What Are Your Options to Sell? Realtor vs Investor
Selling Directly To J&A Home Buyers vs. Listing With A Local Realtor
Even in a seller’s market, it’s smart to look at your options to see how you can best reach your goals with the sale of your house. While you may be able to get a higher sales price listing with a local realtor, that doesn’t always boil down to more money in your pocket or less hassle. The amount of money you make by selling with a Realtor can also be different from your list price. Dive into the details below to compare your selling options.
| Selling w/ A Katy Agent | SOLD To J&A Home Buyers | |
|---|---|---|
| Commissions / Fees: | Up to 6%, paid by you, the seller | None |
| Who Pays Closing Costs? | 2% on average is paid by you, the seller | We pay all costs. |
| Average Days Until Sold: | +/- 91 Days | We provide immediate cash offers. |
| Inspection & Financing Contingency*: | Yes, sales can fall through and the whole process starts over again. | None needed |
| Appraisal Needed: | Yes, the sale is often subject to appraisal. This can cause the sale to fall through right before close. | No, we make cash offers. |
| Number of Showings: | Lot’s of people coming in and out during different times of the day. | 1 (Just Us) |
| Closing Date: | 30-60+/- days after accepting the buyer’s offer | The date of YOUR CHOICE. |
| Who Pays For Repairs? | Negotiated during the inspection period. meaning your final sale number may change. | We pay for all repairs. |
Here at J&A Home Buyers, we make cash offers so you don’t have to worry about our ability to close on a deal.
House Selling Showdown: Realtor vs Investor
At J&A Home Buyers, we are both investors and home buyers. This unique combination sets us apart. When we assess your property, if it doesn’t align with our criteria to provide you with the best terms, conditions, and price, we have a network of realtors who can assist you in listing your property and ensuring you get top dollar. Now, let’s discuss some key factors to consider when making a sale.
1. Timing
Timing plays a crucial role in your selling decision. Investors often have the advantage of a quick closing, typically within seven days or as needed by the seller. Since they offer cash, they bypass the lengthy processes associated with traditional lenders. On the other hand, working with a realtor might mean a longer timeline of 30 to 60 to 90 days, including listing, showings, offers, and the final closing. Market conditions can also influence the speed of the sale, we can show you the current number of days on market for houses near you to give you a better idea of market conditions.
2.Price
Price is a primary concern for most sellers. Realtors are motivated to secure the highest possible price for your home because their commission is based on a percentage of the sale. Typically, sellers pay a six percent commission to the realtor, the seller ends up paying the commission for both the buyer and the seller realtor. In contrast, investors aim to generate a profit while remaining competitive in the market. Most investors will not add closing fees or commissions however several ibuyers and larger outfits will include these in their offer. It is important you read your offer and ask what fees will be pulled out of the offer price to any investor you are working with. At J&A Home Buyers, we do not charge any fees, providing you with a straightforward pricing approach.
In addition to price, you should consider other financial aspects, such as fees and holding costs of your property such as mortgage payment, taxes, insurance and utilities. Do you know what the monthly holding cost is for your house with those four categories? If your house is listed with a realtor you will want to subtract about three months of holding costs from your offer. Realtors may include various fees in the transaction, such as survey fees, HOA fees, home warranty fees, and buyer’s lender fees. These details are usually outlined in the contract prepared by the buyer’s realtor. Conversely, investors typically do not impose such fees, ensuring a more transparent process. It’s vital to fully understand these costs to assess your bottom line accurately.
3. Condition
Another factor to evaluate is the condition of your home. If your property requires repairs or renovations, it may affect its market value. Some repairs might be necessary to meet lender requirements, as certain issues can prevent loan approval. This could result in multiple buyers making offers and falling through on their offer. Common issues include a leaky roof, foundation problems, plumbing or electrical issues, or the presence of mold or mildew. Cash investors like J&A Home Buyers specialize in purchasing houses in various conditions, eliminating the need for extensive repairs before selling.
4. Convenience
Lastly, let’s talk about convenience. Selling to a cash investor like J&A Home Buyers offers a streamlined and hassle-free process. Once we agree on the price and terms, we handle the contract and guide you through the closing process. On the other hand, selling with a realtor involves coordinating showings, managing repairs, handling paperwork, and negotiating with potential buyers. As the seller, you’ll be responsible for maintaining a presentable home and being available for showings. You’ll also need to handle negotiations, inspection requests, and other contractual obligations.
In conclusion, both selling with a realtor and selling to an investor have their unique advantages. Evaluating factors such as timing, price, condition, and convenience will help you determine the best approach for your specific situation. At J&A Home Buyers, we provide flexible options and personalized solutions, whether it’s a direct purchase or a referral to one of our trusted realtors. Feel free to reach out to us for a consultation, and we’ll be happy to assist you in making an informed decision.
Additional Resources:
Free Guide: The Pros and Cons Of Selling A House To A Professional House Buyer – We wrote this guide this year to walk through your 3 options when you need to sell your house. 1) Working with an agent. 2) Selling it yourself. 3) Selling to a real estate investor. This guide will help you analyze the pros, cons, costs, and timeline associated with each option… and it’ll show you which options make sense in what situations. Download the guide free here <<
Washington Post Article On Selling To A Real Estate Investor – Good solid article that walks through how it works to sell to a real estate investor. They’re spot on with their recommendation to make sure you look for an investor who can deliver on their promise (some investors may not be able to actually close on their offer. Every offer we make we back up by being able to close on that offer.) Ask us why we are different when we visit you.
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