People ask me all the time why I teach people to sell their home themselves. One reason is I work with a lot of military families helping them to find and purchase real estate. The first thing I want to know is does this make sense for you at this time. How long are you planning to be here? Can afford to pay real estate commissions if you have to move?
Military families move a lot. I know because I grew up in a military family and we were always moving, or so it seemed. We never spent more than a few years in any one place.
If someone is only going to be in a place for two years it doesn’t make sense to buy a house. They will likely have to pay to sell their home when the time comes to move. Yes, pay…to sell their home. Literally have to bring money to closing instead of leaving the closing table with a check. Imagine you just 2 years before bought your first home, paid your own closing costs of $4200, put in new floors for $3500 as soon as you moved in and now you have to sell.
You barely have built up any equity in the house and certainly not enough to pay $18,000 in real estate commissions. You have to make up the difference in real estate fees out of pocket.
Let me explain how that happens when you don’t or can’t live in one place long enough.
When you buy a house there is very little cost involved in the real estate transaction itself. When you go to sell your home that’s where the transaction fees (real estate commissions) get paid by the seller, you. It’s not legal to fix those transaction fees where I live but they are generally 6% of the contract price. That can get expensive. If one doesn’t have enough equity built up they will have to bring money to closing to sell their house.
So my client tells me the Air Force says they are keeping him here for 7 years. Great, that’s plenty of time to buy a house, make it a home and if the economy stays intact probably come out a little ahead when it’s time to sell. A year and a half later the same client calls me and says the Air Force changed its mind and they have orders to ship out. Can I please help them sell the house. One and half years is not enough time to build equity to pay those outrageous transaction fees. Especially with government backed loans like FHA or VA that require little or no down payment. Little or down payment equals little or no equity.
Please notice I call them transaction fees rather than what they are. Real estate commissions. Transaction fees comes off a lot softer. And yes, I get paid those outrageous fees when someone doesn’t know how or is scared to sell there house for sale by owner.
And it’s not just Military either. Sometimes bad things happen to good people and they get jammed up. People lose jobs, get sick, get job transfers or just are forced for whatever reason to give up their home through no fault of their own. If this family owns a $300,000 house the fees are going to be in excess of $18,000. That’s a lot of money.
That’s why I teach people to sell their home themselves.
You can easily sell your home yourself and keep your money.