Should you List with a Realtor or Sell to a Real Estate Investor?

If you’re thinking of selling your property, you have choices. Before you choose, know the difference between selling to a real estate investor and working with a Realtor®.

Hiring a Realtor®

Hiring a Realtor® has benefits in that the agent will assist the seller in all aspects of selling a home. Reputable agents know their markets well and use MLS (Multiple Listing Service) for advertising the property to the largest source of retail buyers.

If this is the route you choose to take, it’s important to work with a Realtor® you can trust. Everyone knows at least one or two Realtors® and it can be tempting to work with a friend or family member. However, be sure the person you choose is able to do the best job. Your home is likely your largest investment and going with the wrong person because you feel obligated can cost you tens of thousands of dollars.

If you’re in a hurry to sell, working with a Realtor® may not be the way to go. The process can take 6 months or more with a financed purchase. Consider that during a retail sale you are still responsible for paying the monthly cost of the house while it’s under the agreement and in the financing, title and inspection stage. Depending on what your monthly expenses are, that could be a pretty healthy sum.

Don’t Realtors® work for FREE?

Engaging the services of a Realtor® is very expensive. You don’t pay if you don’t sell, but when you pay, you really pay. Let’s say the commission you’ll pay the agent is 5%. Depending on the price of your home, that could set you back thousands.

Some sellers believe they will receive a higher price and ultimately make more money on the transaction if they hire a real estate agent. That may be true on the front end, but often times the net amount is much when closing costs, carrying costs and commissions are considered.

The bottom line is this; hiring a Realtor® can be beneficial in the right situation. Ask yourself:

• Is there enough room in the price to pay the fees?

• Can you afford to maintain the monthly overhead while you wait for your home to sell?

Working with an Investor

There are advantages in working with an investor depending on your situation. There are no contingencies or inspections so you won’t have to worry about what the home inspector will find after they’ve been through your home. The best part of this is that you won’t have to go back and fix anything in order to sell. Sell as-is.

You won’t lose sleep wondering if the bank is going to approve the buyer’s loan, only to discover in the eleventh hour that the deal has fallen through. You also maintain flexibility with your closing date. Selling to an investor means you can close when you’re ready. Many investors pay all of the seller’s closing costs as well.

Are there no drawbacks when selling to an investor? There is one: when you sell to an investor, you are selling at a discounted price, but you do that in return for convenience and flexibility.

When selling, take your time and make wise decisions. Before you choose, know the difference between selling to a real estate investor and working with a Realtor®.