The Solution

It is true that in most cases, a seller will receive the highest purchase price by listing with a broker and selling through the MLS.  And while it may be the highest purchase price, selling costs will be deducted from this amount.  In our area, typical selling fees include 5% commission (2.5% to listing broker, 2.5% to the buyer’s broker), half of the title/escrow fees, transfer tax, property taxes, recording fees, home warranty and any repairs or buyer incentives.  This can easily equate to 10% of the purchase price.  Post-sale capital gains taxes can be a concern as well!   Still though, it’s the most profitable way to go for most folks, especially if their home has been kept up and can compete with other updated homes it must compete against in the open market!! 

But that process is not everybody.  Some sellers are not comfortable with that level of scrutiny of their homes, or their lives.  They may have long-needed repairs that will drag the value down, and these repairs will not be fixed!  They may be dealing with a life event where the focus is just not going to be on the sale of the home, and that’s not going to change because an agent gives them a list of things to do to “get Top Dollar!”  Capital gains could also have an investor, wanting to get out, feeling trapped!  These situations are not wrong.  It’s just life; we’ve all been there. 

The reality is…to sell each of these homes with creative financing could allow these sellers, and any other seller that is open to terms, to profit more than the “highest purchase price” scenario that I painted above.