Selling a house doesn’t need to be a complicated process. When the right time comes to sell their home, property sellers face multiple options. Two of the most popular methods are to utilize a licensed realtor or a cash home buyer. Each route offers unique benefits depending upon the seller's real estate needs, but for most individuals, using a real estate agent will be best. This article discusses the details and advantages of selling a house with a realtor or homebuyer.
Selling with a Real Estate Agent
A real estate agent is a licensed professional held to high standards legally. Realtors must follow the National Association of Realtors code of ethics and comply with all laws and regulations. These professionals must also be honest with their clients and transparent about the value of each property. If an agent is dishonest or doesn’t follow the basic rules, they may be banned from having their license.
Having the agent bonded by standards is just the first benefit of using a realtor compared to a cash buyer. Agents know the local real estate market to value the home correctly. They use a massive agent network called MLS (Multiple Listing Services), a platform where agents list their clients' homes for potential buyers' agents to see. When using an agent, they handle every aspect of the transaction, including negotiating and all the legal documents that must be completed to finalize the sale.
Sell a House with a Cash Home Buyer
When selling your home to a cash buyer, you can close on the house quickly without making any home repairs. A cash buyer typically closes on the house within three weeks, requiring no inspections or cleanouts. The only issue is that cash buyers who purchase property off-market require the home to be under the actual value, so there’s money left on the table. These investors usually flip these properties to maximize profit from their investments.
Benefits of Using a Realtor
Using a real estate agent allows homeowners to receive the most money when selling and proper guidance through a complicated process. Some other benefits of using an agent:
- Proper evaluation and pricing: Real estate agents can price homes accurately using comparative market analysis (CMA). CMA is a tool agents use to determine a home's value by comparing it to similar homes within the area, usually within a quarter-mile to half-mile radius, depending on the home's location.
- Experienced negotiators: Agents handle every aspect of the sale, including negotiating the terms of the sale with the buyer's agent.
- Proper documents: Realtors use legally binding contracts to protect all parties involved. The agent would work closely with a title company to clear the title for sale while handling other state-required documents.
- Agents handle showings and staging. Property walkthroughs can be a nightmare for sellers, especially those with pets or children. When using an agent, they conduct the showings to potential buyers. As technology continues to grow, agents can use virtual staging. Virtual staging helps buyers imagine the house's potential and eliminates property showings since the photos can adequately present the home.
- Connections within the industry: Agents have a vast network of professionals to assist with the real estate process, including lenders, home inspectors, contractors, and any other individual who can help along the way!
- Pro suggestions for repairs: Realtors have experience knowing what updates or features help homes sell quickly and for the highest amount so that they can suggest necessary repairs. Home renovations are costly, so it's essential to have a realtor explain which repairs/updates may not be worth the investment.
The potential downside to using a Realtor
Although using a real estate agent Philadelphia has very few downsides, weighing the pros and cons before selecting each home-selling route is essential. The only issue most sellers have with utilizing an agent is paying the realtor commission on top of other real estate fees. A real estate agent's commission is 4-6% of the sales price.
Homeowners can avoid the commission by selling directly to a home investor but risk leaving more than 6% on the table. Using an agent gives the best chance of receiving the most money, so the realtor's commission covers itself most of the time.
How to Choose an Agent
When selecting an agent, you must ensure you choose the right realtor. Not all agents are equal; some can produce better results than others. When deciding upon an agent, one should consider certain factors, such as experience level. You would want an agent with enough experience to handle the home listing properly.
A solid agent communicates clearly and can explain the selling process and other details. Request an agent's credentials. Similar to exploring their experience, it’s important to view some of their agent reviews from previous clients. Usually, online Google reviews provide a general idea of how the agent conducts themselves and their abilities to properly assist with selling any home.
Lastly, ask the agent about their plan to sell the home. You want an agent with a clear plan that can provide a successful transaction. A well-prepared agent can make all the difference when selling property.
Using a Realtor to sell a house
Using an agent may provide the best results and highest offer possible. The realtor can handle every aspect of the transaction from start to finish. Agents can correctly price homes using tools such as comparative market analysis and multiple listing services (MLS) to advertise the house to buyers' agents.
Realtors have the experience and connections to simplify a potentially complex process. The best way to find a qualified agent is through referrals; personally knowing an individual who can vouch for the agent can go a long way. Another way to find an agent is to utilize the internet, considering their reviews.
At times, using a cash buyer may be appropriate. That's why it’s vital to consider each home selling option and speak with multiple agents to determine who has the best plan to assist through the real estate process while achieving the most profit.
