So You Want to Sell Your House?

Simple enough… or at least it should be…

Well, we've been doing this “buying and selling real estate thing” for a long time, and we know it can be a really smooth

process… or it can be a confusing, time-consuming and an even frustrating experience.

(Let's assume you’re the smooth sailing type)

But seriously… Advertising the property, working (or not working) with a Realtor (or choosing the right one), keeping the house clean, good info vs. misinformation, showing the house to tons of [sometimes unqualified] buyers, dealing with mortgages, appraisers and banks, paying (or not paying) a Realtor commission, waiting months to close… it’s a lot to take in,

and there are a lot of decisions to be made.

So the question to you is…

How can we make this process EASIER to understand, CHEAPER to sell, and how can we close FASTER???

[Spoiler Alert] There isn’t a “Right” or even “One-Size-Fits-All” answer here.

Instead, let's break down the various options you have for selling your house, while revealing the the pros, cons, timeline and costs of each option.

Three Primary Options For Selling Your Property:

There are 3 primary options available to you when you’re looking to sell your property.

Option 1: Working with a Real Estate Agent

This is the most popular and common way that the average person goes about trying to sell his or her house.

The Process:

1. Contact an agent and discuss what they think the house will sell for.

2. Sign a listing agreement with the agent for a predetermined amount of time (typically 6 months to 1 year). The agent represents you exclusively and will try to sell your property. Regardless of who finds a buyer, you will pay the agent a commission at closing.

3. The agent lists the property on the MLS, advertises the house, takes buyers to see the home and coordinates with other Realtors to show the property. Having the house in excellent condition will increase your ability to sell.

4. If the property sells, the agent will coordinate the closing and you will pay them a commission.

The Cost of Working with A Real Estate Agent:

• Agents work on commission. The average commission is 6% of the purchase price. If you are selling a house for $250,000 for example, you would pay the agent $15,000 for their services.

• In order to sell your property, many agents will recommend touch ups, upgrades, and/or repairs to the house. You should plan to make the necessary repairs to ensure that your property appraises, and that a traditional buyer can secure financing. This will vary from property to property depending on the level of repairs needed.

• Sellers are typically responsible for a percentage of the closing costs

Timetable for Selling

• The timetable for selling your home largely depends on the market. You want to look at the national market to determine if you are in the midst of a “buyers” or “sellers” market. In addition, search your local market to determine if you are in a high demand or low demand market. On average, homes can take 3 to 6 months to sell.

Advantages of Working with a Real Estate Agent

1. When you choose the right agent (usually by way of referral, or one with a positive sales history), they should be knowledgable about your market.

2. Agents have direct access to the MLS, the primary way in which houses are listed when selling via the traditional route.

3. Agents will handle showing your property to prospective buyers.

4. Agents will assist with the contracts and paperwork required to sell the house.

Disadvantages of Working with a Real Estate Agent

1. With the rise of online services (e.g. Zillow and Realtor.com), many of the services provided by an agent are no longer exclusive to licensed agents and can therefore make the cost harder to justify (think what Uber did to Taxi Cabs).

2. Not all agents are created equally; results will vary.

3. Time - On average it will take approximately 3 to 6 months to sell. You are also still responsible for the costs of the house (taxes, maintenance, utilities, insurance, etc.) while you are trying to sell.

4. Inconvenient - showing times, foot traffic, keeping the house clean and in “showing” condition.

5. Cost - 6% of the sales price is the average commission that you must pay the Realtor. You will be responsible for a portion of the closing costs as well.

6. Repairs - Property must be in good condition. Not only will this be better for showing, but if a buyer is using a traditional mortgage, the property will not be approved by the lender if significant repairs are required.

7. When working with retail buyers (as most agents do), there is a chance that the buyer’s financing will fall through or the property may not appraise.

Is Working with a Traditional Real Estate Agent Right For Me?

Hiring a traditional Real Estate agent might be right for you if you aren’t in a rush and can wait 3 - 6 months to sell. Likewise, using a Realtor might be in your best interest if your house is in good shape or if you are willing to make repairs in order to get a full market value offer on your house. Finally, if you have the budget to pay the agent’s fees (commission), using a Realtor might be a good option for you.

Option 2: For Sale By Owner

Selling your house on your own is typically more daunting of a task than many homeowners realize. Only about 7% of homes are sold directly by the owner. Nonetheless, with the rise of websites and services like Craigslist and FSBO.com, there are some situations where this option might be suitable for you.

The Process:

1. Determine the value of your home and how much you’d like to sell for. This can be tricky for the non-professional, but there are resources out there that can assist you after you’ve completed the initial research.

The most accurate way to do this is to pay for an appraisal from a licensed appraiser.

2. Put together your marketing materials. This starts with taking high quality photos and video (It’s highly recommended to have a professional photographer do this for you). Next, put together the details of your property (size, year built, beds, bathrooms, features, etc.) and create an advertisement.

3. Advertise the property. This includes:

• Posting on classified websites such as craigslist.org and forsalebyowner.com

• Paying for advertisements in local newspapers and publications

• Buying online ads

• Talking to family, friends and neighbors (word of mouth)

• Creating and distributing flyers

• Purchasing and putting up a sign in your yard

• Use a “Flat Rate” MLS service which will allow you to post your property on the MLS without an agent (and the associated fees), for around $500

4. Show the property. Since there is no agent involved, you are responsible for speaking to, and coordinating with, potential buyers, hosting “open houses,” and showing the property.

5. When you find a suitable buyer, you are responsible for handling all paperwork and contracts. It is recommended that you work with an attorney when doing this on your own.

6. Coordinate with a local title company or attorney and close.

The Cost of Selling Your Home Yourself (FSBO)

The costs of selling your house are largely dependent on how you choose to advertise your property. Typically, the more you spend, the faster you can sell.

Common methods (including posting on a for sale by owner website or using a flat rate MLS service) can cost between $100 and $1000.

When listing your property on the MLS, buyers agents (Realtors) may bring potential buyers to you. In that case you would be expected to pay the agent a commission (the standard is 3%) based on the sales price.

Other costs include the cost to repair the house (varies), cleaning up and paying for any liens, violations, permits or fines, attorney’s fees (if you choose to retain an attorney to assist with the closing) and a portion of the closing costs.

FSBO Timetable

Of the three methods of selling your house, the FSBO statistics vary the most. Your ability to sell depends largely on your available time (to show the property), your marketing budget, and your ability to market (write copy, take photos, computer savviness, use online resources such as Facebook Ads, etc).

In general, For Sale By Owner houses take longer to sell than houses listed with a Real Estate Agent for a number of reasons. Real Estate agents are professionals with experience in selling your property. In addition to knowing how to advertise, a good agent will have a good network to engage in order to further facilitate the sale. Finally, showings can be done with or without your presence, as the Realtor will be handling this aspect of the sale. On average, you can expect this process to take approximately 6 to 12 months.

Advantages of “For Sale By Owner” Sales

1. Choosing to sell your home yourself can be less expensive than listing your property with a traditional sales agent.

2. You have control over every aspect of the selling process including showings and closing.

Disadvantages of “For Sale By Owner” Sales

1. Timetable - Selling your home on your own generally takes more time than listing with a traditional Realtor.

2. Time Consuming - The effort you expend on advertising is largely correlated with the time it will take to sell. In addition to managing all of your advertisements, you will be in charge of showings.

3. You must have a good understanding of the paperwork and be able to coordinate the sale

Is The FSBO Route Right For Me?

Selling your house on your own is a good option for people who don’t mind waiting to sell. When going this route you should be comfortable with online and physical advertising, showing the property on a regular basis, and you should also be comfortable with negotiations and paperwork. If you need to sell quickly and/or don’t want the hassle of dealing with everything that goes with listing and selling your house yourself... this isn’t the strategy for you.

Option 3: Selling Your House To a Professional Real Estate Investor (Selling to Us 🤗)

The third option for selling your house is to sell to a local real estate investor who purchases properties with cash. Private investors and investment companies purchase homes to fix and resell them, or to hold them as rental properties.

The Process:

1. Connect with us and simply tell us about your property.

2. We will evaluate the house, review comparable sales in the neighborhood, and make you an offer on the property. We will purchase the property in “As-Is” Condition so there is no need for you to make repairs or even empty the property.

3. Review the offer and decide if the offer works for you.

4. Closing will take place at a licensed title company/Attorney's office. Since we are paying cash, there will be no red tape, appraisals, banks or other delays and you can close quickly, often in a matter of days.

The Cost of Selling Your House To a Real Estate Investor

There is virtually no cost to selling your house to us.

There is no budget to spend on advertising, there are no appraisals that need to be ordered, there are no commissions or fees to be paid, and we will even pay your closing costs.

Timetable of Selling to a Real Estate Investor

Selling to a Real Estate Investor is the fastest of the three options and can take as little as 7 days (We can actually close within 48 hours of Clean Title Confirmation).

Advantages of Selling to a Real Estate Investor

1. Fast - No dealing with banks or lenders. You can get an offer within minutes and close within a few days

2. No closing costs (We pay those 😊)

3. No holding/carrying costs. Many sellers often overlook the carrying costs associated with selling. During the sales process you are still responsible for things like maintenance, taxes, utilities, insurance, HOA fees, mortgage payments and more. If these costs run you $2,000 per month and your property takes 6 months to close, you would have paid an additional $12,000 during your sales process.

4. No repairs necessary

5. No commissions (on a $200,000 house, that would be $12,000)

Disadvantages of Selling to a Real Estate Investor

1. Real Estate Investors need to buy profitable deals. In order to provide you with a fast and convenient transaction (and in exchange for a Fast, Cash purchase), investors do not typically pay the same retail prices as a traditional buyer who is taking out a loan.

Is Selling to a Real Estate Investor Right For Me?

Selling to an investor is the easiest of the three sales methods. For people who are willing to sacrifice a bit of the sales price in exchange for a fast, cash transaction, this might be a suitable option. This is also a good option for owners who don’t want to be “involved” in the sale (e.g. an owner who lives in a different state or an owner who doesn’t want to make repairs to the property).

If you’d like to sell your property in a matter of days rather than months, this might be the option for you.

How We Can Help You…

Hopefully this guide has helped you decide what selling option works best for you. In the end, there is no “one-size-fits-all” solution. If you have a lot of time and aren’t in a hurry to sell... you may want to consider trying to sell the property on your own first. Then, if you still have a lot of time (i.e. you don’t care if it takes longer than 6 months to sell), you may want to work with an agent.

However, if you need or want to sell quickly .... (perhaps you are facing foreclosure, have inherited a house, have a damaged property, you’re planning on moving, have problematic tenants in a rental property… really any situation that calls for a fast and no hassle sale), working with us may be the way to go).

Spoiler Alert…

We are Real Estate investors :)

And on behalf of our team, we're happy to admit that we would like to buy your property.

Clearly, we aren’t the only Investors buying properties… but we are the best! Here are just a few reasons sellers like yourself have opted to sell to us rather than to other investors.

How We’re Unique: