When it’s time to sell your home, you may find that you automatically gravitate toward the familiarity of a traditional home sale with a real estate agent as your representative. However, there are many different avenues available to you and you may find that putting your home on the market and waiting doesn’t fit in with your plans or your timeline. We’ve put together a guide to home sale scenarios, providing you with a variety of different ways to sell your home so that you can create a process that truly works for you.

Traditional MLS Listing

This is probably what you think about when you first consider selling your home. A standard listing process means that you’ll be working with a real estate agent and preparing your home for the open market, seeking to appeal to buyers in your area and beyond.

Pros

One of the biggest advantages of listing your home on the MLS is the opportunity it gives you to reach a large audience. The MLS, or Multiple Listing Service, feeds photos, video, and floorplans of your home, a well-written property description, and facts about your home’s history and your neighborhood to all of the major real estate portals, putting your property in front of an international audience of buyers and real estate professionals. From a marketing perspective, this is a huge boost to your home’s visibility and greatly increases your chances of getting your home in front of the right buyer.

By working with a real estate agent or broker, you’ll be able to take advantage of professional-level market knowledge and marketing strategies. That can help you more accurately price your home for sale at the sweet spot that brings buyers through the door without leaving money on the table. In addition, your agent will schedule and conduct tours of the property and provide information to interested buyers and their real estate agents.

Of course, both of these elements — the right price and a wide audience reach — help to ensure that you sell your home more quickly. The more days your home sits on the market, the less interest buyers will generally show and the more they will tend to submit lowball offers well below the asking price. Timing and pricing are both important for an optimal home sale process, and they are both enhanced by a traditional listing process.

Another advantage of working with a real estate professional is that they provide their expertise about the transaction process and documentation required to sell your property. A home sale is a complex legal and financial process, requiring a high level of knowledge to navigate. By working with a licensed agent or broker, you’ll have someone to talk to when you have questions or concerns. This is especially important if you have very little experience with the home sale process — for instance if you are a first-time home seller or have been living in your current home for several years.

Cons

Although a traditional bold text listing process is a popular option, it’s not without its drawbacks. One of the more frustrating aspects of a traditional sale is the need to prepare your home for buyers in your market. This may involve a great deal of maintenance, cosmetic updates and upgrades, as well as day-to-day cleaning and upkeep so that your home is always “buyer-ready.”

In addition, you may discover that you’ve negotiated an offer only to find yourself in a whole new negotiation following the home inspection. While some buyers may be willing to compromise or split the difference, others may deliver a laundry list of demands and expect you to complete a host of repairs before the closing. This can be expensive and time-consuming, especially if you’re simultaneously preparing for your own home purchase and moving process.

You may find yourself negotiating again after the appraisal process, a step that is required by lenders during the mortgage underwriting process. If your buyers have submitted an appraisal contingency, they may be prepared to walk away following a lower-than-expected appraisal, forcing you to begin the process all over again and find a new buyer for your home.

Finally, most people consider the real estate agent commission structure something of a drawback, especially since it can amount to a large percentage of your home’s sale price. While commissions may vary by market, most of them range between 2-3% per side for a total of 5-6% of the home’s market value. Some agents are highly competent, adding value to the process and earning their commission through superior negotiation skills and hefty marketing outlays prior to sale. That’s why it’s important to ensure that the agent you work with provides excellent client service and optimal outcomes.

Sell to a Cash Buyer or Investor

If you want to bypass some of the complexities of the home sale process, you may be looking for an opportunity to sell to an investor or cash buyer. This can save you time and money, making it possible for you to close more quickly and more reliably, often without the excessive costs associated with a traditional home sale.

Pros

One of the biggest advantages of selling to a cash buyer or investor is the quick turnaround time from the date of your ratified contract to the date of your closing. Because the cash buyer does not require mortgage underwriting, you can save weeks or even months over a traditional escrow period. In fact, some cash buyers with a streamlined operation may be able to close in under two weeks.

In the same vein, working with a cash buyer may offer you a more secure sale process than working with buyer financing. Traditional buyer financing can fall through, either because the buyer fails to qualify for the mortgage or because they have more contingencies and restrictions on their purchase process, making it more likely that they will walk away from the transaction. By contrast, a buyer with cash in hand has no real impediment to closing and offers the security of verified funds up front.

Often, you’ll find that cash buyers are more willing to move forward with a purchase even if the property needs work or repairs. Because they may be purchasing the property as an investment, cash buyers are less troubled by minor cosmetic flaws since they often have their own plans for the property after the sale. That may help you save money by minimizing prep and post-inspection repair requests.

With a cash buyer, you may also find that you save money on real estate agent commissions. Because the purchase is more straightforward, and because many cash buyers are experienced investors, they may have a streamlined purchase process already in place. This may mean that you are able to proceed without paying a buyer commission or, in some cases, a seller commission as well.

Cons

Often a cash buyer will expect a premium in exchange for the convenience and money-saving power of cash. Because they are simplifying the process and costing you less, the offer you receive from a cash buyer may be lower than what you’ll receive from a traditional sale process on the open market. It is important to weigh this reduced offer price against the money you’ll save with fewer days on market, reduced carrying costs, and lower costs associated with the marketing and improvement of your property.

FSBO (For Sale By Owner)

What if you could forego the agent commission altogether and negotiate your home sale yourself? That is the thinking behind FSBOs — homeowners who act as their own real estate marketing and transaction professionals. Here are some things to consider before you go this route.

Pros

For the vast majority of FSBO sellers, the main pro is the savings they expect to garner from not paying a commission to their listing agent. Some FSBOs put a “For Sale” sign in the front yard, sit back and hope for the best, while others may pay a minimal fee to a company that offers some basic marketing services to FSBO home sellers.

It’s important to note that you will generally have to pay the buyer’s agent commission upon the sale of your property. That means that you may be saving far less than anticipated as a By-Owner seller.

Cons

One of the biggest drawbacks to the FSBO process is the requirement to price your home yourself. While many FSBOs believe that they have a good handle on property values in their neighborhood, they all-too-often find that they have made one of two mistakes — either vastly overpricing their property based on bad comparable values or significantly underpricing their property. Overprice and buyers never even give the home a second look. Underprice and these sellers could leave tens of thousands of dollars on the table — more than enough to have paid a qualified agent in the first place.

Another major problem that FSBOs encounter is the limited audience that their listing enjoys. Without professional marketing materials, an enhanced online presence, and a network of real estate professionals to appeal to, many FSBOs find themselves simply hoping for someone to drive by and make them an offer on their property. From both a home security and financial standpoint, this strategy is almost doomed to failure.

In addition, FSBOs may struggle with the logistics of the home sale agreement, contract, escrow, and closing processes. Without representation or assistance, the seller will end up having to schedule showings, conduct negotiations, and prepare documentation throughout the sale process. This may leave them open to costly errors or require them to hire a real estate attorney, significantly cutting into the commission savings they were expecting.

Sell to a Cash Buyer or Investor

There are a number of things to keep in mind when deciding which of these home sale options works best for you. These include:

• Profitability: Depending on your financial situation, you may need to focus more on the potential profit you’ll make from the sale of your home. This can be especially true if you have not lived in your home for long or if you have borrowed significantly from your home equity value. If profit is your primary concern, you may gravitate toward a traditional home sale, allowing you to put the power of the open market to work for the potential of multiple offers and a higher sale price.
• Timeline: If you are working with a compressed timeline, getting your home sold quickly is probably a priority. In this case, A cash buyer may be the better option, due to the compressed turnaround time from offer to closing. Alternatively, you may want to consider a traditional sales process if your home is highly desirable or located in a particularly in-demand market.
• Experience: You may want to make your decision based on the amount of experience and market knowledge you bring to the table. While a highly experienced negotiator with a firm grasp of the legal process may feel prepared to pursue a For Sale By Owner strategy, for most homeowners the service of a well-qualified real estate professional is an essential part of a successful sale.

Whichever process you’re considering, we have the advice and insight you need to get your home sold. To connect with buyers in your market or simply to talk with one of our advisors, contact us today to schedule a no-obligation consultation and find out how we can help.

When it comes to selling your home, the internet can either be your best friend, or your worst enemy. Unfortunately, the housing crisis of 2008 opened the door for a plethora of “we buy houses for cash” scammers to enter the market, leaving honest home sellers very vulnerable. Living in today’s digital age, it is more important than ever to understand the difference between a scam vs. a legitimate offer, and what to look for when shopping for offers to sell your home. Sometimes you can even be hit with ads when you’re not looking to sell your home, leaving you wondering “Why am I getting unsolicited offers to buy my house?” Not every scam is as easy to spot as the classic “Your home is worth millions if you click now!” pop ups, but there are a few tell-tale signs of a “we buy homes” ripoff that you can look out for.

1: Upfront Costs

Say you see an advertisement for “We Buy Homes For Cash” – be it a popup ad on your computer, a sign on the street, an ad on TV, etc. – so you call the number to inquire about selling your home. If the “buyer” on the other end says there’s any sort of upfront “administrative” or “processing” fee you need to pay for them to provide you with an offer, hang up! This is a sign that they’re likely a scammer and not a legitimate broker, trying to dupe you with a we buy houses ripoff scheme.

In a home sale transaction, the money should always flow towards the seller, not away. This means that any legitimate real estate buyer should not be trying to entice you to send any sort of funds to them, even in small amounts; after all, it is you who is selling the home!

2: No Professional Details

The home buying business deals with large sums of money, so it’s critical that your buyer is able to provide authentic and legitimate credentials around their business. If they seem to be unwilling to do so, it may be a red flag that they’re trying to trick you into one of their we buy houses scams. Some easy things to look for to ensure professionalism include:

• Credentials! First and foremost, you should make sure they have certifications ensuring they have business being in the business of buying houses. Always ask yourself “Are those we buy houses legitimate?” and ensure you can confidently answer YES!
• Do they have a website? An authentic home investment business should have an established website that you can refer to, listing out their experience and referencing their buying history.
• Are they able to provide you with references? If they’re legitimate, they should be eager to provide you with some of their history in the market to showcase their authenticity and success rate as someone you’d like to do business with.
• How easy are they to contact? Are you having to go through a third party source to reach them? Are they online only with no phone number or business address to reference? Real buyers who are looking for homes on the market should be making themselves accessible and easy to reach, not the other way around.

3: Pushy Timelines

The average “We Buy Houses” process should take about 1-8 weeks. If a “buyer” starts pushing to buy your home as quickly as possible, urging you to sign immediately and pressuring you into the situation, there is definitely cause for concern. A reputable investor or cash buyer should be more interested in understanding the full scope of the situation that has led you to want to sell your home, working to gather all the information including the original build of the property, legal rights tied to the home, photos of the interior, and so on.

Afterall, they are the ones who are preparing to make a sizable offer for your property, so they should be interested in ensuring their dollars are going towards a viable business decision. Would you want to put tens of thousands of dollars into a situation you don’t understand fully? Of course not. This is why it’s crucial to watch out for the details to make sure you aren’t duped by a we buy houses ripoff scheme.

4: Waiting. Waiting. Waiting.

On the flip side, you should not be left waiting to hear back from your investor on next steps, as they may be stringing you along in one of their we buy houses scams. A genuine buyer may be looking to offer you an initial deposit as a sign of good faith or as a way to establish a baseline agreement between you for the buyer-seller relationship. Or, they may provide you with proof of funds as another method to establish their credibility as a serious offerer. The start of the relationship should work to establish credibility, trust, and intent for follow through for a mutually beneficial business transaction.

On the flip side, you should not be left waiting to hear back from your investor on next steps, as they may be stringing you along in one of their we buy houses scams. A genuine buyer may be looking to offer you an initial deposit as a sign of good faith or as a way to establish a baseline agreement between you for the buyer-seller relationship. Or, they may provide you with proof of funds as another method to establish their credibility as a serious offerer. The start of the relationship should work to establish credibility, trust, and intent for follow through for a mutually beneficial business transaction.

5: The “Gut” Check

A lot of the time, intuition plays a bigger factor than people give credit to. Home investors tend to want to cultivate a positive relationship with the seller, working to make them feel comfortable with the transaction and happy to address any questions about the process. They tend to have experience with customer service and client management, understanding how to provide a positive experience as a potential investor for your home. Unethical we buy houses scammers are out there, and more often than not, they will show their true colors if you give them the time to.

If a potential home-buyer starts to come across as brash, short tempered, or impatient, it is likely a sign that they may be one of the fake house buyers trying to push you into their scam as opposed to being genuinely interested in purchasing your home for the value it deserves. Your questions deserve to be answered, and you should always feel comfortable throughout the process without worry of being snapped at or shut down. It is well within your right to feel completely comfortable with your decision to sell before signing the dotted line.

Summary

In summary, an authentic “we buy houses” investor will look like:

• Someone who isn’t trying to impose costs on you
• Someone who is happy and eager to provide you with their credentials
• Someone who isn’t trying to get you to decide too quickly
• Someone who doesn’t leave you waiting
• Someone who makes you feel comfortable and confident doing business with them

If you’re looking to sell your house the right way and want to see how cash offers for houses are legit, reach out to one of our sales representatives at 26 Holding Group. We pride ourselves on transparency and honesty throughout our purchasing process, with a team of qualified real estate professionals who are trained in best-in-class customer service to ensure you receive the home selling experience you deserve. To learn more about how we do business, read about our process or call us at (800) 715-2410.

1. Decide if You’re Ready to Sell

This may sound crazy, but you need to ask yourself if you really want to sell. Selling a home can be emotional and stressful to some people because of sentimental value and fond memories. It may have belonged to family members who are no longer here, or the old swing in the backyard may remind you of a time when your kids were young. Some people think they want to sell, but then decide that packing and moving is too much trouble. The decision to sell can honestly be difficult, so make sure you’re ready.

2. Determine Your Sales Strategy

Having decided to sell your home, you need to pick the strategy that offers you the best opportunity to sell your house fast. Several ways exist to cash in on your home and each offers its own pros and cons.

Using an Agent

A local real estate agent is familiar with your market area and has other agents and potential clients in his network with whom to contact. They’ll do the legwork with advertising and do all of the negotiating with the buyer or buyer’s agent. But this comes at a premium – about 3% of the sales price. Some sellers feel it is worth this for them to not have to be involved, while others don’t have as much equity in their home and miss having this extra money in their pockets. Another drawback to using an agent is that he or she isn’t working only for you. With multiple clients, their time is divided and this could extend your time on the market.

Sell to an Investor

The absolute quickest way to sell your home is to contract with an investor. Investors seek homes in which they can remodel and flip or rent to others. You won’t have to worry about a buyer qualifying for a mortgage or a lengthy closing time because they operate with cash. The downside to using an investor is that you may not receive a top market value. Investors will factor into their offer variables such as listing price, price of repairs, and holding costs. So while their offer may seem low at first, it can usually end up being more lucrative because you don’t have to pay realtor and other closing fees.

Sell it Yourself

If you want to maximize the profit from selling your home, selling it yourself may be your best option. You’ll save the sales commission you would pay your agent, though you would still owe the buyer’s agent. Maximizing your profit is really the only positive part of selling your own home. Some of the challenges you’ll face are the actual elements of a real estate sale, like market research for pricing, a sales contract, disclosures, escrow, and the ability to implement and negotiate each one.

 3. Price to Sell 

You may be wondering, “Can I sell my house in two weeks?” Absolutely, you can, but you have to price it correctly and that is one of the best home selling tips you can implement. Nothing makes a house harder to sell than one being overpriced. It will sit on the market awhile until you eventually lower the price. Spend some time reviewing the prices of comparable homes around yours that sold recently, and list yours using a similar price on day one. If you want to attract immediate interest, list yours below the closing price of comparable home sales. A big advantage to this strategy is that it can result in multiple offers, which can lead to a sale price above the asking price.

 4. Clean, Declutter, and Depersonalize 

Your buyer needs to be able to visualize their families and furniture fitting in various spaces when they walk through your house. Help them make this connection as soon as they step inside with the fresh aromas of a recently cleaned room. Take everything that doesn’t have its own place in the house out of it. Clutter makes spaces appear smaller, so put extra stuff in storage or donate it. Never allow your stuff to crowd the spaces where prospective buyers may visualize their stuff sitting. Hide the cat’s litter box and put away the coins and loose papers that are on counters and dressers. If you need to sell your house ASAP, help your prospects see themselves living in it.

5. Use Neutral Paint Colors

Bold colors can make a room look nice, but they can also make a room look small, dark, and dirty. A different color in each room can make the walls seem too busy. Apply some fresh paint and use neutral colors from the gray or greige palettes. Add some colorful art to these neutral walls, and these spaces will pop. Touching up bold colors and leaving them is one of the things you should not do when selling a house.

 6. Perform Quick Repairs

It’s time to repair that dent in the drywall where the doorknob hit it, and replace that blind that’s missing a slat. Visible repairs are a turnoff to buyers and also contribute to offers below the asking price. New homeowners are eager to move in now, and needed repairs will delay moving day. Fix these things before you attempt to sell your home. However, with that said, we work with people that need to sell their home that require repairs.

7. Let the Light In 

Sunshine produces serotonin and endorphins, which are hormones that make us happy and feel good. Sunshine through the windows of neutrally painted walls makes a home feel warm and inviting. Pull the curtains back and let the sunshine help sell your house fast.

8. Entryway and Curb Appeal 

First impressions matter – especially in real estate. Freshen the paint on the front door or replace it with a modern one, and also replace the dated doorknob and hinges. Freshen the caulk around the door and the street numbers if they’re attached near the door. Make sure the doorbell is working and replace it if it’s lost its shine.

9. Boost Your Curb Appeal 

People will see your lawn before they make it to your door. Pressure wash the driveway and sidewalk. Replace or remove any dead flowers or shrubs. Make sure the lawn is watered and mowed regularly while your house is on the market because your buyer could be inside any of the cars that pass by daily.

10. Set the Stage to Sell Quickly with Staging 

We mentioned earlier that your goal is to help your prospective buyers to be able to see themselves in your home. One of the best ways to convert a prospect into a buyer is with staging. It’s difficult to gauge a room’s size when it’s empty, so hire someone to stage the whole house for you. Yes, it costs, but it adds much more value to selling your home than it will cost. Some people ask, “How do I sell my house in 5 days?” Proper staging can do it.

11. Hire a Professional Photographer 

It may be tempting to take photos of your home yourself, but don’t. Photo quality is very important because prospects will see your house online or in pamphlets before they see it in person. Professional photographers have the equipment and, more importantly, the eye for the best shots. They’ll take dozens of photos and only charge you a few hundred dollars. This is money well spent as we continue to make good first impressions. Be sure to negotiate a 3D tour as part of his package so internet viewers can get an early look at your home.

12. Utilize Social Media and 3D Tours 

There’s no better form of advertising than social media and it is free. Upload your photos and your 3D tour to all of your platforms, and ask your friends to share with their friends. Social sharing can generate early momentum when you want to sell your home fast.

13. Write a Great Listing Description 

High-quality photos will sell your house fast, but you need to be able to convey to the viewer specific details. Writing a great listing description is vital to maintaining a viewer’s interest. They can only see what’s in the photos and may not notice that the countertops are granite or that the flooring is a custom product. Details about any warranties and the age of the paint, roof, and appliances must be noted as well since photos can’t illustrate this.

14. Timing of the Sale 

Statistically speaking, the months of May and June are the best times to sell your home with June being the best. Lawns and shrubs are green and people have more time to get out and look before the blistering summer heat arrives. If you were trying to sell a house fast in a slow market, these months would give you the best chance. However, a specific season isn’t the only aspect of good timing. Taking advantage of a hot market or a lack of inventory in the price range of your home can also be helpful if you need to sell your house fast.

15. Be Flexible with Showtimes 

You can’t sell your house if you don’t show it, so you have to be available and flexible when someone calls. This means showing it on your lunch break or late in the evening to buyers with a typical 9 to 5 job. Other people, especially those who live out of town, may only be available on weekends and holidays.

16. Set Yourself Apart 

Another tip for selling your home is to make yourself and your home memorable. Use a focus point of your home, such as a kitchen island, as a place for potential buyers to let their guards down a bit by having cookies, pretzels, bottled water, and other snacks available. If you are showing the home yourself, dress nicely, behave professionally, and present your beautifully staged home. Place professionally printed brochures that contain color photos, listing descriptions, and contact information near the snack tray so prospects are encouraged to take one.

17. Ask for Feedback 

As you’re wrapping up each tour, ask your shoppers for feedback on the house and price. Remember, feedback doesn’t mean that something is good or bad; it’s just feedback, so listen and write it down. Feedback lets you know how your home compares to the others they have toured. Pay special attention to repetitive feedback as this will make you aware of common thoughts among your prospects. For example, if everyone comments that the light fixture in the foyer is dated, replace it. The one thing you should not do when selling a house is be offended by the feedback and turn it into a debate.

Selling your house is a huge decision in your life. With so many things to consider, it can easily become overwhelming and stressful. Selling to an investor helps to eliminate the stress by making the process simple and reducing the number of items you have to worry about. Learn how much you can make today on the market versus selling to an investor by giving us a call at (800) 715-2410 for your free, no-obligation offer.

Give us a call: (800) 715-2410