How Much Cash For Houses In Minneapolis St Paul Can You Get?
If you’re thinking about selling your house, here’s how much money you can get $$$
Sellers are asking about cash for houses in Minneapolis St Paul – they want to know how much they will get if they sell their house to an all cash buyer. If you’re thinking of selling and wondering how much you might get, this blog post will help to answer that question.
An Important Definition
Since this blog post will be read by people all over Minneapolis St Paul metro area (and surrounding areas), with various price points reflected throughout the area, it’s difficult to write about a specific dollar figure. However, here’s an important concept that will help you understand how much people pay cash for houses in Minneapolis St Paul… It comes down to a simple formula.
On The Market: When a house is sold “on the market”, that means it’s usually listed by a real estate agent placed on the MLS and sold after several potential buyers have seen the property and at least one has made an offer. Houses sold on the market reflect the sale price of similar houses that have the same amount of square footage, bedrooms, bathrooms and garages. Often these houses need to be sold within the last 90 days and within 1/4 mile of the house in question. This is called “market price”.
Off The Market: When a house is sold “off the market”, that usually means the homeowner has decided to sell their home directly to a buyer instead of listing their home with an agent and placed on the MLS. Houses sold off the market will often be sold for slightly less than their market price, this is called “below market price.” They can be sold at below market price because they are not paying any realtor fees and the house is sold as-is.
You might be reading this and asking, “why would anyone accept below market price, and less cash for houses in Minneapolis St Paul than others?”
That’s a good question but there’s more to the story:
- Selling on the market usually means you’re selling it to a person who will choose to live in the house. They’re buying the house for themselves and their family. Normally these homes are in good shape and all needed repairs have been done by the home seller prior to putting it on the market. If something was not repaired before hand, often that item is noticed during the inspection period by the home buyer and they ask the home seller to either have it repaired or a discount is given on the sale price to reflect the issue. But when you sell off the market, you’re often selling to a company that might be investing in your house to turn it into a rental property or to renovate it and sell it. They are expecting things that need to be addressed and when they offer you a price those things are considered in the offering price.
- Selling on the market usually means the buyer needs financing. Selling off the market, in a private sale, often means that a professional home-buying company is will to pay cash for houses in Minneapolis St Paul. (That’s why some people prefer to sell off the market – they don’t want to wait for the seller to get financing; they want to know they’ve sold the house right away). about 10% of all home buyers getting financing find that something comes up and they can close on the house they wanted to buy. That puts everyone in a pinch.
- Selling on the market actually costs money… sometimes a lot of money. If your house needs renovations and repairs, you usually have to spend money to fix up your house before you sell it on the market. Did you know that most outdated houses are in need of a new kitchen and bathroom. New kitchens even in moderate home cost an average of $30,000 while the average bathroom remodel is $10,000. That’s a lot of money and energy to put into your home when you only want to sell it. However, when you sell it off the market, such as to a company like us at Minnesota Cash Home Buyers, you may be able to sell your house as-is – saving the money (and the time and hassle).
- Selling on the market through an agent will often result in commissions and fees to the agent for the work they did to sell your house. Those commissions on average 6% of the total amount of the sale. That means a $200,000 home will have a commission amount of $12,000 taken out of the price you are offered at closing. But selling off the market to a home buying company like Minnesota Cash Home Buyers usually means no commissions or fees or closing costs.
How much can you get for your home? Selling on the market may mean you sell your house for more money but it takes longer and costs more when you consider all the repairs and commissions; selling off the market may mean you sell your house for below market price but it’s faster and there are no expenses or fees. We at Minnesota Cash Home Buyers even pay all your closing costs including us closing at a professional title company.
So, how much will sellers get in cash for houses in Minneapolis St Paul? It depends on how you sell – on the market or off the market… and that is determined by how quickly you want to sell and how much time and money you’re willing to invest to sell.