We buy houses in Houston TX. We also pay cash for houses in Houston Texas and can close quickly, making the selling process incredibly easy for you. We are homebuyers in Houston TX and we discuss how we provide offers in Huston and everything you must know about the process of selling your property in this article. There are different factors you should consider if you want to list your property or sell it AS-IS.
Retail Value Of Your TX House
Essentially what updated houses in your neighborhood are selling for. What that dollar per sqft looks into. There are a lot of factors such as busy streets, history of the property. All these factors affect the resell value after fixed.
Negotiation in Houston
Ideally, we would sell the house at the price we ask, something it happens but sometimes no. So you want to budget around 5% of the retail value for negotiation.
Repairs Required in Houston Texas
Unless it is a brand new house there will always be some work to do. And, it’s important that you go through the process with someone you can trust, someone who can get the work done and it’s really done to top quality. So you can see what the real cost is.
Holding Costs in Texas
Typically, there’s a 1% cost to hold on a property between utilities, taxes, insurance, if it’s vacant it’s a different type of insurance.
TX Property Inspection
Buyers are going to have an inspection period, the inspectors are going to find issues, even though you already went through the most significant repairs. So you want to budget an extra 1.5% of the retail value for inspections.
Houston Agent Fees
After you went through the rehab process, you need an agent who helps the buyers present their offers and manage the communication. In Texas, that’s 6% of the retail value, so you want to budget that fee as well.
Closing Costs in Houston TX
When you are a seller in a retail transaction you are expected to pay the title insurance policy which is about 1 -1.15%, that’s determined by the state of Texas, plus your closing costs. So you want to budget around 4.5% for closing costs.
Houston Texas Home Warranty
The retail buyer will want to make sure that they get a safe house to live in, a home that does not need repairs. They are going to ask for a home warranty and that usually is around $400.
Sell My House In Houston TX
When we make a cash offer, we include all these expenses so you don’t have to worry about anything. So, when you sell your house in Houston TX and if you are not willing to spend time and money to go through the whole process to make sure everything is done right we are your perfect solution. We are Houston TX home buyers and we take care of everything for you, you only need to wait for the money in your pocket.
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Hidden Costs home sellers face
Johell Aponte: Hi, my name is Johell Aponte with Move On House Buyers. And a lot of times we get asked by sellers, how much of a discount are you going to take? Are you going to provide me with a low-ball offer? These are very understandable concerns when you’re looking to sell your house as is with repairs. I understand you don’t want to have been taken advantage of. And so here I am to discuss how we provide you with a fair cash offer. And I’m going to walk you through kind of the difference between what you’re giving up, which is a little bit of money, versus the time and convenience. Right? I mean we give you a service of time and convenience, easy cash sale versus dealing with the headaches that involves selling a house on the retail market. So let’s dive right in.
So the first thing I want to talk about is your sellers net sheet. Now this is not a very popular term with the retail side of the industry, but it needs to be talked about. Whether you go the path of making sure that it’s fixed, retail conditional in showroom, HGTV condition, right? Or will you sell it as is, and how does that cost and how does that line up in your bottom line? Now listen, there is no doubt we are a business. We’re going to make a profit or look to make a profit, but we also don’t want to low ball you and just take advantage of the situation, we just provide you a service, right?
So let’s assume in this case that the house is worth $100,000. So first you want to understand what that retail value is. It’s essentially what updated properties in your neighbourhood are selling for and what that dollar per square foot looks into. And there’s a lot of factors such as you don’t want busy streets, what is it backing to? History of the property, if it has flooded. These are all factors that affect the resellability of the property, the resell value of it after fix. So you want to make sure you understand what that retail value is. We have no problem discussing it with you through our process.
But let’s assume that it’s $100,000, if you are going to commit in spending more money into selling your property, you want to understand or at least budget for some negotiation. Now, ideally we would all sell the property at the price that we ask and sometimes that happens but sometimes it doesn’t. So you want to budget around, at least that’s what we do, we budget about five percent for negotiation, right?
Repairs required. Let’s assume that this property needs some work and that you had a contractor, a reputable contractor, not the handyman with a pickup truck [inaudible 00:02:43] but a reputable contractor that you know, like and trust, that can actually get the job done, give you a quote in writing or maybe you went with three of them and it tells you “Hey, it needs $30,000 worth of work between labor and materials.” And it’s important that you go through that process so you understand what the true cost is. I know folks that might think that they can get it done really cheaply and you know, kudos to you, but at the end of the day there’s going to be a buyer that’s going to be really judgmental about this purchase, it’s a big purchase, right? So you want to make sure that it’s done to top quality.
The next piece is around holding costs. So this will vary in a case by case basis. In this case, we assume that you’re going to hold onto that property for six months. So what that amounts to do is probably, you know, typically there’s a one percent cost to hold onto a property between utilities, taxes, insurance, if it’s vacant, it’s a different type of insurance or a more expensive insurance, flood insurance if you carry that. And then if you have a principal or mortgage or not. So essentially six months is what you want to budget.
Inspection contingency, so if you do get that … Retail offer and typically the buyer’s going to have an inspection period. The inspectors going to find issues. And so with that said, you want to budget at least a percent and a half of the value for inspection.
Agent fees. So there’s a listing agent who helps you, the seller, and then there’s the buyer’s agent who helps the buyer present their offer and manage that communication. So that’s a six percent here in Texas. So you want to budget for that. I’m sure you can try and go flat fee or a lower rate, but that’s going to equal out on the service and the marketing costs that they can put behind selling the property for you.
Closing cost. So difference is that we pay your normal closing costs and ours. But when you’re a seller, in a retail transaction, you’re expected to pay the title insurance policy, which is about a percent, maybe a percent and a quarter. That’s determined by the state of Texas. Plus you’ve got to pay your closing costs. And most often the people that are going to pay retail value, they’re going to be FHA buyers and they can ask up to I think three, three and a half percent of closing costs for them. So that’s why you want to budget about four and a half percent for closing costs to be taken out.
The next piece is home warranty, so our retail buyers are going to make sure that “Hey, I got a good house that I can live in, that it doesn’t need work and I’m going to ask for a home warranty.” And that usually runs about 400 bucks plus or minus. So you end up with a net of maybe 46,600. That’s if your contractor didn’t run away with your money, everything went well, the timeline of the sale did happen as expected, and you didn’t run into additional costs, right? So when we make our offer, just so you can compare, we figure out, okay, what is the retail value of the property? So we discussed that to be 100,000, cost of rehab, 30,000. Now listen, we might be able to do it sometimes a little bit cheaper, but our guys are quality guys. They get in and out and we make a lot of our money just the efficiency of time versus trying to pay them for low quality of work.
And that’s going to show on the end result when you resell, right? The cost of purchase and sale. So this is a business, we do have overhead and we do have transactional costs. So when we make you an offer, we pay all normal closing costs except taxes Or liens. So that’s accounted for about 15 percent of the total process from buying, getting a close, to then selling and going through those concessions and paying those agents when we go on the sell side as well. So that’s why that’s a little bit higher than expected.
And then our profit, so we budget anywhere between 12 to 18 percent of profit for our day to day business. That’s about what we do on a normal basis. And then the cash offer, let’s say for this example it ends up being $40,000, with us paying all closing costs except taxes or liens. That leaves you at a comparison of 40,000 versus 46,600. Difference of 6,600. So my question to you is for 6 or 6.6 percent are you willing to go through the rehab, the listing, investing that money to the property until you get it out? If you’re thinking about selling cash as is, I’d love to have the opportunity to get you a fair cash offer. As you can see, we’re very transparent in our pricing. Give us a call at 833-U-MOVEON, that’s 883-U-MOVEON or check us out on www.moveonhousebuyers.com. I appreciate you visiting and have a great day. Bye bye.