07 Nov Agent vs. Real Estate Investor
Big Texas Home Buyers is a local real estate investment company. As a firm, we are passionate and enthusiastic about the improvement of property and overcoming challenges during the real estate acquisition process. We typically buy houses from homeowners that need to sell quickly and homeowners their house needs repairs or updates that prevent them from selling to a traditional home buyer. If you, as the current homeowner, are considering using a Dallas-Fort Worth realtor, we encourage you to carefully consider hidden costs and potential risks.
The cost of making repairs tends to be much higher as a homeowner. There are always unforeseen costs when renovating or remodeling and our team has the experience to predict the less obvious costs. This is due to the acquired knowledge of several years of experience purchasing homes. This has also given us time to determine who our core, trusted team of contractors and resources are and how to efficiently outline our budget.
Realtor Commissions and Title Fees
You can typically expect to lose 7% on the sales price of your home when using a real estate agent. Your sellers agent will receive 3%, the buyers agent will receive 3%, and the title company will receive approximately 1%. When selling your house to us, there are no agent fees and we pay all of your seller related closing costs, including title.
Documentation and Mandatory Process Fees
Most home buyers request an average of $5,000 in seller contributions at closing. In addition, an inspection is also guaranteed to happen. The home inspection often results in a list home repairs that also incur unexpected costs for mandatory home improvements that need to be fixed in order for the home to be suitable to sell.
Closing Home Repair Fees
Maintenance issues such as foundational work can be devastating to the home selling process. For example, let’s say You need foundation repairs. To be on the safe side, we can predict foundational work can be 5K to10K. As a result, new flooring will need to be installed because the foundation company needed to ruin and remove the existing flooring. Let’s add 2K for flooring depending on the sq. footage and type of flooring desired or needed. Foundation repair often leads to plumbing leaks. The average repair fee for plumbing ranges from 2K-7K. Next, those pesky stress cracks need to be repaired, re-textured, and painted. We typically allocate $3 per sq. ft. for texture and paint.
Another example pertains to a brick home. Be prepared to have a mason come inspect as well. If you’re lucky, it might cost $500 but usually you’re going to spend at least a couple thousand.
Additional Risk: Time
There is always the risk of your buyer not being able to close completely when expected, or maybe even at all. I mention this risk because this is one of my experiences that involved a delayed sale by nearly 2 months due to our buyer’s lender.
We were misled into believing it was a confirmed deal by all parties involved.
As it turns out, our buyer was denied the loan on the day before closing. He then applied for a loan with a different company and was accepted. We are satisfied that we finally closed but the arrangement could have gone either way…in our favor or against it. Regardless, we still had to wait three months for the entire deal to close.
Give Big Texas Home Buyers the opportunity to take care of the entire process for you, with ease. This means we absorb all capital liability and save you time while you are paid top dollar for you home. Call us today at: 214.444.9385