This is a great question! For any transaction to be fair, it must be a win win. Both sides have to feel as if they got what they needed from the transaction. What our past client home sellers tell us is that they typically are looking for a quick sale (though not always) and we can definitely help both types of sellers. ( You choose your close date, your in the driver seat on this decision)
Quick sale can mean 10 days, 2 weeks, 30 days. The key is whatever date you need, we can accommodate and work with you. If there are tenant issues for example with the property, then we would need to wait for the tenants to vacate, and sometimes that can take some time. Or, in other situations family members are staying at the property, and they need time to find another home to move to. Point is, quick can be 10 days or 60 days and its up to you. We can accommodate them all. We’re working with a seller now that we’re in agreement with on price and terms, that isn’t moving for another 12 months. Guess what? In 12 months, we will be ready..
Anyway, back to the fair price question. What does this mean for both sides? For the home seller, often times we hear from current and past clients that some important factors are: having enough funds for a down payment or a purchase on another home, close date is important, fair price, as is purchase (meaning you will not have to do any repairs on the home), and not that many people coming through the home (though some we need to send out to inspect the home) but not a parade of 45 people 🙂
The issues for us on a fair offer are as follows: We look at the resale of the property, we factor in the repairs needed (hence why we do a walk through to view interior to gauge repairs needed) we calculate our holding costs (insurance, taxes, maintenance) and then our profit. (yes, for this to work both sides have to win win, and for us, we do have to realize a profit on the home sale on our back end)
Couple things on Murphys Law: Basically what it means is that what can go wrong, will go wrong. Not saying it will, but often times on older homes, when we open up the walls, we find new electrical work that is needed, new plumbing work needed, foundation work needed and the list goes on. Its fair to say, that every house has a handful of surprises (not good surprises haha) of more work that is needed. And if permits are needed by the village, this slows the process down considerably and adds cost to our rehab of the home. All this to tell you, that when we rehab a home, there are always budget over runs on rehab costs 🙁 So we try to factor that in at least to some point. Last thing we want to do is lose money on a project.
Specific on pricing of the home, the happy medium is the intersection of where it works for us and the home sellers threshold of where it works for them. The other side of this agreement is to make sure the price offered meets or exceeds your expectations as a home seller. Lets have a conversation to see where we both need to be for the numbers to work. Call or email us today!