The cheapest way to sell a house is to sell it to a cash home buying company. In this article, we will discuss WHY selling your house to a cash home buyer is by far the cheapest way.
What is a Cash Home Buying Company?
First, so we’re all on the same page, we will provide a quick definition of what a cash home buying company is.
A cash home buying company is a formal company that buys houses for cash from you, the seller. For example, our company Sesa Properties, buys houses for cash, as-is in Cleveland and throughout Ohio.
In this article, we’re referring to formal cash buying companies. Some individual cash buyers (investors) may also offer the same cost benefits, but not all do. In turn, we focus on cash home buying companies to avoid confusion.
Why is Selling to a Cash Home Buyer the Cheapest Way to Sell A House?
Wondering why selling to a cash home buying company is the cheapest way to sell a house? Here’s the reason. It is because these companies pay for (or cut out) all the costs of selling.
They buy as-is so you make none of the repairs and updates mentioned.
They pay your closing costs so you save thousands of dollars there.
They don’t use real estate agents so you don’t pay out 5-7% of the sales price.
We disclose all the common costs below. Once you see the list it becomes clear that selling a house with a realtor or by yourself is expensive. It also becomes clear how much money you will save and/or avoid by selling your house to a cash buying company.
What Costs Should a Seller Expect When Listing A House on the MLS Market?
If you are looking for the cheapest way to sell your house then we’ll assume you know selling a house is expensive! But do you know all the costs? Do you know how expensive?
It’s helpful to understand all the costs that go into selling your home. If you don’t understand this before listing you might be in for a shock!
Once you see the laundry list of costs tied to selling a house you will understand how expensive it can be.
Selling Expenses Before You List Your House
If you want to sell your house fast and for close to asking you will need to put some money into it. Outdated components (kitchens, baths, flooring, paint, popcorn ceilings, etc.) should be updated. If it has broken things you will need to fix them.
If you want people to get excited and consider your house you will need to put some money into it. Make sure it’s up to date, has no obvious repairs, and it stands out.
Here’s some pre-selling costs that you may expect to get the house market-ready and to sell for top dollar:
- Painting: interior: ($1.50-$3+/SqFt)
- Painting exterior: ($1.50-$3+/SqFt)
- Landscaping: cleanup and curb appeal ($300-$500+)
- Deep cleaning: $100-$150+
- Pest treatments and/or inspections and treatments for roaches, termites, ants, etc. – if you have this issue make sure to contact the best pest control companies in Cleveland, Ohio)
- Flooring ($2-$5+/SqFt)
- Rental bath renovation: $3,000 – $5,000+ per bath
- Rental kitchen renovation: $4,000-$5,000+ per kitchen
- Primary house bath renovation: $5,000 – $10,000 + per bath
- Primary house kitchen renovation: $5,000-$10,000+
Selling Expenses After The Buyer’s Home Inspection
This can vary quite a bit. It will depend on the condition of your house and how picky the buyers are.
Inspectors will note every single thing, regardless of how minor, during the inspection. This will usually scare the potential buyer away or cause them to ask for repairs or concessions.
- Things that buyers commonly ask for concessions/repairs for include:
- Any and all safety related issues (depends on the specific issue)
- Hot water heater replacement even if its not past its useful life ($1200-$1500)
- Pest treatments and/or inspections + treatments (roaches, termites, ants, etc.) (depends on the specific issue)
- Roof repair or money towards a roof replacement (depends on the size of the house and the specific issue)
- Furnace service, repair or replacement (depends on the specific issue)
- Electrical replacement/re-wire in the case of outdated/unsafe electrical ($3,000 – $5,000 but will depend on the specific issue)
- Central AC service, repair or replacement (depends on the specific issue)
- Money towards new windows (for older houses) (depends on the number of windows)
- Money towards lead paint abatement, asbestos removal, etc. (depends on the specific issue)
Closing Costs Are Expensive
The closing costs you will pay when listing your house with an agent to a traditional buyer might shock you. Sellers often don’t realize how expensive closing costs can be, but they are expensive.
Real Estate Agent Commissions Are Expensive
The most expensive closing cost by far is realtor commissions and fees. Real estate commissions usually range from 5-7% of the sales price (not your profit).
The seller’s agent and the buyer’s agent split the commissions, but you, the seller, have to pay the entire 5-7%. Even if you aren’t using an agent you still have to pay a commission to the buyer’s agent.
According to Zillow the median home sale value in Ohio is ~$161,000. For a house selling at this price, you should expect to pay realtor commissions of $8,050 – $11,270.
If there’s only one agent, you should expect to pay around 3-4% of the sales price based on our experience.
Do you want to sell your house cheap? You should put some serious consideration into selling without real estate agents.
Other Closing Costs Are Also Expensive
Besides real estate agent commissions, there are also typical closing costs.
Typical closing costs (and costs based on what we pay) you should expect to pay include:
- Title company title search/title exam fee (~$300)
- Title insurance binder (~$100+)
- Title insurance ($175+)
- Notary fees ($100+)
- Attorney fees (~$100+/-)
- Courier/express delivery fees ($25+)
- Wire fee ($25-35+)
- Recording fees ($40-50)
- HOA transfer fees (for condos)
Your closing costs as the seller are expensive enough. But many buyers also ask for closing cost help. This is especially true for buyers using a FHA mortgage and those who can’t afford the costs and prepaids.
There are certain limits on the credit you can provide to a buyer, but sellers could ask for 3-6%+. You may need to provide concessions and closing costs help to find a buyer. So this is something you should expect to pay.
How Do You Eliminate All of These Costs and Sell Your House Cheap? Sell to a Cash Home Buyer
Cash home buyers eliminate all the costs of selling your house.
- Cash home buying companies buy as-is. You make none of the repairs, renovations or updates mentioned above. You don’t even have to paint or clean.
- They don’t use real estate agents so you pay zero real estate agent commissions. This gives you a massive savings (5-7% of the sales price).
- These companies pay all your closing costs so you save thousands of dollars at closings. They also don’t ask for closing cost help.
Want to Sell Your House Cheap and Easy In Cleveland Ohio? We Want to Buy It!
Sesa Properties buys houses for cash in Greater Cleveland OH and throughout the rest of Ohio. We buy 100% as-is, pay all of your typical closing costs. We also buy direct from you without any realtors so you pay zero commissions or fees.
If you want to get a fair, firm cash offer for your house in OH then fill out our quick form. If you prefer to talk then text or call us at (216) 877-8430 for a free consultation. Our offers are obligation free. You move forward if and only if you are happy with the offer.