There are many cases where the numbers make sense to sell your house for cash. We hear statements all the time like, “I need to sell my house ASAP” and “I want to sell my house as-is.”
But then, those statements are followed by the questions, “Should I sell my home for cash? Will I be losing out on money if I do?”
The answer to both questions is, it depends. Despite that seeming like a vague answer, there are some calculations you can run to determine if selling your house for cash is a good deal for you.
If I Sell My Home for Cash, Will I Lose Out on Money?
To answer whether or not you should sell your house for cash, we first need to take a look at the second question. “Will I lose out on money if I do?”
Many people are surprised to learn that they answer could be a resounding “No!” Selling your house for cash can be as good of a deal as selling on the traditional market. This is especially true if you put value on your time.
Costly Factors You Need to Calculate
Here’s what you need to factor in when calculating if selling your house for cash is a good deal.
Companies that buy houses for cash usually buy them as-is. That means you don’t have any repair costs to make your house buyer-ready.
While you can sell your house as-is on the traditional market, it typically takes longer to sell and will sell at less than market-value. You’ll need to factor in these losses when comparing your potential profits to selling for cash.
Days On Market
A huge factor that people often overlook is what’s called Days on Market. Days on Market (DOM) is the number of days from the date you list your house for sale to the date the sell signs a contract for the sale of the property.
In Florida, the average DOM is 99 days. That’s over 3 months of additional mortgage payments! If your mortgage is $1,500, that’s $4,500 you wouldn’t have to spend if you sold your house for cash.
Companies that buy houses for cash can close in as little as 5 days, and usually less than 10 days.
Real Estate Agent Commissions
You probably know that real estate agents take a significant chunk of the sales price. But too many people don’t factor that number in when comparing it to a “sell my home for cash” offer.
If you sell your house for $200,000 on the traditional market, $12,000 of that is going to the real estate agents.
So while you’re “sell my home for cash” offer will be less than traditional market-value, it might not be much less than market value minus commissions!
How to Run the Numbers
If you want to run the numbers, I encourage you to jump over to “How to Calculate if Your ‘Sell House for Cash’ Offer is Fair.” This article will take you through the calculations so you can better compare cash offers to what you can get on the traditional market.
If you’re selling a house in Southwest Florida and would like to consider all of your options, Tropic Coast Homes can give you a Cash Offer right away!