Any homeowner will tell you that owning a home costs money. We have all hear the benefits of homeownership and how they outweigh the costs of maintenance. But what about when it’s time to sell? Is it better to list for a high price and wait? Or is it more profitable to sell quickly? Simply put, the faster you sell your home, the more profit you will make. Read on to find out why.
Save on Carrying Costs
As a professional home buyer, we buy and sell lots of houses per year. So we know first hand what it costs to own a house, especially a vacant one, while it’s being renovated and listed for sale. The first cost is utility bills. The most common utilities in North Carolina are electricity, water/sewer, and natural gas. All these bills keep coming in while the home is for sale. If you are occupying the home you are selling it shouldn’t make a difference. Suppose you have already moved due to personal or financial circumstances beyond your control or a sudden change in employment. In that case, you’ll have to manage the expenses on two households. Additionally, there will be time involved in traveling between the two homes to watch over the existing property and travel costs.
Taxes and insurance is another cost many forget about. You still are liable for the property taxes that accrue during ownership. It’s true that this cost is prorated at closing, but it is prorated on a daily basis (per diem). This means you are liable to pay taxes on the property for every day of ownership.
The single biggest cost for many homeowners is their mortgage. While it’s true that a portion of each payment will reduce the total amount owed to the bank, you do not receive any credit for your interest payments. If you have only owned your home for a few years, most of the mortgage payment is applied to interest and not the principle!
Also, some owners pay for something called PMI, or private mortgage insurance. This is an insurance policy that will compensate lenders in the event of a default. Its commonly used for houses where a small, or no down payment, was used to finance the purchase. The important point is that you are still required to pay for this insurance while your home sits on the market.
Holding your house on the market month after month while a real estate agent finds you the perfect buyer could wipe out any profit you have built over time in equity. By selling to a direct buyer like Wake County Home Buyers, your mortgage payments could end in a brief time. Because direct buyers pay in cash, they can complete a fast sale of your Raleigh house while saving you money. In some cases, homes sold directly can close in as little as seven days.
If your home is in a subdivision with a homeowners association you will have to continue to pay your HOA fees. In addition to the other fees listed above HOA fees could be gobbling away at any profit you may see if your listing lingers on the market. Working with a direct buyer like Wake County Home Buyers means that you could end making these payments in a matter of days, another way a fast sale of your Raleigh house will save you money.
Maintenance and Repairs
When your home is for sale you will still be responsible for the usual maintenance like lawn care, general maintenance, and heavy cleaning from showings. These costs add up over time. Another cost to consider is the due diligence repair requests that follow the home inspection. No property, not even new construction, gets a perfect report. You will have to plan to make repairs during this period.
If you decide to sell to Wake County Home Buyers you will not be asked to make any repairs, or do any cleaning. Many of our sellers pack only the things they want to keep and leave the rest. Some just pick up and go!
According to research data, homes that sit on the market longer than average are shunned by buyers and agents alike. Some refer to this as a stale listing. There is a close relationship between a listing that has gone stale and price reductions. Many agents will encourage price reductions to entice more buyers through the door. While it can be effective for generating more traffic it has a tendency to compromise the seller’s bargaining position. This then leads to more concessions during the negotiation and due diligence period.
A Better Way to Sell Your Raleigh Home
For the fastest way to achieve the sale of your Raleigh house, work with Wake County Home Buyers! If you are ready to sell, working with Wake County Home Buyers will save you money. Wake County Home Buyers offers incredibly fair prices, taking time to explain our process. The cash offer Wake County Home Buyers makes you is the actual amount you get at closing. Just send us a message or call Wake County Home Buyers right now for your offer at (919) 473-6885!