How Much Cash For Houses In Raleigh Can You Get?
If you’re thinking about selling your house, here’s how much money you can get
Sellers are asking about cash-for-houses in Raleigh. They want to know how much they can get if they sell their house. If you’re thinking of selling and wondering how much you can get, this blog post will help to answer that question.
Apples to Apples Comparison
Since this blog post will be read by people all over Wake County (and surrounding areas), with many different types of houses, price points, and locations it’s not possible to give a specific price. We can empower sellers by educating them on the process!
Before we do that we need to define and classify different types of sales for comparison purposes.
On The Market (MLS) Sales
When a house is sold “on the market” this refers to the traditional way of hiring an agent and listing the house for sale in the Triangle Multiple Listing Service (TMLS).
There are some important details of “on the market” sales that need to be discussed…
First, when a house is listed and sold on the TMLS all of the property facts are collected and disclosed in a standardized way. This gives greater transparency into the details. However, you need TMLS access to read all the details. The TMLS system has access to Raleigh, Durham, Chapel Hill and surrounding areas.
Second, when a house is sold on the MLS the house is marketed and shown to many buyers and their agents. In the current market, I have seen over 50 showings come in on vacant properties in under two weeks. When a house sold “on the market”, that means it’s usually listed by a real estate agent and sold after several potential buyers have seen the property and at least one has made an offer. Houses sold on the market will often be sold for approximately the same amount that other similar houses in the area have sold for. This is called “market price”.
Off The Market (Private Sale): When a house is sold “off the market”, that usually means the homeowner has decided to sell their home directly to a buyer instead of list their home. While the final sales price is disclosed via public record, the details of the sale are not. This means that details around the payment of closing costs, concessions, repairs, etc are unknown.
Houses sold off the market will often be sold for less than their market price, this is called “below market price.”
You might be reading this and asking, “why would anyone accept below market price for their house in Raleigh?”
That’s a good question but there’s more to the story:
- Out Of Pocket Costs: When a house is listed and sold on the MLS there are agents involved which means there are commissions that are paid out adding to the cost. There is also an appraisal process, formalized due diligence period with a home inspection process, and a repair request. The repair request usually comes in the form of a “Due Diligence Request” or (DDR). This leads to more out-of-pocket costs for the seller. The MLS will disclose the dollar amount of financial concessions that were made during the sale, but not the cost of repairs that were made after due-diligence-request is submitted.
- No Concessions: Private sales to local companies that buy houses for cash should be as-is sales (iBuyers are not included in this category). Meaning the seller makes no repairs. Also, the seller is not responsible for any agent commissions.
- No Contingencies: When you sell on the market you are usually selling to a home owner. Most home owners will need to obtain a bank loan to purchase the property. There are a lot of opportunities for the sale to fall through during this process. We know because we buy a lot of properties off market and sell them on market. Sales fall through at the last minute–it happens. However, when a sale falls through you are often in a compromised bargaining position.
- Private Sale: A private sale means just that–privacy. You don’t have tons of people parading through your home, only to critique it. This is especially relevant during Covid-19. You also can keep the condition of your home private, and out of the public (MLS). Many of our clients have chosen to work with us because they did not want to open up their homes to the public.
How much can you get for your home? Selling on the market may mean you sell your house for more money but it takes longer and costs more; selling off the market may mean you sell your house for below market price but it’s faster and there are no expenses or fees.
So, how much will sellers get in cash for houses in Raleigh? It depends on how you sell – on the market or off the market… and that is determined by how quickly you want to sell and how much time and money you’re willing to invest to sell.