I have spoken of FMV as a cornerstone in our discussions. The fair market value of the property is today’s price at which a knowledgeable buyer and seller can both agree. It is without interference or distress. The transaction is “arms length” and the parties are not related. It is from this neutral the starting point which any adjustments are made.
Looking at comparable sales, we can adjust up for things like a rising market, location, low supply, condition or features like a larger lot, solar panels or a pool. On the other hand, we would adjust down for things like poor location, bad neighbors, repairs, delinquent taxes or aging roof, fences and HVAC systems.
With today’s FMV, we can look forward a reasonable amount of time, say 4-6 months, and project possible values. This however goes both ways. Future elections, rising interest rates and trade uncertainty await us as headwinds in 2020. In times of such uncertainty, any FMV price would have a shorter life span beyond a given date.
OK. So your circumstance says its time to go. Loss of job, bad break up, medical bills, bad renters, judgment or worse, ITS TIME TO GO. Selling real estate can be difficult, costly and time consuming. Add on the pressure of your circumstance and a quick cash offer is the best solution. Just so there are no surprises, sellers should tally up the costs of a sale: Sales commission; Seller closing costs; Buyer closing costs. Next are any Back payments; Taxes; HOA fees; Prorations; Utility bills; Liens etc. Additional costs are deferred maintenance, sale preparation and repairs. Oh and don’t forget the carrying costs while marketing and during escrow. Finally, as a cash investor, I would expect to see a profit for my risk and a return on my cash investment. Taking all of these real costs into account allows you to understand a Quick Cash offer – No Surprises.