When it is time to sell your home, what do you think about first? You probably think about hiring a real estate agent to handle the sale of your home. That is the typical reaction. However, is this really the best choice for you? Are you aware of the other ways you can sell your home aside from listing with a real estate agent?
There are options including selling this on your own or even selling this to a real estate investor. So, before you pick up that phone to call a local real estate office, check out why you may want to rethink that decision and avoid hiring a real estate agent right away.
1. Avoid real estate agent commissions
When a person decides to not use a real estate agent they often save around 6% of the proceeds that they get from the sale of the home. While this may not sound like much, remember that this is a percentage of the top-line sales price, not of your profits. For example, if you are selling a home that is worth $400,000 that you bought for $350,000, the 6% of $400k equals $24,000, leaving you with a $26,000 profit from the sale – in this scenario, real estate commissions ate into almost 50% of your total profits! Additionally, since the price of homes in New York is so high compared to most of the country, this 6% commission that gets paid to the real estate agent adds up very quickly. These fees could mean the difference between having a new car or putting down a down payment on a new home.
2. Avoid spending money on repairs and upgrades
One of the things that people will tell you about working with a real estate agent is that they are extremely picky when they agree to list a home on the market. After all, it’s their reputation at stake if the home sits on the market for a long time and doesn’t sell. They may come in and give you a list of repairs or improvements that they want to be done in order to take on the listing, claiming these items will be necessary to get this home sold. They may want you to make dozens of repairs or upgrades to make this home more appealing to buyers.
Of course, it’s easy for them to ask for the repairs, but you are the one who has to front the money to pay for it. Quite frankly, not everyone is in the financial situation to further invest that kind of money in the home and even those that are, many don’t want to deal with the hassles of dealing with a construction crew working in their house as they are preparing to move. Lastly, you can never be sure whether you will get a good return on the money you are being asked to invest in the home.
3. Avoid dealing with traditional buyers
The traditional method of selling a home comes with many hassles and may result in selling your home much slower than some non-traditional methods. It is not uncommon for a property to sit on the market for a year when they are using a real estate agent, especially those homes that are a little dated or in need of repair. During this period where the home is on the market, there are constant open houses and showings where you’ll be asked to leave the house in pristine condition for dozens of strangers to walk through and tour your home. These retail buyers are often making the biggest purchase in their life and get very emotionally invested in the whole process, wanting everything to be perfect.
However, with non-traditional methods, you are reaching a new target demographic that is interested in your home in its current condition, with none of the emotions that come with a traditional retail buyer. Companies like Leave The Key Homebuyers are interested in buying properties in any condition and make a cash offer as soon as they see the home. Imagine the scenario where you can make a call in the morning and have an offer for your home in the afternoon. Why would you wait for months to sell your home when there is this option?
For those who are looking to sell their home, consider that the traditional method of hiring a real estate agent is not always the best answer. Depending upon the situation that you are in and how quickly you are looking to move, you may be best served by avoiding hiring a real estate agent and going the non-traditional route of selling to a real estate investor.