What Is The Best Way For Me To Sell My House?
Selling your house is a major step. Whether it is the home you live in, a home you inherited, or a secondary home, you have many options in which path you want to take when you sell it. The two most common ways of selling your house is using a listing agent who will post the house on the MLS for you, or electing to sell the house to an investor.
There is no right or wrong answer. And depending on your particular situation, one option may make more sense for your situation. There are many advantages to selling your home with an agent on the open market, and there are advantages to selling your directly to an investor. This article will help guide you into what may be your best option!
What Are The Benefits Of Selling My House To An Investor?
You Can Sell “As-Is”
When these companies advertise they buy your home as-is, they truly mean it. Credible real estate investment companies will not ask the homeowner for any repairs. Whether the house has a roof leak, mold damage, foundation issues, etc. they will purchase the home in its current condition. Selling “as-is” means you will not be asked to make any repairs to the house prior to closing. Make sure to do your research on each of these companies to ensure they have a great reputation for closing the deal with no repairs.
Cash offers eliminate the need for lenders and appraisers. When someone purchases a home with a mortgage, the loan has to go through underwriting. Part of the underwriting process includes an appraisal. Depending on the availability of the appraisers, this could take several weeks to complete. When you sell your home for cash, it eliminates several “middle-men” (banks, appraisers, underwriters).
No Commission Fees
Realtors do not work for free! When you hire a real estate agent to sell your house, they typically charge up to 6% of the sales price. To give you an idea of just how costly that can be, 6% on a $200,000 sale is $12,000. That is $12,000 that is immediately taken from your proceeds at closing.
No Closing Costs
Most buyers request some type of closing credit in addition to your standard closing costs. Depending on your offers, most traditional real estate contracts will ask for an average of 2% for closing costs. While we are still doing the math, that is $4,000 on a $200,000 Sale. When you sell to a real estate investor, most will agree to cover all closing costs for you.
This may be the biggest benefit to selling your house to a we buy houses company. Unlike a traditional sale, there is no cleaning, no showing appointments for multiple people, and no nerves during appraisal or inspection periods. You can truly sell your house as-is. The length it takes to close a traditional real estate sale creates several hurdles that must be overcome to get to the closing table. When you sell to an investor, closings typically happen quick since these are all cash transactions. In addition, the amount you agree to is exactly the amount you will get at closing since there is no commission fees, repair costs, or closing costs.
What Are The Advantages To Using An Agent
Opportunity For A Bidding War
Real estate climates fluctuate just like anything else. When demand for houses exceeds the current supply, many homes receive multiple offers. Although this is considered a missed opportunity, bidding wars can create a high level of stress, even for the seller. In many cases, the price of the home is bid up so high, it fails to meet the appraisal, which results in the deal falling through. But, the possibility of getting someone to make an offer that includes an escalation clause is a possibility. An escalation clause is where the buyer agrees to cover any appraisal gap up to a certain amount.
Receive Offers At Or Above Market Value
Listing your house on the MLS means you are more than likely going to get at or above market value offers on your house. Real estate investors need to have the ability rehab the home and still make a profit on the future sale. In order to accomplish this, they have to purchase the home at a discount. This discount isn’t substantial, and any company that operates ethically will show you the numbers they come up with for future value and repairs.
You Have Someone To Do The Negotiating For You
Using an agent means that they will do all of the negotiating for you on your behalf. Many people do not enjoy negotiations. A great agent will take care of this for you and will advocate for you on your behalf. It is critical that you interview any potential agents prior to signing a contract and make sure they are comfortable performing negotiations for you.
Agents pay for the rights to use the MLS. Most real estate brokers use this as well. When an agent uses the MLS, it puts your listing across multiple platforms. Multiple platforms means that you have more exposure to your listing.