If you want to sell your house, should you list it with an agent, or should you sell directly to a real estate investor? The best answer is . . . it depends. Everyone’s situation is unique, and You have to look at what is best for you plus what are your options. So let’s look at some of the pros and cons of listing vs. a direct sale to a real estate investor in Houston or all over Texas.
Listing vs. a Direct Sale to a Real Estate Investor in Texas
Listing With an Agent
The most popular way to sell a house is what is called the traditional route. This involves working with a real estate agent or some times Broker to list and sell the house. Agents are educated in the one process (listing your home on MLS), they know the market, and have access to the MLS. This gives them access to a huge market of potential buyers, They will handle the marketing, and can help you get the best price if you have the time.
The primary cons of using an agent are that you will have to pay the agent’s commission 6% and that the process can take a long time. Also the buyer tends to ask for things done to the house that you have to pay for. Because most agents confine their marketing efforts to traditional marketing FHA, VA or Conventional loans, selling your house could take anywhere from six months to a year. You will also have to endure multiple showings at all times of day or night, and there’s always the chance that a sale will fall through because a buyer can’t get financing.
In addition to having to pay an agent’s commission out of the sale price, most sellers often wind up having to pay part or all of the closing costs to close a deal. This means you will more then like get only 90% if not less of your sales price. On a $200,000 house that is $20,000 and that is a lot of money.
A Direct Sale To A Real Estate Investor
Now for many people considering listing vs. selling to a real estate investor in Texas, the latter is often the better option. The biggest benefits of selling directly to a We Buy Houses company or real estate investor like The Aida Group is that they usual pay cash and close quickly, often as little as just one week. Also, most investors will pay 100% of closing costs, and you won’t have to pay any commissions to agents. This means you get all you sales price. They also have unconventional ways of selling you house like Owner finance, Rent to own to name some of them. These ways can make the home seller more money over time if they want to.
In deciding between listing vs. direct sale to a real estate investor in Houston, keep in mind that investors are buying houses in order to make a profit, either by flipping or renovating and renting. And this means that their goal is to buy discounted houses in order to realize an ROI. So your sale price when selling directly to an investor is likely to be lower than what you’d get when listing with an agent. But some time the investor has ways to sell your house that the traditional realtor doesn’t know about.
Carrying Costs
One thing to keep firmly in mind about listing vs. direct sale to a real estate investor in Houston or all over Texas is the carrying costs when listing with an agent. These are the costs associated with owning and maintaining a house while you’re trying to sell it – for example HOA dues, mortgage payments, property taxes, utilities, Lawn maintenance, insurance, and so on.
So although you may get a higher sale price by going through an agent, the whole process can take so long (up to a year in some cases) that your profit may be eaten up by these carrying costs. And although selling to an investor may mean a lower sale price, because it is much faster, you may ultimately walk away with more money in your pocket.
There are both pros and cons concerning listing vs. direct sale to a real estate investor in Texas, and the best option depends on your unique situation and needs. If, however, you’re new to selling real estate, it may be difficult to make that determination.
That’s an area where the real estate investing professionals can provide some guidance. To discover more, give us a call at 832-210-3088 or fill out the form.