Augusta Georgia, Questions about selling house for cash.

Augusta Georgia, Questions about selling house for cash.

Augusta, GA · Member since 2017 · 2 posts · 0 votes

In short, here is the scenario.  3br house on the county website its valued a little over 60k. We had a realtor who initially had it on the market for 50 then 45k and 2 years very little activity... The property has been vacant over 2 years and i'm the only beneficiary in town.  I spent over $1,000 this summer in cleaning up the backyard and paying a groundskeeper.  I don't have a penny more to put in and little energy to maintain things any longer.  

We had a cash buyer offer 32k, the main beneficiary declined because the realtor was going for at least 49k at that time.  2 years later.... no movement.  Every time there is a storm i go over there and check things.  I have removed large branches, given the neighbors gift card for helping and looking out.  i don't have anything left to give and lack the energy to continue doing things i once did at the property since its vacancy.   3 realtors have checked the property and said if we put them on the property their confident they could get 38 to 40k in 3 to 6 months.  With the roof deteriorating and everyone could use some funds i'm in favor of selling for cash.  I know nothing about companies buying houses.  So my question is...What would you do? 38k dealing with a realtor and the long process or say 32k from an investment group?

We no little about cash buyers and the perception isn't the best.  For all i've put in i'd prefer the quickest route at this point. But, I totally respect the main beneficiary because she lived in the home for decades and it was her mother's house.  So I can respect the caution and wanting to get the most possible.  But, at this point.....with me being the only person in town maintaining things, with the market this low and 3 different realtors talking around 40k...is it a lost or non smart move to sell cash for around 32k?  We have no knowledge of fees and closing.  Only thing we know is the realtor said she'd only charge 6% and take care of all the paper work and closing. She's from a respected big name company in the area.  If a cash buyer says 32k does that mean the check is 32k or will there be a bunch of fees and closing cost? Also we'd still need a lawyer correct? How much should we expect to pay for a lawyer? I think the cash buyer initially said we could have money within a week or 2.  Do things happen that quick?  What would you do in this situation?  Yes, 1 realtor said if we put 10k in the property she's confident she could market it around 60k but we obviously don't have 10k to invest.   Any perspectives are appreciated and thanks!

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  • Rental Property Investor · Evans, GA · Member since 2014 · 74 posts · 65 votes
    9y

    If you sign with a realtor they will typically charge a commission.  6% is about what most would charge, but commission is always negotiable.  In GA the buyer typically pays all the closing fees including attorney fees, title search, title insurance, etc. unless otherwise negotiated for the seller to pay.  If the seller uses a realtor they typically pay all the commissions.  So a cash offer of $32k will typically net $32k minus prorated taxes and a very small county recording fee if there are no real estate commissions.  As far as paperwork, the closing attorney can handle it and it's pretty painless on a cash deal.  

    In this market it sounds like $32k for this property is a fair cash offer if it needs over $10k in repairs and its after repair value is $60k.  If you deal with a cash buyer with no realtor you will be able to avoid the commissions, but they usually require a discount off retail value.  If you would like to discuss both scenarios further I just sent you a PM.

  • Rental Property Investor · Evans, GA · Member since 2014 · 74 posts · 65 votes
    9y

    I forgot to comment on the timeline..  On a cash deal a bonafide cash buyer should be able to close within a week.  The only delay would be getting the title search completed by the closing attorney.  

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