|Time To Sell||~6-12 months.||~8-12+months||~15days|
|Agent Fees||$18,000.00||$9,000.00||$ -|
|Closing Costs||$6000.00-$8000.00||$6000.00-$8000.00||$ -|
|Holding Costs (utilities,taxes,mortgage etc..) calculated for 12 months||$19,452.00||$19,452.00||$ -|
|Home inspection contingencies||yes||yes||no|
|You need to market your house||no||yes||no|
|You need to paperwork to sell your house||no||yes||no|
We are a group of reputed real estate investors and brokers with more than 30 years of experience in this business. We understand real estate and the needs of the seller like you. Our whole buying process is confidential and hassle free, offering you the top dollars for your property; saving you money in long run. Following comparable will provide you an idea why selling to use makes more sense for many home sellers.
We understand that you need to sell your house and we also understand that it can be an overwhelming process for you. Selling in a market like today’s can sometimes be very frustrating, expensive and time consuming. With so much competition with other houses that are competing with your house to sell, it gives buyers out there more choices and sometime causes sellers to wait 3, 6, 12+ months to sell their house for a price the seller feels fair.
For a homeowner, essentially there are 3 choices to sell the house. We want to take this time to explain the process that is involved with these choices and the Pros/Cons associated with each choice so that you can make an informed decision on how to sell your house.
Working with a real-estate agent is the most popular and the traditional way to sell a house today. If a house owner decides to list the house in the market with a licensed real estate agent, you will have to go thru the following process.
Decide a real-estate broker company you want to list your house with, a few examples of these broker companies are Keller Williams, Weichert Realtors etc. It's important to choose from a right broker because some brokers are more popular in some areas than others and many prospective buyers work with them. This gives a better chance to get an offer on your house.
Contact an agent from the broker company, make sure that the agent is experienced dealing with complexities involved with a real estate transaction.
Once you decide a real-estate agent you want to work with, s/he will visit your house to determine what they feel it may sell for.
Real-estate agent then discuss that the price they want to put your house on sell for, if you agree you move to the next step.
Real-estate agent then prepares a listing agreement that you will need to sign, this agreement is valid for normally 6 months where the agent exclusively represent you and sell your property.
As a part of signing the contract you will be asked to disclose the age and condition of house, age of the roof, appliances etc.
Agent now lists the property on MLS (Multiple Listing Service), markets it. At this point the buyers will start seeing your house as available in the market for sale. If and when a buyer is interested in your house, s/he will make an appointment with the real-estate agent and schedule a house showing. Note that the house must show well to sell well. Curb appeal is important. --note that you have to fix up house and costs*******
If the buyer likes your house, s/he makes an offer on your house. The real-estate agent takes care of the negotiation and the paperwork required to complete the transaction. In return the agents charge their fee which is usually a total of 6% of the value of the house you agreed to sell it for. 3% goes to your real-estate agent and another 3% goes to the real-estate agent representing the buyer.
Timeline this route takes to sell the house: This route is usually slower than selling your house thru a real-estate agent, it's simply because real-estate agents are trained and experienced in selling houses, they have network of people/other agents and utilize that network to market your house. When listing your house in the market FSBO, we suggest you should expect at least 6 -12+ months before the house is really sold.
How much it costs you to sell the house: If you decide to pay for buyer's agent fee (usually 3%), for $300,000.00 house its $9000.00. If you pay for the buyers closing costs, it will run into thousands of dollars. We should estimate the total cost to be around $18,000.00 to $20,000.00. Plus Carrying costs, fix-up costs.
Investor buyers don't ask you to fix anything in the house, most offers are on as-is basis.
Timeline this route takes to sell the house: This is the quickest and most hassle free process to sell your house. Since the offer from an investor is not contingent upon anything, no fixups are needed, no loans to get approved. Investor pay in cash. The process takes anywhere from 7-30 days (many times investors can close within 7 days if you need it to). This is the option many sellers go with when they need to sell their house fast with little hassle.
This immediately eliminates thousands of dollars in costs that you would have to pay when working with an agent or selling the FSBO route.
The main cost with working when a real estate investor is the fact that an investor don't pay full retail value for a house. As any other business, investors invest money to turn profits. They usually look to buy houses at discounts and sell them on small profits.
This does not necessarily means a loss to the seller. For many people selling at a lower price makes sense in return for the elimination of commissions, closing costs, fee and carrying costs. These expenses can add up quickly. Take the following example.
House value is $300,000.00
Your monthly mortgage payment (including taxes and house insurance) is $2,000.00 Let's say it takes 9 months to sell your house using real estate agent route.
Real Estate commissions: $18,000.00
Closing costs: ~$10,000.00
Carrying costs: $18,000.00 (you know that most of our mortgage payments contain the interest going directly to bank)
Total approximate expense: $46,000.00
Compare it selling the house in 7-10 days in cash in discount.
Just like the above mentioned approaches, there are drawbacks here too. The main drawback here to may be that you are selling at a discount in return for the speed and convenience that a real estate investor is able to offer. If you’re able to work with an agent and the agent is able to sell your house for full market value within 3 months (and you can wait 3 months)... you may be ahead going that route. But, if it takes longer than 3 months for the agent to sell it... the “carrying” costs we mentioned earlier start to eat away at any gains you may have working with an agent. Selling To A Real Estate Investor This strategy is mainly for people who are willing to sacrifice a bit on the sales price in exchange for a fast convenient sale with no hassles. If you need to sell quickly (days or weeks rather than months), investors can close quickly. If you don’t want to hassle with repairs or cleaning up the house, investors actually will take care of that for you. 6 Investors are able to get a good house at a fair price that leaves them room for a profit... and you are able to get out from under the house and the payment and can move on more quickly.
Conclusion In the end, there’s no one-size fits all solution. If you have lots of time and aren’t in a hurry to sell... seriously consider going the FSBO route first to see if you get any bites. Then, if you still have lots of time (you don’t care if it takes longer than 6 months to sell) you may work with an agent. However if you need or want to sell quickly.... maybe you’re in foreclosure, or you inherited the house and don’t want to mess with the hassle, or you’ve moving, or you already bought a new house and can’t handle two payments anymore, or any other situation that calls for a fast and no hassle sale... working with a local real estate investor may be the way to go. Just like with anything, do your research and make sure you trust the investor you’re working with and make sure the actual closing is done at a reputable place like a title company. The vast majority of real estate investors out there are honest and do great business. Work with those ones, ask for references if you’d like, and trust your gut. Good luck on the sale of your house! We hope this guide will help you make sense of your options when selling a house and will help you move forward with what makes sense for you and your goals. In some instances working with a reputable agent is the best route... and in some cases working with a reputable investor is the best route. Weigh your options... and good luck! :-) If you have questions about working with a real estate investor to evaluate how much your home is worth and what an investor will pay for your house... return to the website where you got this guide and contact us. We are a real estate investment company that focuses on helping homeowners reach their goals… whether we buy your house or not… we’re on your side. We look forward to helping you as a resource and working with you on the sale of your home if there’s a fit. - Your local real estate investment company. PS - If you’re still not sure what option is right for you... use this quick little test. Can you wait 6 months to sell your house? If the answer is no or “I’m not sure”... contact us and 7 we’ll give you a no obligation offer on your home. Take our offer, look it over, pass it by people you trust, and take your time to decide. There’s no pressure. If you feel that helps you reach your goals... great. We can close quickly, no fees, no commissions... and we’ll even pay closing costs. Pretty darn painless. Just connect with us to get the ball rolling.