Did you know you don’t always need an agent to sell your home? There are plenty of investors willing to buy homes as-is. Some people only want to sell their home with an agent because they want top dollar and want to know the home is going to a good family. Others don’t want to be bothered with the hassle of cleaning the home up, paying the commissions, and dealing with the hassle of selling a home.
Check out the pros and cons of each method of selling your home below.
The Pros of Selling With an Agent
Selling your home with an agent has its obvious benefits including:
You’ll Likely Make More on the Sale
If you work with a reputable realtor in Massachusetts, you may get a higher sales price for the home. Real estate agents know how to market the home so that buyers want it. They also know how to negotiate the sale in order to get you top dollar for it, but don’t forget about the realtor’s commission. That cost comes right off the top of the sale, eating away at what looks like great profit.
Let’s face it, selling a home is a lot of hard work. When you use a realtor, he/she does all of the work for you. All you have to do is get the home ready to sell and the realtor does the rest. This includes listing, showing, and marketing your home. Once there are bids, the realtor handles the negotiations, contract signing, and sees the process through all the way to the closing.
The Cons of Using a Real Estate Agent
Of course, there are some downsides to using a real estate agent including:
You Must Keep the Home Clean
You’ll have to be on your toes when you list with a real estate agent. He or she will expect your home to be ready to show at any given moment. Sometimes you may only get 30 minutes notice that someone wants to see your home. If you pass on it, you may lose a good sale.
It Costs a Lot
Realtors aren’t cheap and some aren’t even full-service. Even after you pay the 3% – 5% commission, you may have to pay for other services, such as marketing, staging, open houses, or other miscellaneous costs. Make sure you know exactly what a realtor offers before signing a contract.
The Pros of Selling to an Investor
If you’d rather skip the real estate agent and go right to an investor, you’ll realize the following benefits:
You’ll Sell the Home Fast
Forget the worry of making the home perfect – investors buy homes as-is. This means several things. First, you’ll save money on repairs, staging, and storage. Second, you’ll avoid the expensive realtor’s commission and finally, you’ll avoid the cost of holding the home, including the cost of the mortgage (interest), utilities, and other routine maintenance costs.
When an investor buys your home directly, you can often close in as little as one week. You don’t have to worry about lengthy negotiations or having numerous people walk through your home when you least expect it. Investors come in, see your home once and supply you with a bid. If you accept it, you may close in a short amount of time, saving money and headaches in the process.
The Cons of Selling to an Investor
You May Get a Lower Sales Price
Investors often offer a lower price for homes when buying them as-is, but don’t take it at face value. When you list the home with a realtor, the realtor has fees. For example, let’s say you sold your home for $200,000 with a realtor. If the realtor charges a 6% commission, you’ll take $12,000 right off the top. If you sell to an investor, you may get a bid for $190,000, which is still more than you would have walked away if you used a realtor.