Homeowners who are looking to sell their house are often faced with the dilemma of which expert to work with. Should they go with a realtor and let them find a suitable customer, or should they sell it directly to a cash buyer such as an investor?
There is no right answer to this question since it depends on your specific situation. Below are 5 benefits of selling your house to an investor.
With a realtor, you will have to repair and renovate your property. This requires you to invest a lot of time and money to make the repairs. It should be noted that the older your house is, the costlier it would be to renovate the house. In comparison, an investor will buy your house AS IS which means you will save money from repairs.
The process of selling a property through a realtor is a lengthy one. This involves considering the time needed to get a decent realtor, finding a suitable customer and then negotiating on price and finally closing the transaction. In comparison, usually an investor will buy the property for CASH without any financing contingencies.
Holding costs such as taxes, mortgages, utilities and insurance issues will only increase your stress when you are dealing with a realtor. These are the things that you do not have to worry about if you sell to an investor as typically your investor will take care of such payments.
As opposed to a realtor, with an investor you would have the flexibility of selling on your own timeline. The flexible timing means you can negotiate whenever you want and as soon as you agree on terms and price, you can seal the deal immediately.
The most important financial benefit that comes from selling through an investor is the money that you save from not paying commissions. Necessity or not, realtors always cost quite a lot, and by selling your house to an investor, that money would stay right in your pocket. For example, on a house priced at $100,000 you would be saving $6,000 in commissions (6%)!
Overall, hiring a realtor takes time, money time and the flexibility of negotiating on your own terms with the client. Depending on your situation, it may be beneficial to sell directly to an investor particularly if you want to save money from repairs, sell for cash and on your timeline.
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