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Americans Say $55,000 To Sell a Home is Too Much

Wed, 18 Sep 2024 16:36:58 GMT

According to a new survey by Clever Real Estate, home sellers in 2024 spend an average of $54,616 to sell their homes. 42% report the costs exceeded their expectations.

High home-selling costs and agent commissions are eating away at American sellers’ profits in 2024. Several months after the landmark National Association of Realtors settlement eliminated NAR’s rules on agent commissions, an overwhelming majority of sellers now want buyers to pay their own agent fees.

The cost breakdown for selling a home is:

Listing agent commission ($11,136)

Buyer's agent commission ($10,467)

Repairs ($10,000)

Closing costs ($8,000)

Concessions ($7,200)

Moving expenses ($3,250)

Marketing ($2,300)

Staging ($2,263)

Had they known the true cost of selling their homes, 89% of sellers would have approached the process differently. With a different strategy, they believe they could have sold their home for an additional $50,000 on average.

Agent Fees Are in a State of Flux

The 2024 NAR settlement eliminated the real estate trade association’s rules on set commissions for real estate agents. According to the Clever Real Estate survey, 94% of home sellers endorse proposed updates to the commission system where buyers would cover their own agent's fee.

Although home sellers support changes to the commission structure, nearly half (49%) are unaware that sellers pay the buyer's agent commission under the current system.

More than three-quarters of home sellers (77%) say commission rates influence their choice of a real estate agent. Notably, 60% of those who plan to sell without an agent say they're doing so precisely because real estate commissions are too expensive.

Despite acknowledging the importance of agents, 77% of home sellers are unaware of agents' responsibilities during the sales process. More than two-thirds say they believe that artificial intelligence (AI) could outperform human agents.

Agents Oppose NAR Settlement

Unsurprisingly, 70% of real estate agents oppose changes to real estate commissions post-NAR settlement. Only 15% of agents believe the changes will have a positive impact on their business, while 58% expect negative results.

Of the agents who believe the settlement will have a negative impact, 88% think it will discourage first-time buyers from entering the market. Eighty-two percent of Realtors believe the commission changes will hurt buyers, while 42% believe the changes will also negatively impact sellers.

Real Estate Investors: The Single Best Real Estate Investment They Made That You Can Do Too

Wed, 18 Sep 2024 16:24:23 GMT

R eal estate investing might seem like a daunting task, but as many people who have earned big doing it know, it is one of the quickest ways to build wealth.

There are multiple avenues for investing in real estate — some more or less risky and some you can do with very little money upfront.

Take the Leap

Nick Disney, a real estate investor and the owner of Sell My San Antonio House , said that his best real estate investment was quite literally the first one. Not because it was particularly special, but because it was his entry into real estate investing.

In 2008, Disney bought a small single-family house that needed a fair amount of work as an investment.

“I have talked to hundreds if not thousands of investors or future investors, and it’s very hard to make that first investment because there’s just so much you don’t know and there’s so many things you think are going to go wrong,” he said.

With some courage and some moral support from others, Disney was able to put $62,000 into purchasing the house.

“I had a good job, and I’m a good saver, and that still pays dividends today. It wasn’t any creative financing. I saved up my 20% down, and I thought it was all the money in the world when I put it down at the time and was able to get basically traditional bank financing because it was a fixer-upper,” he explained.

He then fixed it up, putting an additional $12,000 or so of his own money into rehabilitating it, and sold it at a profit.

Getting In Is Most Important

Looking back, Disney can see that this first project wasn’t particularly big or difficult, but he recalled how overwhelming and risky it felt to him. Today, he’s realized how easy that deal actually was.

He said that real estate investing also has a tendency to build on itself. “I know know a ton of people who have bought zero investment properties and a ton who have bought five, 10, even 50. There’s no one that just buys one,” he said.

However, he acknowledged that getting past the first one is the hardest because it requires taking a leap and committing to something that feels unknown.

The Power of Appreciation

Tanya Lechner, a Realtor and the founder of Sunshine Real Estate Team , echoed Disney’s story, saying that her first purchase was, in some ways, her best because it got her into the market.

“I purchased my first home when I was 24 years old, and it was the best investment I made. This was even before I started investing in real estate. The appreciation alone is what made it a great investment,” she said.

Since then, she has bought rentals and flips, yet her primary residence has been the best investment overall because she’s been able to roll over the equity three times.

“Now the house I’m living in is worth almost $1 million when my first house I bought 14 years ago was $127,000,” she said.

Distressed Properties

Chad Breeden, the owner and founder of Sentry Real Estate , said that his best investment was buying a distressed property in Richmond, Texas, at a low price, fixing it up and flipping it for a really nice profit.

“Fix-and-flip properties can offer great returns when you buy at the right price and focus on value adding improvements, which makes it a great strategy for new investors,” he said.

The Biggest Benefit

The biggest benefit of starting to become a real estate investor, especially long term, for the average person is that it is an incredible way to build wealth, according to Disney.

“And you don’t have to be a full-time real estate investor to do that. You can do it over time with even just a handful of rental properties. Over the long run, [it] will make you a millionaire. It’s just the math, and almost anyone can do it” he said.

Your First Deal Will Teach You

While you can read many books, watch videos and get as much education as possible, Disney said there’s no teacher like hands-on experience. “The amount that you learn on the first deal is going to be tremendous,” he said.

Once you’ve done it once, it builds confidence to do it again and again, according to Disney.

“Real estate investing has made more millionaires than anything else that I think anybody knows about. Everybody knows that quote … but it really can pay huge for the average person with just a few deals, especially if they’re long-term deals like a rental property over their lifetime,” he explained.

Networking Is Key

Gagan Saini, a real estate investor and founder of We Buy Houses in Metro Detroit , has had many great real estate investments, and said that for people trying to break in, networking is the best thing they can do. “Networking is the number one thing, because in real estate, you make your money on the buy. So make sure that you have a good agent that is well versed in what an investor is looking for, for discounted properties that need fixing up, etc.,” he said.

If you can network with agents, other investors and wholesalers who send you off-market deals, that’s a great way to start investing and learning what a good deal looks like, he explained.

Get Feedback

Having those trusted partners can help you before you close on a bad deal too, Saini said. “If you feel like something’s a good deal before you pull the trigger and put an earnest money deposit down on it, have an agent you trust, pull comparables and make sure you ran your numbers right,” he said.

If you can take that first step into real estate investing with just one property, you are that much closer to building wealth.

Quick Cash, Quick Close: The Benefits of Selling Your House to Cash Buyers

meritapprovedinvestments@yahoo.com (Merit Uehara) — Wed, 18 Sep 2024 16:11:49 GMT

In today’s fast-paced real estate market, selling your house to cash buyers represents a streamlined alternative that many homeowners are considering. This approach not only simplifies the selling process but also offers a range of compelling advantages that can make it an attractive option for those looking to close quickly. Here’s a closer look at why selling your house for cash could be your smart choice.

Immediate Financial Relief

When you sell your house to a cash buyer, one of the most immediate benefits is the quick financial relief it provides. Cash transactions are straightforward, unlike traditional sales, which can involve lengthy mortgage approvals and financial contingencies. Cash buyers typically have the funds ready, meaning you can access your money much sooner. This is particularly beneficial if you’re facing financial challenges or need to quickly unlock the equity in your home to cover other expenses.

As-Is Purchase Saves Time and Money

Cash buyers often purchase properties “as-is.” This means they take the house in its current condition without requiring you to make costly repairs or renovations. This can be a huge relief if your home requires significant updates, or you don’t want to invest more time and money into a property you’re leaving. Not having to stage the home or deal with multiple inspections can save weeks, or even months, in the selling timeline.

Avoiding Complications and Uncertainty

A traditional home sale can be full of uncertainties. Deals can fall through, buyers can back out, and appraisals can come under value. You bypass many of these hurdles when you opt for a cash sale. Cash sales often close more quickly and with fewer complications since they don’t involve intricate layers of approval. This reduces stress and provides much more certainty throughout the process.

Fewer Fees, More Savings

Selling your house to cash buyers can also lead to savings. For one, cash purchases typically involve fewer fees. There are no lender fees, appraisal fees, or as many closing costs as you might expect in a traditional sale. Additionally, since the process is expedited, you could save on additional mortgage payments, utility costs, and property taxes accumulating over time.

Flexibility with Closing Dates

Cash buyers often provide more flexibility when it comes to closing dates. Whether you need to close within a few days or require a bit more time to relocate, cash buyers can usually accommodate your schedule. This flexibility can be precious if you must coordinate your home sale with purchasing another house or relocating for a job.

Streamlined and Stress-Free

The overall process of selling your home to cash buyers is significantly more streamlined than traditional methods. With the need to list your property, stage homes, or host countless showings, your life is much smoother. You can avoid the emotional rollercoaster of waiting for potential buyers to make offers, negotiate terms, and hope everything goes as planned.

Quick Market Exit

For those looking to move on from their property quickly, nothing beats the speed of a cash sale. Whether you’re dealing with a divorce, a loved one’s death, or a sudden relocation, selling for cash offers a quick market exit. It allows you to move forward with your life without the lingering worries of an unsold property on your hands.

Reduced Risk of Sales Falling Through

Cash sales dramatically reduce the risk of sales falling through. The common pitfalls related to buyer financing do not apply here, meaning once an offer is made, it’s more likely to close without issues. This reliability can be critical if you have tight deadlines or can’t afford the risk of a collapsed sale.

Transparency and Ease

A high level of transparency often marks cash transactions. Buyers typically explain their calculations and the process involved, providing you with a clear understanding of how the price offer was determined. This straightforwardness can ease the mental burden of the sale, as you’ll have fewer uncertainties to worry about.

Choosing to sell home quick to cash buyers offers many benefits that streamline the entire sales process. This method provides immediate financial relief and simplifies every step of the transaction. If you’re seeking a hassle-free approach that avoids the typical complications of the real estate market, selling your home for cash is undoubtedly a wise choice. With a fast transaction and minimal fuss, you can move swiftly and confidently into your future endeavors.