The Worst Part About Selling to a Cash House Buyer

Are you c

onsidering selling a house you own that needs some remodeling? Maybe you don't have the time, money, or resources to fix it yourself & just want to get out. In this article, I am going to go over what the WORST PART about selling your house to a local we buy houses company.

The absolute worst part about selling your house for cash to a house buyer is the fact that you WON'T get top dollar. When you look at it from a business decision standpoint, the house buyer has to make a profit in order to buy a deal. They can't pay you $140,000 and only sell it for $145,000. When they factor in commissions, holding costs, money costs, misc repairs, and a profit margin - the numbers just wouldn't make sense!

What is a reasonable amount to expect from a cash home buyer?

In reality, most home buyers will be around 50-60% of the repaired value of your house. Now, this seems like it would be an extremely low ball offer. However, let's look at it from another point of view. Say you own a house that is worth $105,000 fixed up. In it's current condition you would not be able to list it on the market or sell it outright because of all the junk in the house & remodeling needed.

In order to list it for sale, you will need to at least spend $35,000-45,000 if you were hiring people to do the work. For us to do the same work it'll cost about $30,000. However, we also need to make above & beyond that difference for our risk in the transaction. We aim to make $20,000-$25,000 per flip that we do. Which results in about $12,000 in take-home pay.