If you find yourself needing to sell your home, you might wonder which option is the best choice for you: to sell it by yourself (“for sale by owner”), use a real estate agency, or sell your house to a real estate investor. Which will get you the best price for your home? Which takes the longest, and which will take practically no time? What about the work you’ll have to put into the house, if any, before you sell? There is no one-size-fits-all option is the short answer regarding which option to choose, but this article will help you come to your own conclusion about which route is best for you.
Option 1: For Sale by Owner (FSBO)
Some people list their homes or commercial properties for sale by owner. This means you are selling it without a real estate agent. In addition to hanging for sale signs on the exterior of the property, you might take out newspaper ads and post the property online.
- You do not have to worry about realtor commissions and other possible fees they might charge for listing your home.
- There are no exclusivity contracts common with realtors.
- You are free to set your own prices and can raise or lower them as you see fit.
- You negotiate directly with interested buyers or the buyer’s agent.
- You could sell the home on land contract or as a rent-to-own property.
- It can take longer to sell your home than using one of the other two options. FSBO properties tend to stay on the market slightly longer than other for sale properties and could take as long as two years in some cases.
- You are responsible for ensuring the title company takes care of certain paperwork and other such tasks to prepare for closing.
- You may need to hire a real estate lawyer to ensure the sale of the property is handled correctly.
- The home is not part of the MLS (Multiple Listing Service) database, as this database is reserved for use by realtors, restate agencies, and other realty professionals.
- You are responsible for staging the home and showing it to potential buyers.
- You may have to make repairs to the property.
Option 2: Real Estate Agent
Your second option is to retain the services of a real estate agent to sell your house. Most realtors will require you to sign a contract requiring to use their services for a minimum of 6 months.
Real Estate Agent Pros
- A realtor will make recommendations on how to properly stage the home to attract buyers.
- Your home is listed in the MLS database so it gets more exposure than FSBO properties.
- Your realtor will take care of showing the home to potential buyers.
- Realtors will schedule and host open houses.
- Your realtor will typically be present at closing and assists with closing processes.
Real Estate Agent Cons
- You have to pay your realtor a commission based on the sales price of the home.
- You may be required to pay certain added costs at closing, like points and other fees.
- You may also need to retain a real estate lawyer to verify sales agreements are legally binding.
- You may have to pay for a home inspection and pest inspection prior to listing the home on the market.
- You can be required to make certain repairs to the home before you can sell it.
- It can take between six months to a year, sometimes longer, to sell the home.
Option 3: Real Estate Investor
The third option is to find people who buy houses as an investment. Unlike listing your home for sale using the other two option, real estate investors will just purchase the home directly. This can be a big advantage for people who do not have the six-plus months to wait to find a buyer.
Real Estate Investor Pros
- You do not need to make repairs to the home.
- You sell the home to the investor “as-is.”
- You can sell your house in as little as 7 days.
- There are no added commissions or fees.
- Most investors will also pay all closing costs.
- May be able to help you stop foreclosure by buying your home.
- Might be able to partner with you to sell your home with owner financing.
- Offers other value-added services.
Real Estate Investor Cons
- The purchase price is typically less compared to the other two options, since homes are purchased “as-is.”
- Selling to an investor may not necessarily be a good option in certain situations. For instance, if you have little equity in the home or owe more than it is currently worth, and we are not able to negotiate a discounted price with your lender, then you would be responsible for the difference between what we will pay and the balance owed on your mortgage.
What Are the Buying Criteria for Real Estate Investors?
The real estate investor buying criteria for residential and commercial properties in Texas can vary from one investor to the next. It largely depends on what types of homes and properties they are willing to invest in. Some only will buy homes while others only invest in commercial properties. Then there are still others, like us, here at EZ House Buyers, who will purchase both residential homes and commercial properties.
The general process of selling your home typically follows five simple steps:
- Find a real estate investor to buy your home.
- The investor will ask you questions about the property and do an evaluation to determine a fair value (offer price) for the property. Keep in mind if the home needs repairs these are deducted from the initial value to arrive at the offer price.
- You receive your no-hassle offer price showing the amount we will pay you in cash for your home.
- If you decide to proceed with the sale of your home, we arrange closing at a title company near you. The title company prepares the closing documents.
- The sale of your home is complete and you walk out with cash in hand, minus any payments to pay off your mortgage.
As you can see, selling your home to an investor is not a very difficult process. The above process is essentially the same for commercial properties, too.
Although, this method of selling homes is not right for everyone. It is important to understand there are three different options available to sell your home or commercial property, as well as the pros and cons for each one. This will help you make informed decisions and choose the process that works best for your situation.
When Is Using a Real Estate Investor Best?
Real estate investors normally buy houses that are considered subpar and in less than ideal condition. They could have outdated appliances, need major repair and/or renovation work, or other work to make the house sellable as a FSBO or through a realtor. If you do not have the money to invest to make updates to the home, but need to sell it, then you will want to talk to one of our real estate investors.
You should also consider using our real estate investors if time or urgency is a critical factor for selling the home, such as:
- You got a new job or are being relocated to a new area and need to sell the home quickly.
- You are going through a divorce and part of the settlement agreement is to sell the martial home and split the proceeds.
- You need to move your elderly parents into a retirement community or assisted living facility and need to sell their home to cover their new housing costs.
- There is a death in your immediate family and the home is no longer needed or needs to be sold as part of the processes to settle their estate.
- You have vacant rental homes and want to convert them into cash.
To find out how much we would be willing to purchase your home or commercial property for, or for further questions or information about our processes, please feel free to contact EZ House Buyers at 855.776.9793 today and request your free, no obligation cash offer! If you like our offer, we will work with you to sell your home for cash quickly and easily.