There are several ways to sell a house. Most likely everyone is aware of the traditional way of selling a house and that would be using a realtor to sell the house. The realtor gets the task of marketing to the public, showing the house to potential buyers, doing the paperwork, getting the buyer qualified with a bank, and helping with the final closing of the house at the title company.
There is also a more direct way of selling a house. This approach is For Sale By Owner, or FSBO, where the owner of the house does everything, advertises the house for sale, do all the marketing, all the phone answering, all the showings, and finally goes to closing to be paid. The owner also may have to deal with inspections, bank pending qualifications, etc, etc.
But did you know there is a better, or third way, of selling a house? This third way of selling a house involves using a Real Estate Investor. A real estate investor is an entity that will buy, or invest, in the house and release the homeowner of all the mundane tasks of selling their property. The investor buys the house as is, regardless of condition, and closes very quickly.
The Wikipedia definition of a real estate investor states,”Real estate investing involves the purchase, management, and sale or rental of real estate for profit. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor.”
The homeowner can save thousands of dollars by selling to an investor. Why? First of all, an Investor doesn’t charge the homeowner a 6% commission to market and sell the house. An investor will normally pay most, if not all, of the closing costs, which also can add up to several thousand dollars. This is why selling to an investor will usually net the homeowner several thousand dollars more.
Using a realtor is also a time-consuming approach. It also has some drawbacks. The biggest drawback in using a realtor is that their service is not free. The fee associated with realtors is a standard 6% commission on the sold price of the property. An example of this fee on a $300,000 house the commission is $18,000. So the realtor will charge your estate $18,000 at closing.
Another drawback to using a realtor is the homeowner usually signs a contract with the realtor that gives the realtor explicit rights to selling the house. Regardless of how the house is sold or who sells the house the realtor will get paid their commission during the time the contract is in force. So if your aunt Mary sells the house to a friend, the realtor, not Mary, will get the commission.
A realtor will not make your mortgage payment while the house is up for sale. The homeowner will have to keep all mortgage payments current and up to date. So, in essence, the realtor will not buy your home, keep the payments current, and will lose interest in going the extra step in selling your home if the house doesn’t sell right away.
So why do most homeowners use a realtor to sell their biggest asset? Is it because most homeowners are simply unaware of a better way of selling their property?
How to sell your house faster is by selling your property to a real estate investor. A real estate investor is a professional that buys and sells real estate for a living. They normally don’t use traditional financing and will normally use their own cash. This makes closing on the house extremely fast and efficient. Closing can be as fast as in seven days.
Using a realtor to sell a house will usually take months, not weeks, and the typical closing will take 30 days compared to an investor that usually takes 7-10 days.
Why is A Real Estate Investor A Smarter Idea
Investors simplify the selling process for you, at no cost to you.
An investor knows the market as well as the realtor. They can give you a fair assessment of your home value and back it up with other comparable home sales in that area. Most investors will give you a couple of offers to choose from: A cash offer or a terms offer. Traditional buyers will normally use bank financing.
An investor’s ability to creatively finance a property means that you get the money you want from the sale of your house, quickly, easily, and effortlessly. The advantages are many. It is much more efficient. When you cut out the middleman, the homeowner pockets thousands of dollars that would have gone to the realtor and the bank.
There are fewer fees and fewer hassles than the traditional use of realtors. With an investor, the inspection process is waived because this process, along with financing, will usually kill any deal. The inspection will uncover most, if not all, problems with a house. The last thing a homeowner wants is to be forced to make repairs to their property before it can be put up for sale. An investor takes these problems into account and bases his price accordingly.
Retail buyers are in the market to buy a home that doesn’t require any fixing. An investor buys the property “as is” condition. It is his job to address these problems and fix them. If the property is going to be offered to retail buyers, for example, the investor will rehab the property to make it just like new again.
Most homeowners don’t have the luxury of time to wait idly while their house is up for sale. An investor knows this and will try to make the transition of selling the property run as smoothly as possible. The investor wants the homeowner to know the facts about their property so they can get the best solution to solve their problem.
Almost every homeowner has a little different situation that will dictate what kind of deal is best for the homeowner. Some homeowners may be forced to sell quickly because of a job loss or relocation. This circumstance is totally different from a homeowner that wants to downsize their property due to becoming an empty-nester. An investor will approach each deal differently, depending on the severity of the situation, to give the homeowner the best solution.
There are many reasons a property is for sale. Just three of the many reasons could be bankruptcy or a job loss that the homeowner will be forced to sell, relocating to another part of the city or country is another reason. Appreciation of the home’s value could be a big motivator in selling or a new addition to the family results in needing a bigger home.
Lots of different factors go into the reasons people want to sell their homes. An investor could be the best person to decide on the best solution for the homeowner. An investor doesn’t charge any commissions or fees upfront so the homeowner is getting free education on selling their property, which correlates to making a better decision.
A doctor can’t prescribe medicine until he has diagnosed the problem. The same is true for any professional that is in the business of helping their clients.
Knowing what to do is the first step in making a good decision. Finding the right person for help is the next step. If you are contemplating selling your home, or you want a second opinion about the best course of action, I hope you will consider our services here at Selling My House Solutions.
One way to follow your heart and start building wealth is through real estate. In my How To Grow Wealth post you will learn that real estate is the leading occupation in building wealth.