Do you need to sell your Houston area house? What are the pros and cons of using a realtor vs. selling to a home investor? If this sounds like you, then read on…
Selling your house can be complex. It’s usually one of the biggest transactions we make in our life. It’s very smart to consider all your options.
Pros And Cons Of Selling Through A Realtor
Pros:
- Realtors are usually professionals and they should know how to handle the sale process
- They will negotiate for you
- They will guide you through the process
- You will have access to “retail” buyers and should be able to sell for more
Cons:
- Just because you sell for more, doesn’t mean you will net more. You will pay steep commissions, closing costs, repairs, etc.
- You will be “marketing” the house, which means lots of clean-up, repairs, showings, waiting and hoping.
- The typical time to sell in Houston right now is 3- 6 months, or longer.
- While waiting you have to continue to pay the mortgage, taxes, utilities, insurance, dues, maintenance, etc.
- You usually have to negotiate your price down
- Virtually all offers from “retail” buyers have contingencies: the house has to pass inspection and, repairs may be required by the lender; an appraisal has to be high enough; the buyer has to be approved for financing. The sale is usually cancelled if any of these are not overcome.
Should I Use A Realtor Or Home Investor?
Pros And Cons Of Selling To A Home Investor
Pros:
- The investor should have bought many homes and know the process
- You will get an offer right up front – no waiting
- You won’t have to do any repairs
- You won’t have to clean your house and can usually leave stuff behind
- You can close whenever you want- usually in as little as a week or in 30-90 days if you need the time
- If you choose to close quick, you can avoid the maintenance and all those bills (mortgage, taxes, HOA, etc)
- You pay no commissions and usually no closing costs
- There should be no contingencies. If the offer is for “ALL CASH” and “AS IS,” then there is no financing needed, no appraisal needed, and no inspection needed. This means you will have peace of mind, knowing you have a “locked” sale in place, so you can move forward with your life.
Cons:
- You will not get a “retail” price for your house – an investor has to do the repairs or updates, pay all the commissions and closing costs, and make a profit
What Is Your Better Option?
It really comes down to these three questions:
- Do you NEED to sell Fast?
- Does your house need a lot of repairs or updates to be marketable?
- Do you want to avoid all the hassle, waiting, and not knowing of the traditional selling process?
…..If you can answer YES to at least 2 out of those 3 questions, then you should consider selling to a local home investor.
Conclusion
There is no question: If your home is in good marketable shape, and if you have the time, and you don’t mind going through all the trouble of marketing your home, then you will most likely come out ahead if you sell through a realtor. However, if your house needs repairs or updates to be marketable, and if you don’t have the time or will power, then you should get an offer from a home investor. Then you can weigh your options and choose the best option for you. (Click here for a comparison chart of Listing vs. Home Buyer.)
Be Careful!
(a plug for American Home Buyer)
Because I currently work for American Home Buyer, you could argue that I’m biased. I am. But, I used to be a realtor, and I have tried hard here to be objective. Here’s what you should be careful of. Notice all the “shoulds” and “coulds” in the investor “pros” section above. You want to make sure the home investor you deal with can perform in these areas. I can tell you that American Home Buyer goes above and beyond those standards. We have a great reputation in Houston with buyers, sellers and Realtors. Here are some of the reasons:
- We have bought hundreds of houses and can professionally handle the process from start to finish through a licensed title company here in Houston
- We pay cash, close in as little as 3 days or 3 months-whichever you need
- There are no contingencies in our offers. Our offer is a Guaranteed Cash Offer- AS IS
- We always deal with everyone openly and honestly. Its just better that way
If you would like to get an offer from American Home Buyer, its pretty easy. Just give us a call or fill out the form below. We’ll contact you, research your home, and make our best offer. There is no obligation, and then you’ll be able to decide what’s best for you.