Just learned that quick sales actually lose me money 60% of the time

I was looking at my sales records from last month and ran the numbers with a spreadsheet my buddy made. Found out that every time I took a fast cash offer under market value, I lost about $800 on average. I read this article from a real estate blog called FlipStats that broke down how those quick cash deals eat into profit margins way more than people think. It said the average person loses 15-20% off what they could get if they just waited two extra weeks. I always thought speed was everything but now I'm wondering... has anyone else crunched the numbers on their own fast sales?

3 comments

3 Comments

sandrat241mo agoTop Commenter

My cousin Jerry took a fast cash offer on his house last August and lost $5,200 compared to what the neighbor got three weeks later for the exact same floor plan. He said he needed the money quick for a down payment on a new place, but that quick cash basically turned into a donation to some investor who flipped it in a month. I ran the same numbers on my last flip and found waiting two weeks would have netted me $1,100 more. Speed is just expensive these days apparently.

margaret_kelly551mo ago

@margaret_kelly55 Fast pay is just slow money for investors.

robert_anderson691mo ago

Wait, you really think fast pay is slow money for investors? I used to think speed was everything too, but @sandrat24's story about her cousin losing five grand changed my mind.