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If you are considering selling your home, you may wonder what the best option between dealing with a cash buyer in Philadelphia or a real estate agent is. Selling a house is a huge decision you must make right. However, you also want to ensure the process is smooth
Depending on your unique situation and what you want to get out of your home, you can decide to sell with a real estate agent or a cash buyer. For example, a cash buyer might be most suitable if you are considering selling your house fast.
But what does it take to sell your home using an agent or a cash buyer? This article explains the process of selling your home with a cash buyer and its pros and cons. We also did the same for dealing with an agent. At the end of the post, you will understand both processes and also be able to make the best choice.
Selling your home for cash
People concerned with how to Sell their homes fast usually sell for cash. Between getting a buyer for your home and closing the deal, there are processes involved in selling your house for cash. Usually, to sell your house in cash, you have to:
Get your home value estimate
The first step in selling your home for cash is knowing its worth. This is possible through a home value estimate. Knowing the value of your home will help you make a beneficial negotiation and avoid selling it for less than it is worth. Knowing the home’s value will also help you set the price realistically.
There are many models for evaluating the value of your home. For example, you can ask a professional to assess your home or use online tools. Depending on the location, the age of your home, its size, and the market state at the time you are selling, you will get an estimate that will reflect your home’s worth.
Sort out all requirements
Before you can sell your home, there are some requirements you need to meet. There are rules regulating the sales of homes in specific areas. Also, your buyer may have some preferences that you will have to sort out. There are some laws regarding the information every home seller must provide to the buyer before proceeding with the transaction process. You must also do a lien search before the home can be sold. Depending on your municipality, it can take a few days to four weeks.
Handle the title
Ensure your home title is cleared before you list your home for sale. And ensure you handle every situation that can reflect on your title and delay the sales process. For example, conditions like unpaid loans, taxes, liens, and other financial responsibilities should not appear on the title.
Doing the title search before the transaction and clearing every outstanding payment is advisable to ensure a smooth transaction process. And also save time.
Get a cash buyer
Next is getting a buyer for your home. There are many cash buyers in Philadelphia to work with. Some of them are:
Franchisors invest in real estate, usually buying homes as-is and paying in cash. These buyers will take some percentage of the money to cover the repairs they do in the house. If your house is not in good condition, these are some of the buyers you should consider selling to.
These buyers go for homes that require minimal repairs. They offer more money for homes than the franchisers do. They will charge a percentage of the sales cost, which can be either 5 or 6% of the sales,
● House flippers
These buyers are ready to buy homes in any condition. Then they will renovate the houses and sell them off. Usually, flippers offer to pay 70% of the home’s value after repairs. In addition, they will subtract repair costs from the same 70%.
● Buy-and-hold investors
These are home buyers who buy houses and put them up for rent. They only sell off the houses after they have satisfactorily appreciated in value. These buyers make payments based on the rental value of the home. As such, it may be easy to calculate your gains from the sales.
● Individual buyers
These are people who buy homes from sellers on their own. They may purchase the homes for their usage or sale.
● Trade-in companies
These are companies that buy houses from people moving into new homes. What they do is to help home sellers move into their new homes before they can sell their old homes. This way, they can immediately complete the transaction process before moving into their new houses.
With the number of home buyers available, it is advisable to work with the one you can trust. Also, consider the transaction process, whether it is easy or too complicated.
Reach an agreement with your buyer
Once you have a buyer for the house, you must negotiate and reach an agreement before the transaction can be finalized. Before you get a deal with your buyer on the price of the house, there are essential factors to consider. Some of them are:
● The home’s condition
The home’s condition will determine how much will be offered for it. If your house is in reasonably good shape, then you should get a price close to the market value. However, if your home requires some repairs, it is advisable to factor in the cost of the repairs and accept a beneficial offer. If there are repairs you can carry out cost-effectively, it is advisable to do so before the transaction process, as this will improve your home’s value.
● The terms and conditions
Different buyers have different terms when making an offer. For example, some buyers must inspect the house before making an offer. When home buyers check the house and find some faults that require a substantial amount to fix, it can influence the offer they make for the place. On the other hand, some buyers will not inspect the house, but they will offer a low price to cater to repairs they will make.
● The Integrity of the buyer
Ensure you are making transactions with someone trustworthy and with a good reputation. You may demand proof of funds and ensure the buyer can pay for the house. Consider whether the buyer will deposit before completing the transaction process. Also, provide the documents to be signed are legal and but consider involving an attorney in closing the deal to ensure the copies are in order. The value is completed in everyone’s favor.
Sign the document
You will sign the necessary documents when you have reached an agreement with the buyer, you will sign the required documents. The contract usually has such details as the property being bought, the price, the amount deposited, the remaining payments, and the transaction date. Before signing the document, ensure you review it properly and are okay with every aspect.
Pros of using a cash home buyer
● Fast sales
Unlike selling your house with an agent, selling to cash buyers in Philadelphia is usually faster. The transaction is between the home’s owner and the buyer only, without a third party.
● Ensured certainty
A level of certainty comes with selling your home for cash. In financed sales, the process can be longer because the buyer would have to go through the process of getting a loan and signing all necessary documents. And they may still need to get the loan. Most mortgages usually take months to finish up the whole process.
● Requires less effort
If you are selling your home for cash, you do not have to bother about staging the house and doing multiple showings and inspections. Instead, the process is straightforward and easier to complete.
Selling your home for cash means you do not have to worry about paying for concessions, commission, and even the financial commitments that come with selling a house the traditional way.
● Flexible process
The process of dealing with a buyer is more flexible. As a result, House flippers and investors usually have more flexibility in their operations.
● Option to sell as-is
If you are selling your home for cash, you can sell it as-is to avoid bothering yourself with repairs. Cash buyers are most likely to buy a home as-is than real estate agents.
● Lower price
People who buy homes for cash usually pay lower than the market price. They want to make a profit and generally make offers that can leave them with significant gains. While you will be selling your house quickly, it would be letting go of a huge amount of money.
● It may be risky
In selling your home for cash, there’s a higher chance of being defrauded than when you are selling the traditional way. This is because some home buyers will not offer to see the home and will not communicate with you in person. When this is the case, you have to be careful.
Selling your house using a real estate agent
To sell your home with an agent, you have to:
Get to a trustworthy realtor
Ensure you get a real estate agent that you can trust. It is helpful to ask your family and friends for recommendations. This helps to secure you against unfavorable situations. It is also recommended to look into the history of the real estate agents you want to hire. Some factors you should look into when choosing an agent include:
- Experience- Ensure that they have a good reputation and experience. A real estate agent with years of experience will likely have a smooth transaction process with you.
- Expertise- Ensure the agent is an expert in home purchases. It is always the expectation that the agent you work with is familiar with your environment and the market.
- Good customer service- In the transaction process, how well the real estate agent treats you will determine how he will treat you going forward. You do not want to work with a realtor who will disregard your concerns.
Agree with the real estate agent
The agreement is vital when selling a home with a real estate agent. It is advisable to ensure you agree to include the commission fee. Although the home’s value can determine the commission fee, some real estate agents would want to take massive commissions.
Get the price for your home
You will work with your real estate agent to get the price for your home. While you should ensure you are not getting a price at least the market value, avoid overpricing the house, as this may lead to a longer waiting time. Professional realtors harness available market data for measuring the prices of homes.
Prepare your home for sale
To prepare your home for sale, you must clean it to make it look its best. Decluttering is helpful for making the house look more prominent. Fix every fault and ensure the house is in good condition. This will improve its market value as well as enhance the speed of sales.
Stage your home
Staging your home involves dressing it with appropriate decor and furniture and taking good pictures. This will make buyers find your home attractive and show interest in it.
Advertise your house
Once your home is ready, you must advertise it to potential buyers. Some methods of promoting your home include:
- Photography- A good photograph of your home will make it more attractive to buyers. You can have a professional take the pictures to ensure they look perfect.
- Virtual tour- Giving buyers a virtual tour will give potential buyers a better idea of the house’s appearance. It shows them every nook and cranny of the house, and this can make it sell faster.
- Social media– Social media can enhance your home’s visibility. If you agree with your realtor, you can use social media for marketing.
Accept the offer
You will reach an agreement with your real estate agent on the offer. Then, you will sign the necessary documents to finalize the sales if the price is okay. Before signing any document, ensure you have read and understood it.
Pros of using a realtor
Selling your home with an agent allows you to work with an experienced person. If it is your first time selling a home, you need an expert to walk the process with you. Their professional input can go a long way to smooth your sales and help you avoid making fatal mistakes.
Agents market your home and direct buyers to it. They list your home on platforms where they can get buyers’ attention.
Using real estate agents to sell your house means getting guidance on essential areas. For example, they can guide you in staging your home, getting the right photographer for the pictures, and getting an appropriate price for the home.
Real estate agents ensure your negotiation with potential buyers are productive.
Agents usually take 4 to 6 % of selling cost as a commission
selling your home with a real estate agent requires that you repair every fault.
It may take months before your house is sold
Also, the agent determines the selling price.
Significant differences between selling for cash or with an agent
There are differences between selling your home for money versus selling it using a real estate agent. Here are some differences to keep in mind:
The home’s condition
The condition of your home is a huge factor when deciding whether to sell for cash or to sell using a real estate agent. If you are using a real estate agent, you must ensure the home is in its best condition. You will have to stage your home, and it will attract buyers’ attention if it is appealing enough. Therefore you will have to invest in renovations. Buyers may offer low prices for the house.
Selling your home for cash will attract buyers even without any renovations. You can sell your house as-is and even without staging it. So, if you do not have the money to invest in repairs, selling your home for cash is better.
The selling time is another essential factor to consider when making a choice. If you are selling with a real estate agent, it may take longer before your house is sold. You must contact the agent, list your home for sale, and wait for offers. In addition, closing the deal may take longer than you think because different parties are involved.
Whereas if you are selling your home for cash, you must contact the company and get your house examined. Then they will make an offer, and you close the deal if satisfied with the proposal. If you are selling slowly, consider trading with a real estate agent. However, if you are pressed for sales, you may want to sell for cash.
Choosing between cash buyers and an agent
Now that we have discussed what it takes to sell your house by cash and with the real estate agent, making a decision should be easier for you. You would have to weigh your options and consider where they lie most.
You may ask yourself critical questions, like how pressed are you for money now? Are you in a hurry to sell? Do you have the money and time to invest in renovations? Your response to these questions will help you determine which option to pick.
While making your choice, you may want to pay attention to some essential areas, Including:
● The time of year you are selling
Before you sell to cash buyers or involve a real estate agent, ensure you sell your house at the right time. The time of year you are selling can affect the market performance and the cost.
● Your time and schedule
If you are a busy person and do not have enough time to devote to the process involved in selling your house with an agent, you may want to consider trading for cash. Selling your home with an agent requires a more comprehensive approach and effort. If you are selling for money, it takes a shorter time and less effort. This is because while you have to stage your house if you are dealing with an agent, you can sell it as-is to a cash buyer.
Deciding whether to sell your home for cash or with a real estate agent requires some thought. We have outlined what it takes to sell your house for money and what it takes to deal with a real estate agent. Selling with a cash home buyer requires less time; you do not need to stage your home, and you can sell as-is. However, dealing with a real estate agent requires your house to be in its best condition; you must stage it and pay a commission fee.
Before you make a choice, consider the time it will take to sell the house. Selling for cash is usually faster than using a real estate agent. However, if you are pressed for money and want to sell your home fast, going with a cash buyer is advisable.