When deciding to sell your home you have two options. You can use the services of a real estate broker, or you can sell it yourself to a “We Buy Homes for Cash” company. Each scenario has its pros and cons, which we describe below. Every situation is different and we want to make sure you make the best decision possible. We’ve also outlined some key questions to ask yourself before making this big decision.
real estate agents Real estate agents are the best source to sell your property. It is a proven fact that real estate agents will get at least 10-20% more for your property than if you sold it yourself. It is also a proven fact that you will sell it 50% faster using the services of a local real estate agent. Since most agents are up to date with the latest trends, they will be able to guide you on what elements need to be addressed to get the maximum price for your home. With an agent who specializes in your neighborhood, they may have connections to buyers through colleagues and past clients that you don’t have access to. A network of agents is a very powerful tool to sell your house quickly. I recommend using larger co-op brokers like Berkshire Hathaway or Coldwell Banker Gundaker.
With any service provider it is a cost of doing business. The average expense for a real estate agent is 6-7% of the sales price of your home. For example, if you sell your house for $200,000, it will cost you between $12,000 and $14,000 at closing. If you decide to use a real estate professional to sell your property, you are most likely dealing with financed buyers, which means you may have to pay seller commissions ranging from $3,000 to $5,000. Selling to a financed buyer also means that once you sign a purchase contract, you typically have to wait 30-60 days to close. Let’s also not forget the cost of inspections. Most cities require the home to pass an occupancy inspection. When the city sends an inspector, there may be items that do not meet the city’s requirements and can be expensive to repair. The potential buyer will also hire a private inspector due to his own due diligence to see what the home may need. This can also be costly if the buyer has high demands before deciding to go ahead with the purchase. The extra money you earn by hiring a real estate professional can be paid off with the cost of broker fees and inspection fees.
We buy Houses Cash Companies. These companies often have a bad reputation in the area. They are often seen as scammers or dishonest people when in reality these companies can be very helpful to people. Like anything, there are pros and cons to taking this route. Since these ugly home buyers are investors, they won’t give you full price for your home. They typically buy property for 50 to 60 cents on the dollar.
But before you kick these guys out of your house, take a moment to think about the benefits of selling to a cash investor. Easy money! In most cases, these buyers have the cash to purchase the property immediately. Not only will it be a cash sale, but you won’t have to worry about paying any concessions to the seller. Many times they will even cover your closing costs, saving you additional money. These cash buyers will also save you those hefty realtor commissions. Since your property is for sale by owner, there will be no broker involved. No broker = NO FEES! Did I mention there will be no inspection? Since this is most likely an AS-IS cash sale, the buyer will not be bringing in a private or city inspector, which means they will not have to do any repairs to the property. So while you may not get full price for what you think your home is worth, you will save tens of thousands of dollars in fees and repairs. It makes the deal even sweeter knowing that they can close in as little as 7-10 days if necessary. The best part of selling to a cash investor is that you can leave unwanted items at the property so you can save even more money on moving expenses.
This is a big decision that should not be taken lightly. There are a few questions to ask yourself before deciding which route to take.
1. Does the house need repairs?
2. Is the house outdated by today’s standards and what do other similar houses look like?
3. Do I need to sell immediately?
4. Is the repair list too much for me right now?
5. Will a quick sale take the burden of managing this property off me?
If you answered yes to any of the questions above, then you’ll probably want to consider selling to a local real estate investor who has the cash to close immediately. A quick cash offer with no realtor’s fees, closing costs or significant moving expenses may be the best option for you. If the house has held up fairly well over the years and you can afford to stay in it for a while, your local real estate agent will be the best option for you and your bank account.
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