When selling your house, you have more than one option. And while the vast majority of homeowners choose to hire an agent and list on the MLS, other choices do exist. This includes selling off-market to cash house buyers.
The Most Common Way to Sell a House
Approximately 89 percent of homeowners hire a real estate agent to sell their homes. This method follows a very specific process. The homeowner typically prepares the house to be sold (making any obvious fixes or repairs that will come up during a purchase inspection). They then contact a real estate agent who works with them to set a fair price based on market comps. The property is then listed on the MLS, a sign is staked in the front yard, and showings and open houses follow. Offers come in, negotiations happen, and a contract is agreed upon.
Once a contract is reached, there’s an extensive due diligence period during which the buyer and their “team” have a chance to inspect all aspects of the house and title. If any issues are detected, further negotiations ensue. Once an addendum is signed, both parties wait until closing. This entire process can take several months from start to finish.
In situations where you have plenty of time to sell a house and there aren’t any complicated issues attached to the property, selling with an agent on the MLS can be a great option. But, you must know that it’s not the only option.
The Case for Selling Your House for Cash
Have you ever found yourself stopped at an intersection waiting at a red light when you suddenly notice a bright yellow sign that says, “Tom Will Buy Your House for Cash!” It doesn’t matter what city you’re in – and the name could be John, Uncle George, or Mary in your area – there are always cash buyers ready to purchase homes. Most of us think nothing of it. Once the light turns green, we forget about the sign and move on with our lives.
But maybe you should spend more time considering the benefits of working with a cash buyer instead of an agent the next time you sell your house. Here are a few of them:
Quick Cash
By the time you get your house prepped for listing, you find an agent, and all of the back and forth negotiations take place, it can take 60 to 90 days to reach the closing table and have cash in hand. If you need money quickly, you might not have that kind of time. When selling to a cash investor, you might be able to close in as few as 7 to 14 days. That’s a huge difference!
Fewer Fees
When selling a house the traditional way, you’re going to pay a six percent commission to the agents involved. You’ll also likely have to make some repairs and other seller concessions that amount to another two to three percent of the home’s sale price. That means you’re giving away nearly nine percent straight off the top. On a $300,000 house, that’s $27,000 you’ll never see. With a cash buyer, there are almost no fees or closing costs.
No Repairs
When a cash buyer puts in an offer on your home, they’re already accounting for repairs. Best of all, you don’t have to do any of them yourself (or hire anyone to do them). The investor buys the house as-is and you can stop worrying about that faulty circuit breaker or leaky faucet.
Discreet
Perhaps you’re going through a personal situation that you don’t necessarily want a lot of people to know about. Whether it’s a divorce, health issue, financial problems, or a death in the family, sometimes there’s a desire to keep things close to the vest so that your family can deal with them in a personal way. Unfortunately, sticking a bright for-sale sign in the front yard is sure to get the neighbors buzzing.
Adding it All Up
For some homeowners, hiring a real estate agent and putting the property on the MLS makes perfect sense. But if you’re in a situation where you need quick cash, don’t want to deal with repairs, and/or are looking for a less complicated and more discreet option, selling to a cash investor is a much better choice. Weigh your options and choose accordingly!
