When reviewing offers for your Fort Myers property, it important that you know how to correctly run the numbers. Just because an offer looks good on paper, doesn’t mean it is the best choice for you. Learn more about how to crunch the numbers in our latest post!
While the highest offer might appear to be the best, this isn’t always the case. There are many numbers you will need to factor in when reviewing offers for your Fort Myers house. Below, we discuss some of the costs you may face when selling your home in the Fort Myers area.
Closing Costs
In a conventional sale to a private buyer, sellers typically incur closing costs amounting to about 2-5% of the final sale price. Though this figure may vary depending on the specifics of the transaction, it’s wise to budget for at least 5% to cover potential closing expenses. Avoid being caught off guard at the closing table by ensuring you have allocated enough funds, preventing any unexpected financial obligations.
Repairs
While reviewing offers for your Fort Myers house, you’ll want to consider all of the costs you encountered making repairs and fixing it up. Repairs aren’t always cheap, and you will likely have to face them before putting your Fort Myers property on the MLS. In addition, your potential buyer will likely attempt to negotiate even more repairs once the inspection has been completed. Spending money on a house you ultimately want to sell can be extremely frustrating, with a direct sale, you’ll be able to keep that cash in your pocket.
Other Contingencies
Buyers often include various contingencies in their contracts to safeguard themselves in case of unforeseen issues. These contingencies provide buyers with an exit strategy without facing penalties if problems arise with the property. Common contingencies encompass scenarios such as the inability to sell their current house promptly, withdrawal of financing by their lender, or the discovery of a substantial number of repairs required following inspection.
Timeline
How fast will your buyer be able to close? As any property investor will tell you, the longer you hold on to a property, the more it will end up costing you. Holding costs can add up quickly, eating into your profits. While the property in on the market, you’ll have to continue paying for things such as homeowners insurance, property taxes, utility bills, possibly a mortgage, and routine maintenance on the property. You are responsible for these items up until the day of closing. If your house sits on the market for a while or if your sale falls through, you could find yourself stuck paying these costs for the next several months.
Risk
When reviewing offers you’ll want to calculate the risk involved in the sale. If your buyer is using financing, you’ll want to be prepared just in case things fall through. Often times, a lender will back out of the deal if a property appraises too low. Sales fall through every day, and you’ll want to be prepared if yours does too. If you’re working with a buyer who is using financing, make sure they are pre-approved, not just pre-qualified.
If you choose to sell to a cash buyer, your risk of things falling through drops significantly. Cash buyers will have the money ready to go before making an offer for your property. This will save you days or even weeks as opposed to dealing with lender requirements. When you sell directly, you won’t have to deal with appraisals, inspections, repairs, or any red-tape from a lender.
If you choose to work with a local {market_city] real estate agent, you’ll have to commit to a listing agreement. Once you have entered into this agreement, your agent will be entitled to their commission, or at least a part of it, no matter how the house sells. However, if you are able to find a reputable buyer such as Core Real Estate Properties before hiring a Fort Myers agent, you’ll be able to instantly save on commission costs. This can be upwards of 6% of the final sale price that you’ll be able to keep in your pocket. This could amount to thousands of dollars you will e able to use for your next property should you so desire.
Appliances and Fixtures
In the process of selling a house, the inclusion of furniture, fixtures, and appliances can be significant factors. It’s essential to determine whether your potential buyer desires to retain any of these items or if you’ll be taking everything with you. If you decide to leave items with the new buyers, it’s crucial to consider the cost of replacing them. Replacing appliances, fixtures, and other essentials in your new home can incur substantial expenses. Therefore, it’s vital to be prepared for these replacement costs before accepting an offer for your Fort Myers property.