If you want to sell your house the 1st thing people will do is call a local real estate agent. This has it pros and cons and I am about you show you what it would be like working with a Real Estate Investor vs a Real Estate Agent.
When in comes to a traditional sale when the market is doing well, the average sale takes 45-60 days not to mention the time to close on the property once you have an offer 30 days in escrow. This could process could be damaging to some people especially when there is a reason they need to sell quickly as life happens people go through financial changes, loosing a loved one or downsizing. With a real estate investor they have the ability to close quickly as they pay for the property with cash which typically they can close within 7-14 days. Why is cash so much quicker? Because with a lender they need to conduct inspections and appraisals to make sure that there money is going to be a good investment with that property if ever the buyer defaults there loan the lender wants to know that they could get their money back if they need to sell it. So they no only have to make sure the property is in good condition but the purchase price is in line with the market value.
WHAT IS “AS IS”
When someone purchases as is with a real estate investor vs a real estate agent this could also affect the price of a traditional sale if the property is not looking at it’s best. If after the house inspection there is anything that needs repair this could be a bargaining chip for your buyer. Often times the realtor will negotiate a credit to the buyer if the roof needs repair or finds water damager that you were not expecting. This could also cause further prices reduction on your property roof replacement could cost on average from $10,000 – $20,000 depending on what type of roof you have.
SAVING MONEY/NO COMMISIONS
Let’s say that you have a property listed for $350,000 there are a whole list of fees that are going to cut into your bottom line. Agent fees are typically 6%, 3% goes to listing agent and 3% goes to buyers agent that’s a $21,000 cost. Not to mention there are closing costs typically 1.5%, repair & retrofit costs 1.5% that’s an additional $10,5000 total of aprox $31,500 which comes out of the sellers pocket. With a Real Estate Investor there are no agent commissions, no repairs as they take the property in “as is” condition and they will usually pay for the closing costs themselves.
NO GUARANTEE IT WILL SELL
Choosing the right buyer is very important as choosing the wrong buyer could end up in your property falling out of escrow. There are a number of reasons your property could fall out of escrow. If the appraised value falls short of the offer price, they buyers sometimes anticipate this an use it as a tactic to get a lower price on your house. Or during inspection they could put something in there report. Let’s say that you have a really excited buyer, they say that they are willing to do anything to buy your property because they love it, it’s been updated and remolded and it looks beautiful. Once they get into escrow they could choose not to buy it for any reason, inspection, apprised value is lower than expected or meddling parents get involved and sway the buyer not to buy. This could be damaging as the inspections and appraisals stay with your property for the next buyer.
WHEN TO SELL WITH A REAL ESTATE AGENT
If you have the time to sell and your house doesn’t need repairs selling to a cash buyer may not be the right option. If your house has been fully upgraded and remolded and looks at it’s best then selling your property on the open market with a real estate agent for the highest market value is possible. A cash price off might be lower than what you would get for a fully remolded house because it needs repairs.
CASH BUYERS DON’T NEED A LICENSE
When buying a house for cash you don’t need a license as Real Estate Investors buy directly from the homeowner. Unfortunately when facing foreclosure & bankruptcy people are desperate to sell and get out of their situation and could find people would take advantage. When we buy houses from homeowners we use make sure to use a 3rd party escrow to close the sale and a title company. When you are considering selling your home for cash make sure to do check review and interview the buyer before making any commitments.