If you are like the average home owner, then when you are selling
your home, you are about to
embark on one of the largest financial
processes in your life. One question many home owners ask is whether or
not they need to use a real estate agent or whether they should consider
selling to an investor. You may have some preconceived notions about
these jobs, but there are some clear benefits to both choices depending
upon your situation.
When to use a Realtor
The answer depends on two things: whether your home is in good condition and whether you are comfortable with an extended selling period. If your home is in good condition, then you could get the most value out of using a real estate agent and traditional home sale process. The majority of buyers that use Realtors are buyers who are planning to move into the home they buy. Thus, buyers are willing to pay a large sum over investors in order to acquire a move in ready home.
For the chance of a higher overall closing price, a home owner must be able to weather the period of time that a house remains unsold on the market. During the time it sits on the market, the house needs to be kept constantly clean and well staged. You will have the emotional ups and downs of not having buyers, a lot of buyers but few offers, very low offers, and then the game of counteroffers. If there are small repairs, then they must be done before the house is on the market or a buyer may ask you to make such repairs as a condition of the sale. The process of selling a home in the traditional manner is more time consuming and takes more effort. However, it is worth it with a pretty house.
When to use a Real Estate Investor
The answer is when your home is not in good condition and/or you need financial assistance. Real estate investors make their living from purchasing properties, and then making a profit either through flipping the home, renting, or renovation. As long as there is a profit to be had, many real estate investors are open to negotiation on the time and conditions of the sale. This can be boon for hurting home owners who either need to sell their home fast or prevent foreclosure.
Also if your home needs a lot of repairs instead of spending the time and money to fix the house yourself you can sell to an investor and save yourself the headache. Companies who buy houses usually get the house and do the renovations themselves. This means you don't have to go through the process of finding and hiring all of the people to do the repairs. Plus you don't have to put out all of that money either and wait to get it back.
If you need cash quickly, many real estate investors are willing to purchase the entire home's price in liquid funds. In comparison, in a traditional sale, home buyers may only pay for the down payment in cash and may have to wait several days for the loan paperwork to be approved and finalized. Because investors are generally experienced with the buying and selling process, they already have their financial papers in order and they can close the sale in as little as two weeks.
Finally, if you can prove that you would make a good tenant, many real estate investors will allow you to live in your own home as a renter well after the sale. From the investor's point of view, they are getting a tenant to live in the home without having to look for one. From the former owner's point of view, they are given time to put their finances back in order without the looming threat of eviction.
In summary
When to use a Realtor
The answer depends on two things: whether your home is in good condition and whether you are comfortable with an extended selling period. If your home is in good condition, then you could get the most value out of using a real estate agent and traditional home sale process. The majority of buyers that use Realtors are buyers who are planning to move into the home they buy. Thus, buyers are willing to pay a large sum over investors in order to acquire a move in ready home.
For the chance of a higher overall closing price, a home owner must be able to weather the period of time that a house remains unsold on the market. During the time it sits on the market, the house needs to be kept constantly clean and well staged. You will have the emotional ups and downs of not having buyers, a lot of buyers but few offers, very low offers, and then the game of counteroffers. If there are small repairs, then they must be done before the house is on the market or a buyer may ask you to make such repairs as a condition of the sale. The process of selling a home in the traditional manner is more time consuming and takes more effort. However, it is worth it with a pretty house.
When to use a Real Estate Investor
The answer is when your home is not in good condition and/or you need financial assistance. Real estate investors make their living from purchasing properties, and then making a profit either through flipping the home, renting, or renovation. As long as there is a profit to be had, many real estate investors are open to negotiation on the time and conditions of the sale. This can be boon for hurting home owners who either need to sell their home fast or prevent foreclosure.
Also if your home needs a lot of repairs instead of spending the time and money to fix the house yourself you can sell to an investor and save yourself the headache. Companies who buy houses usually get the house and do the renovations themselves. This means you don't have to go through the process of finding and hiring all of the people to do the repairs. Plus you don't have to put out all of that money either and wait to get it back.
If you need cash quickly, many real estate investors are willing to purchase the entire home's price in liquid funds. In comparison, in a traditional sale, home buyers may only pay for the down payment in cash and may have to wait several days for the loan paperwork to be approved and finalized. Because investors are generally experienced with the buying and selling process, they already have their financial papers in order and they can close the sale in as little as two weeks.
Finally, if you can prove that you would make a good tenant, many real estate investors will allow you to live in your own home as a renter well after the sale. From the investor's point of view, they are getting a tenant to live in the home without having to look for one. From the former owner's point of view, they are given time to put their finances back in order without the looming threat of eviction.
In summary
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