Selling a home usually goes this way. You get a realtor to help you out for six percent of the total selling price. But in recent years, more and more homeowners are leaning towards selling to a direct buyer due to its significant cost savings and financial benefits. A report finds homeowners usually spend almost $55,000 to sell a home. In this blog post, we’ll break down how much you can really save by choosing this route.

Eliminating Realtor Commissions

One of the most substantial savings when selling to a direct buyer is the elimination of realtor commissions. Typically, realtor commissions are around 6% of the home’s sale price. This means that if you have a home that sells for $250,000, you need to shave off $15,000 in commissions alone. But by selling directly to Cincy House Buyer, you can avoid this hefty commission fee, pocketing more money from the sale. 

Avoiding Repair Costs

The cost of typical home preparations for a sale can add up quickly. The national average for home repairs and improvements before a sale is around $5,000 to $10,000. Direct buyers purchase homes “as-is,” making it possible for homeowners to skip repairs, renovations, or home staging. 

For example, John, a Cincinnati homeowner, faced an estimated $8,000 in repairs to bring his house up to market standards. By selling directly to Cincy House Buyer, he saved this amount entirely, selling his home without lifting a hammer.

No Closing Costs

Another significant saving from selling to direct buyers is that they usually cover all closing costs. These costs typically range from 2% to 5% of the home’s sale price. For a $250,000 home, this could mean a reduction of between $5,000 and $12,500 in your net proceeds.

But when you sell to a direct buyer, like Lisa did, you can save thousands of dollars. She was thrilled to learn that Cincy House Buyer would handle all closing costs, saving her an additional $7,500 in fees.

Faster Sales, Lower Holding Costs

Selling directly often means a much faster closing process. Cincy House Buyer, for instance, can close in as little as seven days. The quicker sale minimizes holding costs, such as mortgage payments, property taxes, insurance, and utilities. For many homeowners, these costs can range from $1,500 to $3,000 per month.

In Sarah’s case, her home sat on the market for three months before she decided to go the direct buyer route. By selling to the twins and closing in a week, she saved approximately $6,000 in holding costs.

Avoiding Price Reductions and Negotiations

In traditional selling methods, it’s common to face price reductions if your home doesn’t sell quickly. On top of that, you’ll find buyers negotiating for lower prices or requesting credits for repairs, further eating your profits. Such is the case with Mike from Evanston. He initially listed his home for $260,000 but ended up selling it for $240,000 after months on the market and several negotiations. Had he sold directly to the twins, he would have avoided these reductions and stress. Direct buyers typically offer a fair price upfront, avoiding these issues.

Comprehensive Savings Breakdown

Let’s sum up the potential savings of selling a $250,000 home directly to a buyer like Cincinnati House Buyer:

  • Realtor Commissions: $15,000
  • Repair Costs: $8,000
  • Closing Costs: $7,500
  • Holding Costs (for 3 months): $6,000
  • Potential Negotiations and Price Reductions: $20,000 (assuming a reduction from $260,000 to $240,000)

Total Potential Savings: $56,500

Conclusion

Selling your home directly to a trusted company like Cincy House Buyer can lead to substantial savings and financial benefits. By eliminating realtor commissions, avoiding repair costs, covering closing costs, reducing holding costs, and sidestepping price negotiations, you can maximize the money you keep from your home sale.