Investors Vs Agents
Investors Vs Agents
Should I sell my home to an
Investor or Real Estate Agent?
When it comes to selling your home, you may be wondering:
Can I sell my home without a Real Estate Agent?
People also start to consider things like:
How much to invest when preparing my house for the open market?
When making a decision as important as this, it’s good to establish what is important. What outcome is your goal. To some, it is maximizing proceeds from their property sales, normally achievable by listing with an agent on the open market. Assuming the property is already in ‘move-in’ condition and passes basic home inspection, this might be the best option.
On the other hand, the advantage of selling to an investor is that they purchase properties As-Is. Because they plan to invest in the property, they love purchasing outdated homes they can add value to. This means that you don’t need to do any painting, yardwork, or even clear out the garage. In contrast, selling with an agent will normally require you to invest money into the property. Maintenance repairs, upgrades, and additional ‘curb appeal might be necessary to maximize the value for listing the home on the open market.
Investors Are Ready To Buy
It’s no secret that ‘Time is Money’ in the real estate game. Investors can close on properties in as little as 10 days, using cash or hard money loans. Selling your home on the market, where a buyer will need an approved mortgage can take an average of 60 days, according to Sold.com. Additionally, there are other criteria that the majority of home buyers must meet. For example, a lender will want a home appraisal and inspection, and must approve the buyers credit score. Based on the results of the inspection, a number of repairs may be required before the end of the escrow period. This all takes time and reduces the profit of your properties’ sale. It’s not uncommon for deals to fall apart during this escrow period as well.
As investors, we bring our own cash and or hard money loans. Hard money is a type of lending often used in real estate investing. Hard money loans are also known as asset-based loans, bridge loans or STABBL loans (short-term asset-backed bridge loans) according to Forbes. Hard money loans are used for short-term financing, and the loans are always secured by an asset.
In contrast to agents, investors are the end buyers so they make the selling process hassle free. This means that your property won’t go on the market publicly. There won’t be a need to hold ‘Open House’ days, entertain many walkthroughs from various undecided buyers. Selling to an investor means they purchase ‘As-Is’ and the transaction is completed much faster. Additionally, there are no hidden fees, real estate fees, or commissions paid out by you going with an investor. Essentially, agents run on commissions, investors look to make money on the investment. The amount an investor gives you is the final price. The investor will wire the amount to the closing agent at a title company, who then wires you the funds once the paperwork is complete.
Agents Work On Commission
Whereas investors are ready to buy what you are selling, agents help you to sell you home. Therefore it should come as no surprise that an agent is only helping you so they can earn a commission. As stated by Redfin and many others, the average commission earned by Real Estate agents is 6%. But did you know you can sell your home directly to a buyer, essentially cutting out the middleman? In essence, Real estate agents use a slower process, while investors’ specialty are fast cash sales. Any agent can add your property to the MLS (Multiple Listing Service) for sale, but investors take the means of analyzing your property based on its condition and comparable properties in similar conditions.
While working with an agent can get you a higher offer, there are many hoops you will be required to jump through. If your property is not in ‘turn key’ condition, you should be prepared to invest in your property (making repairs and upgrades), multiple walkthroughs from buyers, and the property may sit on the market for a long period of time.
Is Home Solutions NW
an Investor, Broker, or Real Estate Agent?
The truth is our team can facilitate several different types of home sales. If you need to move fast or have a property that needs significant investment to earn the highest market value, we might recommend going the way of selling ‘As-Is’ for cash. However, if your property is in great condition and we know you may be able to get the most money going on the open market, we are able to help with that. Our team is fully equipped with an experienced network of agents who are ready to assist you.
In Conclusion
While it may not apply to every situation, if you go with an investor you can expect to close quickly on your property, receive a cash offer, and have a hassle free experience selling your home ‘As-Is’.
With this article, we hope that we’ve given you an in depth comparison. If you’re still wondering “Should I sell my home to a cash buyer, or list it with a real estate agent”, we would be happy to give you a free consultation. At Home Solutions NW, we handle all types of real estate transactions. From the investment side to the traditional route of listing with an agent. Although investing is our specialty, we have successfully helped many houses sell via the MLS.
We can competitively list your property or make a fair cash offer. Many of our clients aren’t sure which route is best for them, and that’s perfectly normal. We invite you to get in touch so we can help you assess your options with no obligation to work with us if you’re not ready to.
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