale price that you’ll be able to keep in your pocket. This could amount to thousands of dollars you will e able to use for your next property should you so desire.
Appliances and Fixtures
When looking at a home to sell, the fixtures, furniture, and appliances will all come into play. Will you be taking everything with you or does your would-be buyer want to keep any of these items? You’ll want to factor in how much it will cost you to replace these items if you are leaving any items with the new buyers. The replacement of fixtures, appliances, and other items in your new home can cost alot of cash. Make sure you are prepared for these replacement costs before accepting an offer for your Indianapolis property.