When reviewing offers for your San Antonio property, it is 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. You must consider all the factors and focus on what is best 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 San Antonio house. Be careful not to get seduced by a high offer price that isn’t all that it appears to be. Below, we discuss some of the costs you may face when selling your home in the San Antonio area.
Closing Costs
With a traditional sale to a private buyer, a seller can expect to pay about 8-10% of the final sale price in closing costs. While this varies by the transaction, you’ll want to budget at least 9% to closing costs to ensure you are covered. You don’t want to be surprised at the closing table, leaving with a lot less than you had planned for.
With traditional sales, you need to account for realtor fees for both sides, title insurance, title fees, survey, attorney’s fees, home warranties, and other miscellaneous costs. These things can really add up and leave you with a lot less than you planned.
Repairs Costs
While reviewing offers for your San Antonio 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 San Antonio 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, the offer price may be less, but you may be able to keep that cash in your pocket.
If your house needs major repairs, the buyer’s mortgage company will almost always require that those be done before they will lend on the property. This means that even if the buyer doesn’t request those repairs, they will have to be done anyway. This can be avoided if the offer is all cash because there is not a lender involved.
Other Contingencies
There are all kinds of contingencies a buyer might put in their contract. Having a contingency protects the buyer should something go wrong and sometimes if they just want to change their mind. These can be difficult to spot.
If there is a problem with the property, they will be able to back out of the sale without any penalty. Some common contingencies include things like not being able to sell their current house in time, if their lender backs out of the deal, if the property doesn’t appraise for enough, or if the inspection comes back with a significant number of repairs that need to be made.
Timeline Concerns
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 is 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.
Do you need to close by a certain date? It’s not just the cost of holding on to the property but the uncertainty of when it will close. Many people have to move for a job, have already bought another house, or have some other reason that they are on a tight timeline and that can be much more important than the offer price.
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. Oftentimes, 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. Do they have extra money to put down if they need to?
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, weeks, or possibly even months 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 Sell My San Antonio House before hiring a San Antonio 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
Sometimes when selling a house, the furniture, fixtures, and appliances will all come into play. Does your potential buyer want to keep any of these items or will you be taking everything with you? If you are leaving any items with the new buyers, you’ll want to factor in how much it will cost you to replace these items. Having to replace appliances, fixtures, and other items in your new home can cost a fortune. Make sure you are prepared for these replacement costs before accepting an offer for your San Antonio property.
Remember offers can come in all shapes and sizes. Some are good, some are bad, and some offers are just plain strange. Take the time to really review and think about the offers. What is most important to you? How does the offer fit your needs? Don’t get sucked in by a high offer price that has a lot of holes in it. It is your house and you get to decide what is most important to you and which offer is really best for you.