So the time has come.
For whatever reason, you have decided that you are going to sell your home.
The question is... which selling option is best for you and your specific situation.
Is selling to a real estate investor your best option? Or listing with an agent?
Each specific homeowner has their own distinct purpose to sell. This reason to sell will determine which selling option is the best choice.
In order for us to make a decision on which option to choose, we will have to know what these strategies have to offer, what we can expect, pros and cons and probably some advice on that specific choice.
So understand what you want to accomplish going into the sale in order to reach your goals. This will help you make the correct decision when considering all of your options to sell your home in Syracuse NY.
What Are My Other Options Besides Selling To A Real Estate Investor?
When it comes time to sell your home you really only have 3 true options that will allow you to cash out on your property. These 3 options are:
Selling the traditional route - listing with an agent
Selling on your own - or for sale by owner
Selling to a real estate investor
These are the only 3 options that we will touch on in detail today. Quickly, if you decide to sell to a real estate investor, you could possibly have various selling options. These options include:
These options may be appealing to some sellers, but today we only want to focus on the most popular strategies being used among common homeowners today.
1) Listing Your Home With A Real Estate Agent
The most popular and common way to sell a home currently is through a real estate agent. This is the route that most homeowners decide to go when selling their home. This may also be the only strategy that homeowners are aware of or feel comfortable with. So to give you a better understanding if this traditional vehicle is right for you, lets learn a little more about it.
Benefits Of Selling With A Real Estate Agent
Have access to the Multiple Listing Service (MLS)
Have knowledge of your local market & market conditions
They are professionally licensed
Capable of handing real estate negotiations
Know how to sell and handle buyers & their agents
Access to other professionals (inspectors, attorney's, moving companies, title companies, etc)
Ability to price your home right due to accurate data
Drawback of Selling With A Real Estate Agent
Home could potentially sit on the market for months
Will be asked to make costly repairs
Will accrue holding costs throughout the selling process
In the business to make a deal / may not always be looking out for your best interest
Pay 7% real estate commissions
Potential buyers always walking home (open house/ showings)
90% of realtors don't perform, so pick the right one
Maintain show ready home for months
Advice to Sell With a Real Estate Agent
When it comes to selling with a real estate agent it is very important to do your due diligence and hire the right professional. It can be very easy to speed up this process and simply hire based on a referral or family friend. The reality of this situation is that if you do not hire a great real estate agent, you risk experiencing several of the drawbacks that we discussed above. This blog post goes into detail on the process of hiring a real estate agent and how to make the right decision.
Timeline : This will depend on several variables such as the market conditions. home location, real estate agents ability and more. However we would suggest that you budget for at least 6 months of holding costs. These transactions can take anywhere from 3-12 months
What Homeowners Situation Will Benefit From Listing With An Agent
People who can afford to wait to sell
Home is in good/great shape or can make necessary repairs to sell
Have equity in home to cover real estate commissions
Looking to sell for full market value
Want minor involvement in the selling process
In a good/hot real estate market
2) Selling Your House On Your Own (FSBO)
Throughout the last decade we have seen a steady increase of homeowners who are "attempting" to sell their homes on their own. With access to several different resources such as zillow.com, trulia.com, forsalebyowner.com, and flat fee listing services, homeowners now feel they have a better chance of a successful sale. However, in our opinion this is by far the most difficult option to sell your home and if you do not understand real estate and the selling process this can be a real challenge. So to get a better understanding if selling for sale by owner is right for you and your family, lets discuss some of the details that this process entails.
Benefits Of Selling For Sale By Owner
Less Commissions - you will either pay no commissions or 3% to a buyers agent
Involvement throughout the whole process
You have control of each step - from the market analysis to closing
You have a great understanding of your property - know all features and amenities
Negatives Of Selling For Sale By Owner
Risk of selling your home for less than it is worth
You handle the whole transaction (both a pro and con)
Have to handle all negotiations (between buyer, inspectors, agents & attorneys)
Come up with a marketing plan / less home exposure
In charge of scheduling walk through / open houses
Set selling price / market analysis
Have to handle all paperwork involved in transaction
Need to educate yourself on the selling process
Advice To Sell For Sale By Owner
As we stated previously, selling for sale by owner is the most difficult strategy to implement. However, with that being said it is still very possible to accomplish a successful sale. If you do decide to choose this option, we recommend to educate yourself on the selling process first and foremost. This will give you a better understanding of what to expect and what each step of the process entails. The second step you need to take is to get an understanding of your local market conditions and put together a comparable market analysis to ensure that your are pricing your home properly. Accurately pricing your home will increase the odds of a successful sale tremendously, so take your time on this step and get it right. If you would like more information on this topic and how to successfully implement this strategy, this blog post does a good job of explaining each step in detail.
Timeline : This will truly depend on your knowledge of the selling process and how well you executed the plan you put together. If you price the home properly and market effectively you will sell your home much faster then if you fail to understand the process. Typically for sale by owners stay on the market longer than with an agent, so we suggest that you budget 6-12 months to sell using this strategy.
What Homeowners Situation Will Benefit From Selling FSBO
People who do not need to sell their home fast
Want to learn about the real estate selling process
Have little to no equity
Have experience with negotiations, paperwork, access to partners and are organized
3) Selling Your House Through A Real Estate Investor
The last option that we are going to talk about today is selling your house through a real estate investor. No matter what city that you live in, their will be independent home buyers or real estate investment firms who purchase homes. These investors will be looking to purchase your homes for a discount in order to either : fix them and up resell them, hold onto them as rental properties, or sell them to other investors who will invest in them. Selling to a real estate investor offers unique benefits to homeowners but is not meant for everyone. These specific benefits will only be advantageous to homeowners in distinct situations. So lets get into who this strategy will help and the pros and cons of choosing this option.
Benefits of Selling To A Real Estate Investor
Fast closings
Cash offers
No repairs
Sell house fast
Can suggest professional partners to work with to simplify the process
No inspections / contingencies
Will not have to pay closing costs
Sell your property as - is
They offer various payment options
Will reduce your time of sale - which in turn reduces holding costs
No real estate commissions
Drawbacks of Selling To A Real Estate Investor
Will be asked to sell below market value
Will possibly be asked to move sooner than expected
Investors are not required to have professional licenses
Advice When Selling To A Real Estate Investor
Just like when you decide to sell your home with a real estate agent, you will need to do your due diligence with this strategy also. Not all real estate investors are alike, so we suggest that you do a simple google search for "we buy houses CITY" or "sell my house fast CITY", this will give you numerous firms to choose from. Look through each of these firms websites and decide which business you feel most comfortable with. You will then contact the real estate investor and give them some details on your property and your specific situation. From their the real estate investor will be able to determine what they will be able to offer and which option will be best for your specific situation. This blog post goes into great detail on the process and what to expect when choosing to sell with a real estate investor.
Timeline: This is by far the best option if you are looking to sell your home fast. The timeline to sell your home using this strategy can be very quick. Since most investors will be purchasing your home in cash (not using banks or lenders) they have the funds on hand to close quickly. In most circumstances if the investor is interested in purchasing your home, you will have a offer on the home in 24-48 hours with the potential to close in as little as 14 days (in the state of NY, the timetable will be more like 3-4 weeks) .
What Homeowners Situation Will Benefit From Selling Through A Real Estate Investor
People who find themselves in a difficult financial situation
Going through or went through a divorce
Home needs a lot of repairs and are unwillingly to make costly changes
Job relocation
Own out of state resident
Tired of being a landlord
Moving out of state
Behind on taxes / mortgage and can't catch up
Need the money fast
Wrapping Up The Comparison Between Real Estate Investors And Other Selling Options
As we can see there a multiple selling strategies when it comes to your home and that each option offers different advantages depending on the homeowner's specific situation. Selling your home through a real estate investor is not meant for everyone. However, the unique benefits this option offers is appealing to many homeowners who find themselves in a difficult situation. We suggest that you evaluate all of your options and choose the one that will work best for you. No matter what option you choose, make sure that you do your due diligence, understand what you are getting yourself into and come up with a plan to execute it.
If you have any questions on the selling process, be sure to reach out to us. We offer free 30 minute consultations and would love to assist you, no matter what your current situation is.
With that being said, if you are looking to sell to a real estate investor, you can count on us to simplify the selling process and follow through with what we preach. The process is very simple and you can get started RIGHT NOW.
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