Have you thought about selling to a Teardown builder in Madeira, Montgomery, Hyde Park, Mt. Lookout or Mariemont?
If you’re like many Cincinnati homeowners, you might be thinking of selling your home. The market is stronger than it has been in years and interest rates are still at record lows. There’s no doubt, this is a great time to take advantage of being in a sellers’ market.
Your gut inclination might be to call a real estate agent to list your home on the open market. You’re not wrong to do so. In fact, that’s the route most people go.
But what if we told you that you could actually SAVE money by selling your home to a builder like Legendary Custom Homes? We are teardown builders serving the Hyde Park – Mt. Lookout, Madeira, Mariemont and Montgomery neighborhoods.
“Selling your home to someone who is going to tear it down?! No way!,” you might be thinking. You raised your children in this home. Your grandchildren learned to swim in the pool out back. You’ve hosted countless sleepovers, Sunday dinners, PTA meetings and birthday parties in this home – no way do you want a builder to tear it down.
We get it, because we’re homeowners too. The good news is, we also rehab properties.
Tear down rebuilds are also not for everyone. You may want to sell to someone else who is going to make improvements to the property and raise their own family there, too. In reality, most homes are not good candidates for teardown rebuilds either. We never want to come in and tear down a home that’s in perfectly good condition. Nor will we be able to compete on price if the home is in great shape already.
However, if you’re looking at pouring thousands of dollars into renovations to make it market ready, then selling to a builder can make a ton of sense. Investing $30,000 in a kitchen remodel or spending $10,000 on a new roof usually isn’t worth the investment for people looking to sell. In the Cincinnati area, most sellers won’t fully recover these costs if they’re planning to sell in the near future.
Big-ticket items notwithstanding, there are other ways selling to a builder like Legendary Custom Homes can save you a lot of money. Let’s use the example below, which analyzes the costs associated with selling a typical suburban Cincinnati home for $200,000 on the open market.
|Buyers Discount (3%)||$6,000.00|
|Real Estate Commissions (6%)||$12,000.00|
|Carrying Costs (6 Months)|
|Mortgage Payments Per Month ($1200 X 6)||$7,200.00|
|Utilities Per Month ($200 X 6)||$1,200.00|
|Insurance Per Month ($60 X 6)||$360.00|
|Taxes Per Month (Hyde Park Tax District)||$1,320.00|
|Property Maintenance Per Month (Based On HSA data)||$1,998.00|
|Cleaning and Repairs to List||$2,500.00|
|Net Proceeds After Expenses||$158,197.00|
There’s nothing unique about this example. Indeed, it’s very typical of the costs associated with selling a home in Ohio. The biggest cost homeowners incur when selling their home through a real estate agent is the cost of commissions. Agent commissions can range anywhere from 4-7% of the total purchase price. That money is split between the listing agent (who represents the seller) and the buyer’s agent. And it’s the SELLER who has to pay for the commission of both agents.
When you sell directly to Legendary Custom Homes, you won’t have to pay that commission.
You’ll also save thousands of dollars in other areas. For instance, we are NOT going to load a contract up with a number of contingencies that delay the sale. We buy homes for cash so we don’t need to worry about whether a bank will approve our financing. We are NOT going to ask you to repair that leaky faucet or give us any seller concessions. We are NOT going to badger you about keeping the refrigerator. You can take it with you when you go.
All of these costs add up quickly. Selling your home to a builder like us allows you to close faster and with more certainty.
In case you were wondering: Yes, teardown builders pay less for houses than people would get by selling a fully-renovated home on the open market. But if you’d rather skip the laborious and expensive renovation process needed to get your home ready to sell, selling to a builder at a discount is a great option. Using the above example as illustration, you’ll see that a builder who offers you $160,000 is no different than selling for retail price after your expenses are deducted. And this example doesn’t even include the thousands of dollars you might need to sink into renovations to reach that $200,000 asking price! In that case, selling to a builder would absolutely save you money.
Some homebuilders look to steal properties for pennies on the dollar. That’s not the case with Legendary Custom Homes. We will always make a fair offer based upon the potential return on our investment. There is no trickery involved. And that’s how Legendary Custom Homes has earned the reputation as the #1 homebuilder serving the Hyde Park – Mt. Lookout, Madeira, Mariemont and Montgomery neighborhoods. We’re deeply engrained in these communities and have a vested interest in protecting those who live here.
If you’re thinking of selling your home, give us a call. Matt Stanley (The Owner of Legendary Custom Homes) will be happy to schedule a meeting with you to help you determine whether your home is a good teardown candidate, and if so, how we can proceed in a way that works for everyone involved.