Price vs. Terms?

What is Price vs. Terms? Your Choice

How to increase the equity you get when selling

What is equity?

The equity you own in your real property is the price you accept, less what you owe, and less the costs of finding and selling to your buyer.

Want a higher sales price?

If you want a higher sales price, consider waiting for some of your equity. That means receiving a lump sum at a later date or getting paid in monthly installments. 

Normally the term of a sale is you get all your equity in cash at closing. If you don’t, and you get some (or all) of your equity after closing, then this is known as selling on terms. 

Want the best terms?

If your terms to sell are all cash, you get one price, the lowest price. Sometimes it is not as high as you want or need. But the benefit is you get your cash at closing to spend or invest. 

Just like a used car dealer, you can ask for and get a higher sales price if you’re willing to take monthly payments. It allows a car buyer to purchase, own, and begin driving the car with less money upfront. It works the same when selling real estate. 

Also, the more attractive the price or terms you’re willing to extend to your buyer, the quicker your property will sell. 

The best term for the sale for you is to get all cash for your equity. Buy your buyer decides on what price is acceptable if you get all cash. 

If your asking price is unacceptable to the buyer, you can still get it by being flexible on when you receive your money. The longer you can wait, the higher price you can get, even enjoying a sales price above market value. 

Indianapolis, Indiana, USA skyline on the White River

What’s more important to you?

We can always pay all cash for your property, but it will be at our price. We can always pay you any price you want, but it will be on our terms. If the price you are asking is attractive enough to us, we can pay all cash at closing. If not, we will run our numbers and tell you what options you have where we can get you your price, or get you all cash at closing.

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