“Why you must understand the “Rule of 9” before buying or selling a home…”

Posted on Posted in Real Cash Secrets

Almost anywhere in the U.S., when you sell a home it will cost you about “9%” including the commissions paid to the realtor, closing costs, escrow and moving expenses etc.

Keep in mind; these costs do not include maintenance of the property.

Because of the ‘rule of 9’ you are likely to be better off renting if you only plan to stay in a home for 2 years.

Even though many homeowners count on the mortgage interest deduction when factoring their return on investment, it’s often not as much as they expected.

Let’s say you buy a home for $200,000 and sell at 24 months, using the rule of 9, your costs as outlined above will be about $18,000.00.

Unless your home appreciated in value by at least 9%, you will likely lose money.

Realtors will often try and convince you to lower the price so your property will move faster.

But remember, for every $10,000 you lower the price, it only costs the realtor about $300 in commissions.

This is because their commission is 3% of the selling price.

So if your home appreciates to $220,000, but your realtor convinces you to sell at $210,000, you’ll lose about $9,000 on your investment.

Remember the “rule of 9” anytime you are looking to buy or sell a home.

It can either help you make money or come back to haunt you.


NOTE: This report was excerpted from the “Real Cash Secrets” Home Study Course.

To learn more, click below:

http://zodipublishing.com/real-cash-secrets-home-study-course-full-description/

Leave a Reply

Your email address will not be published. Required fields are marked *

5 + 19 =