The true cost to sell. 15% or more
Hi BP,
I have been working on figuring out the true cost in percentages of what the seller loses when their home is sold the conventional way. Here is what I've come up with, please correct me if I'm wrong or off. Real world from a recent sale In my area.
list: 215k Sold: 200k dom: 130
(Assumption) PITI: 1300$ utilities: 250$ = 1550$ month x 3 months = 4650$
200k - 4650$ = 195350k. - 11% below list
commission + close = 8%
195350 * 8%= 15628$
195350 - 15628 = 179670$ net to the seller
for a grand total of 17% below asking price.
I plan to show those with expired listings or before they even put it on the market that i could save them thousands through seller financing such as lease options.
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#1 Foreclosures Contributor
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- West Palm Beach, FL
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Well, just my opinion
"$ off of list" is an irrelevant number, and not a "cost". It just never existed, the sales price is the value. If it's an owner occupied property, they have to pay to live somewhere, so the PITI and normal monthly costs are likely the same as what they'd pay else where, so to me that's a wash. Guess it just depends on what you're trying to sell them on.