So, you need to sell your house. Selling in a market like today’s can sometimes be frustrating. With so many other houses on the market it gives buyers out there more choices… and often times sellers can wait 3, 6, 12+ months to sell their house for a price they feel is fair.
This brief guide will walk you through the decision process to help you decide what’s best for you. Do you go the traditional route and work with a real estate agent, sell it yourself (For Sale By Owner), or work with a real estate investment company?
Each of these strategies have different pros and cons and each one will help you reach a different goal. It’s for you to really look and see what you need to accomplish with the sale of your house… then make the decision that helps you get there.
The 3 Options For Selling Your House
Like I mentioned above, there are 3 real options for you in selling your house. I’ll dive into those 3 options a bit more below and spell out what’s great about each… the drawbacks of each… and who each option is really going to help the most.
Option 3: Selling Your House To A Real Estate Investor:
A third option for selling your house is to work with a local real estate investor who buys houses. In virtually every city there are independent real estate investors who buy houses and either: fix them up and sell them, hold onto them as a rental property, or sell them to other real estate investors who will hold them as rental properties. Every area has reputable investors who you can contact to work with.
The general process of selling your house to a real estate investor is…
- You connect with the investor and submit your information about your house and situation to them.
- Investor will evaluate the house, come up with a value for it, determine if any repairs are needed, find out what your goals are, and make an offer that fits their buying criteria and helps you reach your goals.
- You look at the offer and decide if it works for you.
- If it’s a fit, closing happens at a title company and the title company prepares the documents… the investor buys with all cash so it’s a quick close and you get your cash quickly.
- The house sale is complete.
The process can take from 7-30 days (many times investors can close within 7 days if you need it to). It is the option that many sellers go with when they need to sell their house fast with little hassle.
The cost to sell your house to a real estate investor is very low. There are no commissions or fees and often times the investor will actually pay for 100% of the closing costs as well. This immediately eliminates thousands in costs that you would have to pay when working with an agent or selling the FSBO route.
The main cost with working with a real estate investor is the fact that an investor can’t pay full retail value for a house. They usually look to buy houses at discounts that allow for them of course to turn a small profit on the deal… just like any other business turns a profit. But, for many people… selling at a lower price makes sense in return for the elimination of commissions and fee and the much faster timeline to sell your house.
What many people don’t take into consideration are the “carrying” costs when selling a house with an agent or the FSBO route. Carrying costs are all of the costs associated with owning and maintaining the house. The mortgage payment, taxes, insurance, utilities, HOA fees, etc. These can really add up. If your mortgage payment (including taxes and insurance) is $1,500… and you work with an agent and it takes them 8 months to sell the house at full market value… that means during the 8 months you paid $12,000 in payments on that house (which we all know most of your mortgage payment is interest going straight to the bank). Plus, you’ll be paying the commissions, etc. So in the end, you could net in your pocket less if it takes a long time to sell your house with an agent for full retail value… versus selling very quickly to an investor at a discount today.
A similar situation we’re all familiar with is trading in your car to the dealership when you buy a new one. Most people trade in their car to the dealership to eliminate hassle and headache. We all know the dealership is paying a discounted rate and will turn around and sell your car for a markup and make a profit. But, because of the convenience and speed… it makes sense for you to sell it for less money in return for not having to worry about taking it home, spending money on marketing it, and trying to sell it yourself.
The timeline to sell your house when working with a real estate investor can be very quick. Since investors buy with all cash (they don’t use conventional banks which take more time)… they can close very quickly. Many times you can have an offer on your house in less than 48 hours… and can close in less than 7 days from the time you accept it (sometimes it may take a week or two).
It’s less headache, you can have your house sold this time next week if you wanted to, no fees or commissions, many times the investor will pay all closing costs as well, and the closing happens at a title company just like with an agent… making sure it’s done correctly. In addition, most investors will buy your house “as-is” and won’t require you to repair anything, clean anything up, or even remove everything from the house. They’ll pay for those costs themselves after the sale is closed.
Just like with anything, there are drawbacks. The main drawback 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.
Who Selling To A Real Estate Investor Is For?
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. 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.
In the end, there’s no one-size fit’s 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! 🙂
P.S. – 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 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.
Jack BUYS Houses – Orlando is Central Florida’s premier house buying company. We pay CASH for our properties, which allows us to close in as little as 7 days. We purchase all types of houses, As-Is and in any condition, so there’s no need to fix up the property. If you or someone you know needs to sell their house quickly for any reason, please visit our website or CALL 407-307-3245 NOW and say, “I WANT A CASH OFFER FOR MY HOUSE“, and you will get one in 24 hours, GUARANTEED!!