I Thought This Guy was Trying to Buy My House for Cash?”
I know what you’re thinking. “Why is this guy telling me what he can’t do for me? I thought he’d be telling me how he’s the answer to all my problems.” Well the reason I’m telling you why I can’t pay cash for your Colorado Springs home at 80 cents on the dollar is to both save you time and educate you on some of the expenses that go into selling a house. This benefits you in that you know what it will cost you to sell your home on your own, and it benefits me in that when you call me you already know some of what I have to tell you.
I Love My Job
I love talking with people selling their homes. I’d really be in the wrong business if I didn’t. That said, I often have the unfortunate job of being the bearer of bad news. Because I spend a lot of effort putting myself out there to people selling their home, I’m often the first person they call when looking for a cash offer. I can’t tell you how many times I’ve spoken with a seller who says something like, “The house down the street is only a little bigger than mine and sold for $210,000. Mine needs about $10,000 of work and I’d like you to pay me $180,000 cash.” I fully understand why someone would think that I would make $20,000 on this deal, and that it would be a reasonable price to expect me to pay, which is why I’m writing this article.
To help explain why the above mentioned $180,000 is not something I can pay for this home, I’m going to list some of the expenses I would incur if I were to make this purchase. Using the seller’s price for the house down the street of $210,000, let’s assume his smaller house would sell for $200,000 in perfect condition. Let’s also assume his $10,000 in repairs is accurate. Using these numbers one could easily conclude that I would make $10,000 profit by paying the $180,000 purchase price, plus the $10,000 in repairs, and selling for $200,000. Boy do I wish that was the way it worked. If it did I’d really be a millionaire.
Unfortunately there are many more expenses that are incurred when buying, fixing, and selling a house. Since your time is valuable I’ll keep this short, but here’s a list of just the known costs when buying this house.
6% Realtor Commission X $200,000 = $12,000
3% Closing Costs X $200,000 = $6,000
Sellers estimated repair costs = $10,000
5% Average buyer price concessions = $10,000
Maintenance, Taxes, Insurance, and Utilities at $500 a month X 6 months = $3,000
Total known costs = $39,000
I want to Stay in Business to Help You
As you can see, if I were to pay $180,000 for this property I would be guaranteed to lose $19,000 ($200,000 sale price minus $39,000 in expenses). Also I can’t emphasize enough that these are the known costs. Almost every house I’ve ever bought had several unexpected expenses or took longer to sell than expected. Please don’t be discouraged by the numbers above. As I wrote in the beginning, I’m only telling you this so you know what it will cost you to sell your house on your own. Also as I wrote, it benefits me that you know this so you understand where my number is coming from when I offer you 70% or less on the dollar for your house. Not only are there many expenses involved, but I’m also taking on a huge risk every time I buy a house.
After everything I wrote above, it makes you wonder why anyone would want to buy Colorado Springs houses for cash. Honestly the main reason I do it is because I love helping people and I love real estate. Anyone in this business that doesn’t love both won’t be in it for long. I truly hope this helped give you some insight into selling your Colorado Springs, Fountain, Falcon, Woodland Park, or Pueblo house. If you have any questions about this or would like to receive a free cash offer on your property, please fill out the property information form at https://www.sellmyhousetosmith.com/sell/ or give me a call at 717-881-1756.
Here’s a video explaining the expenses of selling a Colorado Springs house:
Comments are closed.