What Does Sell My House Fast Nashville to an Investor Mean?
Many people sell my house fast Nashville directly to investors because they can close fast, no commissions or fees will be paid by the seller, no closing costs for the seller, and it saves the seller from having to make repairs.
The kinds of homes Southern Homes Investments buy are:
- Homes needing repairs – sell “as is”
- Couples going through a divorce
- Stop foreclosure now
- Seller needs a quick sale to move on
- Health issues forcing a quick sale for cash and less worry
- Unwanted inherited property
- Job relocation and seller needs to sell fast
The Real Estate Investor
What purpose does the real estate investor serve in the local housing market? About 6% of all homes are owned by investors. Investors play a big role in buying distressed houses and homes that need to be sold quickly and effortlessly. Every neighborhood has one or two homes that are eyesores, and sometimes entire streets or even neighborhoods need a facelift. Real estate investors renovate distressed homes while adding value to the neighborhood. Also, by adding newly updated or renovated houses to tight market places like Nashville, Franklin, Donelson, Smyrna, and Murfreesboro, many homebuyers now have a chance to buy homes that before they could not. New construction cannot compete with many of the newly renovated homes because of soaring construction costs and a shortage of buildable land.
Home Ownership in Middle Tennessee is Expensive
Middle Tennessee has become an expensive area to live in. Land prices increase annually as well as labor and materials. New construction homes are no longer feasible for many homebuyers. As our local economy booms with new businesses and industries, increases in labor and material costs for new homes continue to climb. The local governments are seeking more revenue by charging higher prices for building permits, sewer and water connection fees, impact fees, and prolonged inspection periods.
Construction Costs Soar
These price hikes for land, materials, labor and government fees are causing new homes to cost more and new construction is being pushed further out into the surrounding counties. The higher prices are beyond the reach of many homebuyers who need affordable housing. It is difficult to find a new single-family detached home in Nashville and Murfreesboro under $250,000.
Sell My House Fast Nashville
Real estate investors with their sell my house fast Nashville programs may be the only hope for many first-time homebuyers. Renovated homes are usually closer to the city and sell at a lower price than new homes further out in the county or in a nearby town. Secondly, many investors buy homes that need little or no repairs from people who are forced to sell due to divorce, illness, unwanted inherited homes or they just need to sell quickly. These homes are then made available to other homebuyers who otherwise might be struggling to find an affordable home.
Is The Offer Fair?
Many home sellers of distressed houses or even properties needing some updating and repairs wonder why real estate investors offer low prices for their houses. I have had home sellers try to sell me their homes at full retail prices or maybe only $5,000 to $10,000 below other nearby homes in excellent condition. Let me share with you why this just doesn’t work.
Costs of Doing Business
When investors price out houses to make their offers, they are pricing in costs of repairs, cleaning, lawn updating and care, maintenance and closing costs. Investors selling a newly renovated house on the retail market know they are going to have to pay about 8% of the selling price towards real estate agent fees, commissions, closing costs, local transfer taxes, carrier fees, recording fees, title search, and title insurance.
- The investor sells a house on the open market for $200,000
- Investor pays about 8% closing costs & commissions, $16,000
- Net: $184,000 before subtracting renovation costs, carrying fees, purchase price and profit
Every day the house is vacant during repairs or sits idle on the market waiting for the right buyer to choose the house followed by the one to two-month closing process, the investor loses money. This is called carrying costs. Carrying costs includes city and county property taxes, homeowners hazard insurance, interest on borrowed money, utilities including water and sewer, electricity, and maybe natural or propane gas plus trash disposal. Because the home is vacant during this time, home insurance rates will be higher too. It is not unusual for carrying costs to be as high as $100 to $150 per day.
Renovation costs are just expensive. In larger cities, the prices escalate due to the higher demand for quality laborers and materials.
Every House Hides a Surprise
Behind every renovation project, there are surprises to be found. Whether there is a foundation issue, electrical problem, moisture in the house, or maybe the unexpected discovery of asbestos in insulation, linoleum floors, or popcorn ceiling, the costs can be in the hundreds or even thousands of dollars.
Hidden Risks for Investors
Every house an investor buys has hidden risks. Risks range from unknown problems with the house, codes issues, or a changing market where the number of homes being sold decreased bringing lower prices to other houses. This is happening today. Inventory of available homes for sale is growing and home prices are dropping due to oversupply. Enough of these risks can easily put the investor into a breakeven, or worse, taking a loss on the property.
Finally, after all the renovation costs are estimated, carrying costs accounted for, and closing fees calculated, the investor now has a pretty good picture going forward with the project. Once the retail sales price, renovation costs, carrying costs, and the offer amount are determined, the investor can figure his profit is for the project. If there is enough room to make a profit, the investor can make an offer. If the margins are too thin, meaning all costs added together then subtracted from the acquisition price, leaving too little profit for the risks involved, the investor either has to pass on the house or make a lower offer while explaining to the homeowner why the offer is so low. Bottom line, the investor has to be able to make a profit, a profit amount that offsets all the costs and risks involved with the house leaving the investor something to live on.
Investors Improve Neighborhoods
Good real estate investors bring so much good to the community through their sell my house fast Nashville programs. Neighborhoods are improved when the worse looking house on the block is renovated and new families move in. Neighborhoods are strengthened and homeowners take on a new pride about where they live. The program, sell your house fast, helps not only you in getting out of a situation, but the home is remodeled while bringing new life to a neighborhood.
Do you need to sell my house fast Nashville for cash? Call us at 615-235-0612 at Southern Homes Investments. We are happy to speak with you about your home and your needs.