Darren Brown:
Hello, I’m Darren Brown, owner of Darren Buys Homes Cash. As a veteran-owned business with over 30 years of experience right here in Sacramento, we specialize in purchasing challenging properties. Today, I want to help you determine if selling your home to a cash investor like us makes financial sense for your specific situation.
Let me clarify that the scenario we’re discussing today isn’t for move-in ready, fully remodeled homes. If your property is already updated, working with a realtor or service like Opendoor might be your best option. However, if you’re dealing with an outdated home, tenant issues, inherited property, probate situations, or homes from the 1950s-60s in areas like Florin or South Sacramento, our approach might be perfect for you.
When considering a cash sale to an investor like us, two critical factors come into play: time and money. Do you have several months to handle tenant relocations, complete renovations, list the property, and wait for closing? Do you have funds available for remodeling? Most homes that haven’t been updated in the past 15 years will require significant renovation to fetch top dollar in today’s market.
Let’s examine some numbers that you can adjust to fit your own situation. We’ve prepared some scenarios to help illustrate whether selling to a cash buyer makes sense for you.
In scenario one, you have both time and money to invest. With a potential resale value of $350,000, a mortgage of $200,000, renovation costs around $50,000, realtor commissions and title fees of $20,000, plus roughly $10,000 in buyer closing costs. Remember, Sacramento is currently a buyer’s market, so these concessions are often necessary. You’ll also face ongoing mortgage payments and utilities during the 5-6 month selling period while repairs are completed and the home is marketed.
In this first scenario, your total investment reaches about $295,000. Selling at $350,000 leaves you with approximately $65,000 after 5-6 months. This doesn’t account for capital gains taxes you’ll owe on that profit. Additionally, if you’re dealing with tenant evictions or vacancies without rental income during this period, your costs could increase substantially.
In scenario two, you have time but no renovation funds. Your mortgage remains $200,000, you’re selling as-is, still paying approximately $20,000 in commissions and title fees, about $10,000 in buyer closing costs, plus those ongoing mortgage payments and property expenses during the listing period.
With total costs around $245,000, your selling price would be lower – closer to $285,000 instead of $350,000 – because you haven’t renovated the property to maximize its value. This scenario nets you about $40,000 after 5-6 months, compared to the $65,000 in the first scenario. You can adjust these numbers based on your specific property situation.
The final scenario is selling directly to an investor like us. This option is ideal when you lack both time and money for renovations, or when dealing with challenging tenant situations. As an A+ BBB-rated company with expertise in tenant-occupied properties and eviction laws, we handle everything. You pay no commissions, no title fees, no buyer closing costs, and you immediately eliminate ongoing mortgage and property expenses. With a $200,000 mortgage and a $230,000 cash offer, you walk away with $30,000 in just 10 days, compared to waiting 5-6 months for the other options. Plus, you’ll face minimal capital gains issues and completely avoid tenant headaches.
I hope this helps you determine if selling to a trusted, local cash buyer is the right move for your situation. You can reach us at Darrenbuyshomescash.com or call me directly at 916-300-7962. As a veteran-owned business deeply connected to the Sacramento community, we’re ready to offer you a straightforward, hassle-free solution.
WE SPECIALIZE IN BUYING SQUATTER AND TENANT OCCUPIED PROPERTIES, FIXERS, MOBILE HOMES AND HELPING HOMEOWNERS EXPERIENCING DISTRESS & STRESS. OUR PRIMARY SERVICE AREAS INCLUDE: SACRAMENTO, SOUTH SACRAMENTO, OAK PARK, FLORIN AREA, DEL PASO HEIGHTS, NORTH HIGHLANDS, CARMICHAEL, CITRUS HEIGHTS AND ORANGEVALE.