Why go through all the hassle and turmoil of putting your house on the open market, when there are buyers ready and willing to take the property off your hands for cash immediately?

The answer is simple: anyone who buys that way must give you a wholesale price. Unless they can pretty much count on making a profit when they re-sell your property at retail later, there's no point in buying your place at all.

Some of the buy-now investor's costs:

• Lost interest that could be earned by the immediate cash they give you--or interest they're paying to borrow that money.
• Property taxes, insurance and utilities on the place until it's re-sold.
• Fix-up expenses, repairs or redecorating to polish it for the market.
• Possible commission to an agent who provides the eventual buyer.
• Possible points to the buyer's lending institution, to enable the buyer to obtain a loan.
• Legal costs of buying, legal costs of selling.

Add in something for emergencies, and something for profit (else why buy in the first place?).

What it all adds up to is a substantial discount -- perhaps 25 or 30 percent -- from fair market value. That's what you'll be offered.

If you are under pressure and need an immediate sale, it may be worth accepting the offer. But otherwise --

Your home is worth much more to someone who's going to live in it. Put it on the open market in the normal way, and just have patience.

Published: June 3, 1999

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