Should I sell my home to an investor or with a real estate agent?

May

25

2 comments

Is it better to sell my house to an investor, or list it with a Realtor?

If you're thinking of selling your home, you may see a lot of advertisements from investors offering a quick, easy, cash sale of your home, without showings or real estate agents. It can be enticing, especially if you are facing foreclosure, or your home needs work, or perhaps you just ended up with an unexpected probate home you want to sell fast. But what's really the best way? That depends! Read the pros and cons of working with an investor (or ibuyer like Opendoor) versus listing your home on the open market with a Realtor. 

SELLING YOUR HOUSE DIRECTLY TO AN INVESTOR:

Pros

  • You may only need to show your home once, to the investor, as he is the buyer.
  • You won't need to make any repairs and can sell your home as is.
  • You can pick your closing date and may even be able to close within a few days.
  • Some investors may have specific experience working with distress situations like probate, foreclosure, short sales, tax liens etc. 

Cons

  • The investor works for himself, not you, and has no obligation to serve your needs at all.
  • The investors income is the equity in your home, so your loss is literally their gain.
  • Investors will usually pay you about 70% of your homes market value, or less if you agree.
  • Your home will never be exposed to the open market or buyer competition that would bring a higher price for the home.
  • If something goes wrong, an investor will walk away from your home purchase instead of risking his profit margin, leaving you back at square one.

SELLING YOUR HOUSE WITH A REAL ESTATE AGENT:

Pros

  • Your real estate agent works for you and is legally required to put your needs first.
  • You will get the highest price and best terms possible for your home.
  • Your Realtor will help you decide how to prepare your home for market. You always have the option of selling as-is, with no repairs at all. 
  • The property can be fully marketed on the open market, increasing buyer competition and your proceeds.
  • You can still have an easy, quick, cash sale.
  • Your real estate agent will walk you through all the details of the transaction, getting you the best outcome at every turn.
  • If there is a problem with an existing sale or a lost buyer, your Realtor will work quickly to secure a new buyer. 
  • Some Realtors may have specific experience working with distress situations like probate, foreclosure, short sales, tax liens etc.
  • In certain situations (such as short sales) it will be required that your home is listed by a licensed real estate agent.

Cons

  • An open market sale may take longer than a sale to an investor (though not always).
  • You will have to entertain at least some showings of your home.
  • Buyers may want to inspect the home and may ask for repairs or repair credits (which will be expertly negotiated by your Realtor).
  • Realtor commissions, while negotiable and not set by law, are usually about 6%.

Conclusion:

If you need to sell very fast, cannot bear to list your property on the open market, and are willing to take a very large discount, an investor may be a good choice. If you want to get top dollar for your home, and have a professional handle all the details for you, a local experienced real estate agent is always the better option. 

FIND OUT WHAT YOUR HOME COULD SELL FOR IF YOU LIST WITH US:
[showcaseidx_cma]

I inherited my father's head and was completely in over my head. Minna was amazing in getting things straightened out with the mortgage company (which had been giving me issues for years) and was so responsive to my emails. I had a lot of questions, as this was my first time going through the selling process, and she was able to answer them all quickly. The selling process was so much easier than I expected it to be, thanks to Minna and her team!

Elizabeth smith

Home Seller

Last Updated on September 9, 2022 by Minna Reid

RELATED POSTS:

November 21, 2022

3 bedroom, 2 bath, pool homes near Mayport

November 21, 2022

Condos and townhomes for sale near Mayport

November 17, 2022

Jacksonville, FL Town Center condos for sale

Leave a Reply

Your email address will not be published. Required fields are marked

  1. You might come across numerous adverts from investors if you're considering selling your house. We saw a lot of advertisements that promise a quick, simple, cash sale of your house without open houses or real estate agents. But if you are working with real estate agents who are trustworthy and can aid more profit in comparison to the ones you saw in advertisements!

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}