Offer:_____________________________

Sign by:_______________________________________
            

There are costs associated with the sale of a home using a real estate agent that are not part of our costs.  The example above represents that.

Here are our advantages:

1. No Realtor's commission.  You save 6% from the purchase price.
2. No need to reduce the price of your home once more.  Statistics show that the average home sold with a realtor sells for 3% less than the asking price.
3. Lower closing costs.  Our Program saves many superfluous closing costs that saves you at least 1% over a Realtor's sale.
4. No need to make concessions, pay buyer's closing costs or other buyer incentives that can add another 3% deduction to your bottom line already reduced price.
5. Fast Fast Fast closing.  We can close within 21 days.  Realtor's minimum listing contract is 3 months. 
6. For a measly 5% deduction on your purchase price you can have your home sold fast.  We are the right choice for you hands down!
7. If you are thinking of listing your home with a Realtor, be sure to exclude our company name before you list the home so that when we find a buyer for your home, you can take advantage of our fast service and quick closing and NET MORE.  Remember that our offer is for up to 95% of the Home's Full Market Value.  Use this calculator to figure how much more you can net with us at the same price as you would list with a Realtor.

Actual Sales Price: According to National Association of Realtors studies the typical seller accepts a sales price that is between 3-9% lower than their asking price. The actual value from their study depends on how long the property has been on the market. It also relates to the house being priced properly in the first place. Real estate agents will often list a house at five to fifteen percent higher than FMV to entice the homeowner to give them the listing, and to leave some room for negotiating and a price reduction when it doesn't sell. That's what people mean when they say the top ten percent is air. During a normal market in most areas of the country, houses have actually sold at between 91% and 96% of true FMV.  We want to buy at 95% of its Fair market Value, Not steal it!


Fix-Up Costs: To sell a home quickly, and at full true FMV, it needs to look like a model house, because that's your competition. Why would anyone pay the same price for an older home that looks lived-in and tired, when they can get a new home for the same amount of money? The NAR says it takes 3.6% of FMV in light repair and touch-up costs to put the average house in that ready-to-show condition. That doesn't even count the owner's time that's involved. Not doing it results in a much lower perceived value to buyers, and their offers are reduced by an amount of cash greater than what it takes to get the property in shape to show.  With us there are none!

Realtor's Commission: 6%. 'But I'm not using a realtor!' OK then, according to another NAR study you have a 1 in 10 chance at completing the sale.  If you want to keep taking those odds I'll be happy to let you be the house at the next Casino Night. (smile) To be practical we'd better factor in 6%, maybe even 7%, for the realtor. Probably, six percent.
Time on market: When you add the time between the acceptance of an offer and the actual date of closing to the time the property was on the market prior to sale, the average length of time from listing to settlement is a few days over seven months. Figure 1% per month in carrying or floor costs, or 7% of FMV.  You pay no commission to us EVER!

Seller's closing costs: The closing costs in our area are higher than the national average. From another ILAR study it was found the average seller paid fractionally more that 4% of FMV in costs, transfer tax, and concessions in addition to prorations. If title insurance is more expensive for some reason, this will go even higher.  We try to keep them at a low 3%.

Loan payoff penalties: You will not be penalized for pre-payment in most cases, but other charges from your lender are going to be there. The exact amount depends on the loan, but averages one-half of 1% of FMV.  With us there are no late penalties as we will cover the cost.

Down Payment Assistance or Cash Back at Close: This can be 3-10% of the sales price if one agrees to participate in such a program to make the sale.

Marketing Costs charged to Seller: Money cost to advertise, print color brochures, provide open house freebies, yard signs, etc. Add another 1%.

If we take the minimum figures from each category except the down payment assistance, which is optional, and we assume that a property will sell at 95 percent of FMV, the percentage of loss adds up to 27.1%. This isn't Monopoly money; the 72.9% that's left is what the all-cash seller walks away with in seven months after accounting for all his costs. This is why there's a lot to be said for considering a legitimate, fairly-priced offer early in the marketing process, and getting on with your life.
 

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