When you have plans to put your house in the market, your first thought is probably to list your property with a realtor. However, this strategy can often be more expensive and time-consuming than you realize. Fortunately, you have other options aside from listing your property with a realtor. There’s selling your property to a friend, family, or a neighbor and listing your property to websites such as Zillow or even Craigslist. Also, sellers turn to home investors when they want a fast cash transaction without making any renovations to your house and skipping the real estate agent commissions.
Selling Your House the Traditional Way
Before you sell your home, you will have to make the required improvements and invest time money in repairs and renovations. Taking these steps will help add to your property’s value so you can attract buyers. Otherwise, your property may lose its attractiveness and value and get stuck on the market for a long time – all the while you’re paying for utilities, home insurance, and mortgage. Once you do get an offer, your potential buyer is not going to be giving you your full asking price, guaranteed. The buyer will most likely request for inspection or make demands such as doing more upgrades and making further repairs. Even so, there’s still a possibility of the deal won’t come to fruition because of other issues.
The Home Investor Way
Not a lot of people are even aware that selling their home to home investors is an option; however, it’s worth considering. This is especially true if you want to sell your home quickly. Here are the other benefits of selling your property to an investor.
Working with a real estate agent can be time-consuming. The average listing agreement is six months, and this involves marketing through open houses and advertising. When you find a potential buyer, they will most likely need to get qualified for financing, which is another delay and can cause the transaction to fall through. On the other hand, private buyers often make the sale dependent on whether or not your property will pass several elaborate home inspections. This may be an issue for older homes or a fixer-upper property.
An investor is always ready to buy with cash in hand. This is a massive advantage to you, especially if you’re looking to sell as quickly as possible. Home investors will usually offer a cash offer within a certain period. In many cases, the home sellers can have the money in their bank only a couple days later.
No More Investments
If you’re selling your house traditionally, chances are the potential buyer expects the property in tip-top and move-in ready state. You may have to pay to install a brand new roof, replace the flooring, paint the interiors and exteriors, spruce up the landscaping, and take care of endless and expensive improvements just so you wouldn’t have to worry about losing the sale.
With an investor, you can sell your property in any condition, as-is; you don’t have to invest time and money on improving it to make it marketable. Additionally, since home investors purchase properties as-is, you wouldn’t have to worry about employing a cleaning services provider. You can simply take everything you’d like to keep with you and leave the rest of the items in the house. If there are necessary repairs that can’t be put off, the price is adjusted accordingly.
No Agent Fees
Real estate agents don’t work for free. Working with a real estate agent to sell your property will cost you a flat fee or a commission of the selling price based on the percentage you agreed upon, which is usually six percent. For example, if your house is on the market for $300,000, your real estate agent stands to make $18,000 from the deal. The commission real estate agents get holds true no matter how much effort they put into selling your property.
On the other hand, if you’re considering selling your home to a private buyer on your own, there are complex factors you need to consider.
First, you’d have to conduct market research. You will also need to implement a marketing tactic, vet potential buyers, and prepare all the necessary paperwork.
With home investors, there are are no commissions or hidden fees. It’s that simple.