Although it seems like a lucrative endeavor, selling your home is a risky venture. Not everybody who sells is doing so willingly. Sometimes, sudden life crises require people to open their house to the real estate market. Such plights include economic recessions, job loss, and an ongoing rough divorce.
Many factors go into consideration in terms of home selling. There are mistakes you need to avoid (read more) and pitfalls you need to be prepared for. You cannot just expect to list your home then have a buyer after a month. There are several legal processes, meetings, contracts, and inspections that go into selling houses. You also need to be emotionally committed and financially prepared for this venture.
But during unexpected life circumstances, people never get to have the luxury to consider their options during house selling. There is no time to be emotionally prepared when you are facing tons of debts on top of being jobless.
So, here are three ideal options to take in deciding the best way to sell your house.
Option 1: Hire a real estate agent
The rise of e-Commerce made the real estate business harder to navigate. But real estate agents are still the go-to of most home buyers and sellers. Amid the technological shift, the real estate industry stayed true to its traditional ways. And who better navigate it than the professionals themselves.
Real estate agents have a broad knowledge of the local market regarding estate prices. They already established several networks and connections to fasten your home selling process. They also have access to hundreds of house listings and sales data. They can match you up with the potential buyer of your preference.
Agents can guide you through the legal works, inspections, and repairs. Especially during the negotiation process. He has your best interest at heart, thus offering a reasonable price that matches the worth of your property. Also, realtors have a keen attention to detail. They are experts in reviewing contracts and paper works. They can pinpoint even the tiniest issue that can cost you hundreds of bucks later.
Their skills are incomparable and will make the 6% commission worth it.
Option 2: Home buying companies
Home buying companies are the new competition in the real estate business. Recently, there has been an influx of property buying companies in the market. You may have seen some of them on several ads with the sign “We Buy Houses” or “Homes for Cash”.
Home buying companies appeal to many home sellers because of several reasons. One is a fast transaction. When you are working with a real estate agent, closings can stretch from months to years depending on the current market. While in home buying firms, it can be done from 7 days to two weeks tops.
One example is the Stewardship Properties home buying company. They are one of the many property buying firms in the city of Oregon. Their services attract most homebuyers because they can close a deal in less than 14 days. All you need to do is call them, submit your address, and describe the condition of your house. They will review and handle all the legalities and paper works.
Then, they will give you a cash offer regardless of any maintenance and repair that your property needs. After that, you can get your proceedings in cash with no commission fees and hidden charges.
Individuals who are going through unpleasant life situations can benefit from the easy transaction that home buying firms offer. They accept properties that are under foreclosure and probation.
Option 3: For Sale by Owner
Or more popularly known as FSBO. It is the process of selling your home without the help of any agent, company, or firm. You are braving the real estate market on your own. People usually resort to doing this because they believe that they can save thousands of dollars on commission rates.
FSBO-ing can be practical, but it is not without consequences. Selling on your own is a daunting process since all the heavy responsibility falls on you.
Before everything, you need to conduct extensive research on the current property values around your area. You need to take into account the dimensions of your property as well as the number of bathrooms and miscellaneous rooms before deciding on a price.
You also need to maximize the use of the internet to build your network of connections. You can sign up on online listings, make online advertisements, and use apps in marketing your property. This can be the hardest task in doing FSBO. Unlike realtors, you do not have access to listing data that connects home buyers and sellers. You also lack the connection (to other brokers) that agents have through years of experience.
After doing many open houses and showing, another hurdle to watch out for is the preparation of legal documents. Even if you are a first-timer, you cannot risk making mistakes and learning as you go. A tiny mistake can cost you huge amounts of money. It can cost you a lot more than the 6% commission fee. Luckily, brokers made a database called a Multiple Listing Service to help you navigate the real estate market.
MLS is a listing database that connects home sellers and buyers. Regardless if you are a realtor, broker, or an FSBO, it will show you home listings that can help you decide on the proper pricing of your property. Additionally, it contains accurate information on how to market a home and manage the legalities and paper works in closing the deal.
FSBO does have a lot of advantages, like being able to save money, operate on your own schedule, and lay down a price you think your house deserves. You have all the freedom to do everything that is advantageous to you.
But according to statistics, FSBOs fail more often than not. 91% of home sellers still work with a real estate agent or use the services of a home buying company.