THE SCENARIO
My friend recently had the chance to sell a house they own, and they had two offers from prospective buyers.
In both situations, sales costs and commissions will be 6% of the purchase price.
Option 1: The first buyer wants to buy the house for $75,000 cash. After sales costs, my friend would walk away with $70,500.
Option 2: The second buyer wants to buy the house for $85,000. They'd pay my friend $5,000 today, and $925 per month for the next 154 months. This sort of financing is made easier by hiring a servicer, which charges $25 per month for handling the paperwork. After sales costs, my friend would have to bring $100 to the table to close the deal (yes, they'd actually have to
pay to sell their house). If you're interested, check out this ...
Read more...
