A seller with $370,000 in home value nets only $15,000 selling conventionally after realtor fees and mortgage payoff. With creative financing, they keep the property four years, pocket $31,000, and avoid showings and out-of-pocket costs while the home appreciates to $390,000.
Chapters
If they had that much equity in it, why didn't they just list conventionally?
Do the math. I gave him the math that I gave you guys last week when me and Mike went through it. Listen now, I'll just wing it. I bet you it's going to come close. He said to me, I don't know why he didn't find the $380 comp that me and Nick saw plain as day. He said, one down the street, I think sold for like $370,000. Okay. I said, so I typed an email back to him. Somewhere along these lines. And Carola saw it. Okay, Andrew, $370,000. Let me tell you what happens. 'Cause they're new, it's probably their first house. I said, you're gonna get, I think I used 96.5% of that price of $370,000. You're down to $357,050. And then you're gonna pay your realtor 6%. Now you're at $335,000. Well, you owe $320,000. That's 15 grand. That's if you sell it. That's kind of the tone of my email, a little nicer, but basically it was a reality check because I don't care what is on, here's what's going to happen. And you're not going to sell right away, maybe, who knows, right? So here's 31 grand if you can wait 4 years. And if you add up $319,000 and change and $31,000, I'm at like $351,000 before principal paydown. And Nick's going to bring that thing up, I mean, bare minimum $390,000, but he's thinking $20,000 more than that. So we're fine. We're more than fine. But they're fine too, right? Because they're not coming out of pocket. They're not guessing. They're not doing showings. They go, oh great, I can make Texas plans now. This is what— this is why we always say listen to what the seller's saying. That's all we did. And I coupled it with what Carola told me going there, because if I was there, I would have got the same vibe, right? And you put the two and two together and you go, okay, they kind of want to be gone even though they're current. They want to be gone.
