When it comes time to sell your home, you have two primary options that will likely make the most sense: selling on the market with a realtor or selling off-market for cash to an investor. Each method has its own advantages and disadvantages, and understanding these can help you make an informed decision that best suits your individualized needs.

Selling On-Market with a Realtor

  1. Preparation: Preparing your home for an on-market sale typically involves repairs, upgrades, cleaning, and staging. This process can take time and will oftentimes require some type of a financial investment.
  2. Listing: Your realtor will list your home on the Multiple Listing Service (MLS), making it visible to a wide audience of potential buyers. This will include staging house for the most optimal photos for potential buyers.
  3. Marketing: Realtors use various marketing strategies, including open houses, online listings, and social media, to attract buyers.
  4. Showings and Offers: Potential buyers will schedule showings, and if interested, they’ll make offers. Your realtor will help negotiate these offers. These showings will often be harder to coordinate if you are still living in the property, or have tenants.
  5. Inspections and Appraisals: Once an offer is accepted, the buyer typically orders an inspection and appraisal. This process will usually take 10-21 days to complete. Any issues found during the inspection may lead to renegotiations on price or having to offer financial concessions to the buyer in order to proceed.
  6. Closing: The closing process will typically take between 30-60 days, sometimes longer. During this time, the buyer secures financing, and final paperwork is completed.
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Pros & Cons Of Selling On Market With A Realtor

Pros:

  • Higher Sales Price: Selling on the market generally results in a higher sales price due to competitive bidding and maximum exposure. 
  • Wide Exposure: MLS listings and realtor marketing efforts reach a broad audience. This will generate more buyer leads for the agent. 
  • Professional Guidance: Realtors oftentimes can provide expertise in pricing, marketing, and negotiating. This varies drastically however, dependent of the agent selected and hired.

Cons:

  • Time-Consuming: The process can take several months from preparation to closing. Most homeowners find this process far too stressful.
  • Costs: Realtor commissions, usually 5-6% of the sale price, as welll as closing costs, transfer taxes, escrow fees, repairs and seller concessions. The average homeowner spends around 10-12% of their sale price once the sale is completed. 
  • Uncertainty: Deals can fall through due to financing issues or failed inspections. This can lead to a lot of additional stress and wasted time.

Selling Off-Market for Cash to an Investor

  • Contact an Investor: Reach out to a real estate investor or a company that buys homes for cash. You can typically find them easiest either via Google, through word of mouth, or by advertisements on social media.
  • Property Evaluation: The investor will evaluate your property, often without the need for extensive inspections or appraisals. The process can typically done in just a few days. 
  • Offer: The investor makes an cash offer, usually within a few days. This offer will likely be in writing and have few contingencies included. 
  • Acceptance and Closing: If you accept the offer, the closing process can be completed in as little as a week, with minimal paperwork. A legitimate investor will always use a title company or attorney.

Pros & Cons Of Selling Off-Market for Cash to an Investor

Pros:

  • Speed: The process is much faster, often closing within a week or two, or catering exactly to your needed timeline. 
  • Convenience: No need for repairs, staging, or showings. The investor buys the property "as-is." Means less money spent prior to the sale.
  • Certainty: Cash offers reduce the risk of deals falling through due to financing issues.

Cons:

  • Lower Sales Price: Cash offers from investors are typically lower than market value, reflecting the investor’s need to make a profit.
  • Limited Negotiation: Investors usually provide a take-it-or-leave-it offer. There may be some room for negotiation, but they typically buy strictly based on numbers.
  • Less Exposure: Your property is not marketed to a wide audience, potentially missing out on competitive offers. You will however get to work directly with the buyer without a middleman, such as a realtor.

Which Option is Right for You?

Consider Selling On-Market with a Realtor if:

  • You’re not in a rush to sell and can wait for the right buyer.
  • You’re willing to invest time and money into preparing your home for sale.
  • You don't feel that you can handle selling without representation.
  • You want to maximize the sale price and are comfortable with the traditional real estate process.

Consider Selling Off-Market for Cash to an Investor if:

  • You need to sell quickly due to financial issues, relocation, or other time-sensitive reasons.
  • You prefer a hassle-free process without the need for repairs, showings, or prolonged negotiations.
  • You prefer to deal directly with the buyer instead of paying a realtor and additional fees.
  • You’re willing to accept a lower price in exchange for the convenience and speed of a cash sale.

Conclusion

Both selling on the market with a realtor and selling off-market for cash to an investor have their own sets of benefits and drawbacks. Your choice will depend on your specific circumstances, priorities, and goals. By carefully weighing the pros and cons of each method, you can make an informed decision that aligns with your needs and ensures a smooth and successful home-selling experience.

If you’re considering selling your home off-market for cash, we’re here to help. Our team of experienced investors can provide you with a fair, all-cash offer and close the deal on your timeline. Contact us today to learn more about how we can simplify the home-selling process for you.