If you’ve decided to sell your home, the next step is to have an understanding of the time frame you can work with and an idea of a price that you want for the home. There are a few different routes you can choose when selling your home such as FSBO (For Sale By Owner), Listing it with a Realtor or selling it to an Investor.
Each route has its advantages and disadvantages and we will briefly go over each process and their pros and cons so you have a clearer idea of which option best fits your situation
(For Sale By Owner) FSBO
The internet has made it easier for home owners to sell their home independently. Home owners can put their properties for sale on websites such as craigslist or forsalebyowner.com and take control of the whole process when selling their home.
The steps include
Come up with an evaluation on your home, by either doing research on websites such as zillow to find out what home similar to yours are selling for, or to hire an appraisal or an an agent to give you an evaluation of the home
Once you have an idea of a price, you can put together all the pictures and specific details about your home and list your property on a FSBO website. You can further market the property with newspaper ads and putting a FSBO sign outside your home.
You have to arrange and manage all the open houses and requests from buyers to see the home
Weigh in all the offers, accept an offer and take care of all the paperwork with your attorney
Schedule a closing date and close the deal
Timeline
You should figure about 6-12 months when selling your home For Sale by Owner
Pros
If you are familiar with real estate and understand the process of real estate transactions this may be the right fit. You don’t have to pay any Real Estate Agent commissions .You have full control over all the marketing of your property, working with buyers, and all the steps and paperwork necessary to close a deal.
Cons
Managing all the steps to sell your home can be overwhelming. If you’re not experienced with real estate transactions, all the paperwork and working with the buyer to obtain their financing can be stressful. Buyers agents typically bring the buyer to 70% of homes sold on the market, and buyers agents very often won’t bring their buyer to a FSBO property because they are not going to earn any commission.
Listing your Home with a Real Estate Agent
The most common way homes get sold on the market is with a Real Estate Agent. An agent will guide you through all the steps to get your home sold.
The steps Include
To get in touch with a Real Estate Agent and have them visit your home so they can give you an evaluation of what your home is worth
Sign a listing agreement with the Realtor
The Real Estate Agent will put the property on the MLS(Multiple Listing Service), and other marketing channels and will hold all the open houses and showings.
The Real Estate Agent will take care of all the paperwork and negotiate with the buyer on the price
Once the home is sold, you pay the Real Estate Agent their commission.
Timeline
It will typically take a Realtor 3-9 months to sell a home for the right price.
Pros
A real estate agent will guide you through all the steps to sell the home, manage all the showings for the buyers, and guide you through all the paperwork. They have access to the MLS and are able to market the home to as many buyers as possible and help you max out on the price. A real estate agent also has a fingertip feel on the market and can help you price the property correctly.
Cons
A chunk of commissions gets paid out of the proceeds from the sale of your home. You are still responsible for the costs of your home while listing your home with a Real estate agent which can take up to 9 months. A buyer that is obtaining a mortgage on the home can have their financing fall through, months into the process of selling your home, which will lead to having to start over the process of finding a buyer.
Selling your home to an Investor
Another option of selling your home would be to your local real estate investor. A real estate investor typically buys houses in cash and as-is, and either fixes them up and sells them or keeps them as rental properties.
The steps include
Get in touch with your local real estate investor and talk to them about your home and situation
Arrange a day to give them a tour of your home so they have an idea of the condition, in order for them to put together their highest and best offer.
Review their offer and see if it is the right fit for your situation
When you agree on price they will walk you through the process of selling your home
Have an attorney draw up the contract and arrange a closing date
Sell the home
Timeline
As quick as 7-14 days or a specific timeline/date that you would like to close or transition into your next place.
Pros
If your home is in bad shape and you don’t want to do any repairs, a real estate investor will buy the home in as-is condition and with the tenants in place. They will purchase the property in cash so you don’t have to worry about the buyer’s mortgage getting denied. They can close quickly or work on your schedule. There are no real estate agent commission fees. You won’t have to worry about showing the house a bunch of times to buyers. Depending on your situation a real estate investor can help you get current on your mortgage payments.
Cons
The main drawback is that you sell your home at discount in exchange for speed, certainty and convenience. A real estate investor has to figure in some profit when they buy houses, but they will be able to close on your schedule, guarantee that you get the price you agree on and eliminate any concerns about a buyers mortgage getting denied, and the convenience of the offer they structure to best fit your unique situation that a retail buyer will not be able to fulfill.