Selling Through “Traditional” Channels Can Be Very Expensive
Posted on August 5, 2013 | Back to blogAdvice
We make it easy
Here at We Buy Ugly Houses™ we pride ourselves on our ability to make selling your house the easiest transaction you’ve ever experienced. Whether your house is too “ugly” (i.e. needs A LOT of repairs) to sell through normal channels, or you just want it out of your hair as fast as possible – we make selling your house easy-peasy. With that in mind, we wanted to take a look at the expenses associated with selling a home through traditional channels. The numbers add up fast!
Real estate agent commissions
Traditionally, the real estate agent’s commissions come right out of the seller’s pockets to the tune of 5-6% on a standard deal. The buyer’s agent and seller’s agent split this commission. This is how real estate agents get paid for all of the effort they put into marketing and eventually selling your home.
At We Buy Ugly Houses™, we are our own agents. We don’t take a commission, which means you, the seller, get to keep an extra 5-6% of the sale price when you sell your home to us.
“Other” closing costs
Some closing costs are based on local tradition or buyer negotiation. We make things simple by giving you a cash off, on the spot, and closing within 30 days. There are no “other” closing costs associated with selling your home to a We Buy Ugly Houses™ franchisee.
Traditional closing costs
In down markets, buyers often make sellers pay all of the traditional closing costs, which can add up to 2-4% of the price you sell your home for.
Common “other” fees include: fees for the escrow company, the mortgage/home appraisal, recording and xfer of the property, homeowners’ and title insurance, etc. In down markets, buyers like to make sellers pay closing costs, which can add up to 2-4% of the selling price. That’s a huge OUCH for your average person trying to unload their house!
Do you see a theme here, yet? Most sellers get taken to the cleaners when they sell their houses. Transfer tax is common enough to worry about, even though it only amounts to a small percentage of the sales price. It’s your local government’s way of saying “Thanks for selling your house!”
It’s customary in many areas to supply the person buying your home with a warranty to protect them against appliance, heating and AC breakage. It’s good for a whole year and usually costs sellers somewhere in the neighborhood of $500. We Buy Ugly Houses™ isn’t worried about a warranty when you sell your house to us.
Do your research
Depending on the condition of your house, a buyer may not be able to secure a mortgage to buy it. When banks won’t loan your buyers money to buy your house, you have to look at alternative means of selling it when you want to unload it. That’s when you call us, the We Buy Ugly Houses™ people, where no house is ever too ugly for us to make an offer on it.