Every day there is a homeowner asking themselves if they should sell their house the traditional way with a realtor is the best way, or should they sell to Cash Home Buyers Calgary. While real estate investors promise cash in hand, fast closing, and hassle free, is it really that way?
At 5daysSold Cash Home Buyers, we do things a little different. We listen to the homeowner’s goals and needs then make recommendations on the best possible option for them. Sometimes, we aren’t making any money at it. In this blog we are going to provide our advice and suggestions when selling directly to an investor is the better option versus selling it the traditional way.
The Tortoise and the Hare
We’ve all heard or read the story about the tortoise and the hare. When we compare that story to the world of real estate, the investor would be “The Hare” and agents listing on MLS would be “The Tortoise.”
How so? Investors of real estate buy houses in as-is condition, cash, quick closing because they don’t require appraisal or inspection. The seller doesn’t have to make repairs or upgrades and they will have cash in hand within typically 7 days. There are real estate investing companies that is their primary business.
In addition to the time for a seller to make repairs and upgrades, when they place their house on MLS Calgary, there is a lot of stuff going on in the background. They have to have an MLS registered real estate agent, the house has to be staged and pictures taken, then there are showings, maybe open houses.
Knowing there are strangers going in and out of your home can be unsettling for many sellers. Then once you get an offer on the house, there is the appraisal, inspections, and negotiating. The whole process can take months, maybe years.
Yes, “The Tortoise” wins sometimes if you don’t mind the waiting and working, or the intrusions. If you’re okay with all these things, then “The Hare” offer to buy your house as-is for fast with a quick closing doesn’t seem as appealing. The slow and steady process of MLS and a real estate agent will yield a higher price, and by signing up with a real estate agent from the area, they will know the type of buyers for your type of house. If that is your preferred method, then give us a call and let us get you in touch with the best Realtor for you. Yes, we do that for free.
The Cash Offer
Real estate investors buy houses for cash. They do not have any bank approval, and that means they don’t deal with any of the associated hassles and headaches either. So, if you’re looking to sell fast for cash, then a real estate investor if your best choice.
When you sell your house off-market to a real estate investor, there isn’t any concern the buyer can’t get approved for conventional mortgage financing. Working with banks can make the whole process take months and at the last minute, there may be the decision the buyer isn’t qualified.
It is a frustrating process that doesn’t always end up with the house sold, and the seller has wasted precious time, maybe lost the deal on their new house. With a cash offer, all of that is eliminated. However, selling for cash isn’t always the way to go either.
A house that is in almost perfect condition, the mortgage usually isn’t because of the appraisal or inspection. So, as a seller, if you’re willing to wait this process out, you aren’t going to be impacted as much if the buyer’s mortgage doesn’t go through.
Maximum Visibility Has Realtor Commission Attached
MLS will get your house seen by more prospective buyers. MLS will make your house visible around the world. With Realtor.com, Redfin, Trulia, and Zillow, anyone that has the internet can see your house. The more interested people you have, the higher price you could get for your house. Bidding wars aren’t that uncommon, especially if the house is in near perfect condition.
However, MLS will cost you too, mainly with the six-percent commission you’ll pay your realtor. If you get enough visibility that brings in high offers, then yes, that 6% is worthwhile. When 5daysSold.com does a fix-and-flip property, we use MLS too.
What if your house isn’t in perfect condition? The only person that will be interested in buying it will be a real estate investor, and they aren’t going to offer top dollar. So, you’ll lose money with a realtor and that 6% commission.
Keep in mind when you go with a realtor and listing on MLS, you’re still paying insurance, maintenance, taxes, and utilities on the property. If the property is unsecured and in significantly bad shape, ownership has legal liability risks. Take the time to weigh out the options between the listing on MLS with a realtor or selling to an investor like 5DaysSold.com.
Sum It Up!
Choosing to sell your hour to a real estate investor, you’ll have a quick sale with no muscle required and no commission. Choosing to sell your house with a realtor and MLS listing will get you more visibility in the real estate world and a higher price, but you’ll pay that 6% commission.
For a fast sale on a house that needs repairs, it is our humble opinion to sell your house to 5DaysSold or other real estate investor. You’ll be out from under the constraints of a house you don’t need or want and can move on with your future within 5 days.