Speed Matters When Selling A House
The first thing I’d like to discuss is why speed matters when selling. I think that it matters for three reasons.
The first reason is markets are changing all the time. The second reason: holding costs. And the third, getting in and out quickly means you could do more deals a year.
Let’s talk about each one very briefly. The first one: markets are always changing. Prices can be dropping, markets could be slowing down. Now, if you’re out there and you’re buying a house and it’s taking you two or three months to sell the house, could you see that if the market is slowly slowing down and prices are not going up and the prices may even be going down how it can be a big impact on your bottom line if it takes you three months to sell a house? Well, that’s one of the reasons why being able to sell a house in a weekend with a round robing bidding process is so important for you to use.
The second reason we talked about was holding costs. Now, if you’re taking three months to sell a house and your holding costs, which are not just your mortgage, taxes and insurance but also utilities and maintenance – I mean, I’ve had vacant houses over the winter and the snow kept piling up and kept having to pay to have the driveway shoveled. The house is vacant and I’m trying to get it occupied, and I’ve got all these maintenance costs, so you gotta really be careful with your holding costs when you’ve got all these properties. Being able to sell a house quickly in a weekend using a round robin bidding process can significantly improve your bottom line. You’re saving, on a $200,000 house – between the mortage and all the other expenses, $1,500 – $2,000 a month in cost. So, instead of taking three months to sell a house, let’s say you can get the house sold in the first weekend and it only takes three more weeks to close, you have just saved yourself somewhere between $3,000 – $4,000. Over the course of a year, if you’re doing four or five deals a year, that’s pretty significant money. You’re talking $8,000 – $10,000 or so of savings that you’re adding to your bottom line.
Holding costs can become significant if you don’t take time to sell something quickly. The third thing we talked about is by getting in and out quickly, it means you could do more deals. How many more deals could you do if you didn’t have to hold a house for three months at a time to sell it? If you can get in a house, get it fixed up and get it sold in the first week you try to sell it and then wait three weeks for the closing, you could be out there looking for other houses while you’re waiting for your closing to happen. You could be doing maybe two or three extra deals a year. Two or three extra deals, if you’re averaging $20,000 a deal, that’s $40,000 – $50,000 in extra profit just by being able to sell houses quickly. It’s critical that we learn as real estate investors to be able to sell houses as quick as possible, and this round robin bidding process is going to get you the full market value for your house very, very quickly. It’s a one step, one shot – I’m gonna get the house sold type of model.
Sincerely,
James
P.S. For more information on how to sell your house in a weekend, download the audio CD course.
Related posts:
- Using A 24-Hour Recorded Information Line for an Open House When Selling Your House In A Weekend By Auction A 24-hour hour recorded information line will give potential buyers the opportunity to get more...
- Overview of Marketing For Selling Your House In A Weekend In some other recent posts I’ve been discussing selling your house in a weekend. Let’s...
- Selling Your House Via Auction? How To Failure-Proof Your Round Robin Bidding Process Since the goal is to sell your house in one weekend, you need to be...
- Learning From Marketing When Selling A House Before we get too far into the details, I do want to take a step...
- Overview of Selling Your House In A Weekend Here’s an overview of the whole process of selling your house in a single weekend....
- The Theory of Selling Your House In A Weekend Let’s look at the theory behind selling your house in a weekend. What we’re going...
- Selling Your House In A Weekend Using Websites In some other recent posts I’ve been discussing selling your house in a weekend. Let’s...
- Working Your Buyers List When Selling A House Using An Auction When preparing for an open house, you need to contact buyers with whom you have...
- Selling Your House In A Weekend Using the MLS In some other recent posts I’ve been discussing selling your house in a weekend. This...
- Using Newspaper Classified Ads and Display Ads To Sell Your House In A Single Weekend In some other recent posts I’ve been discussing selling your house in a weekend. Ok,...
