Perhaps the most exasperating part of selling a home is trying to decide to sell by owner, or use a realtor. There are pros and cons with both sides of the coin. Many people start out in a situation where they are simply ‘testing the waters’. This can be dangerous. For example, people who are testing the waters often price their home above what they actually need for the home. They figure it will give them negotiating room. If no one is interested, they simply do not sell. What they don’t realize is there may be interest in the home. When a potential buyer sees a marked up price, they have a tendency to go to the next similar home on the list. By the time you decide to drop the price, they may have already purchased another property. This decision to sell your home is a business decision, not a game, and should be handled like a professional business decision.
If someone is trying to sell their house quickly, they sometimes think that doing so through a Realtor will give them the fastest way to sell a house. This is not always true however. A lot of it depends on the Realtor that they choose. If you choose one that is busy, your house will just get put into the mix of all of the other houses that they are trying to list. If they are not busy, they may not show the house like they should unless they are pushed to do so by you. Also if the types of listings they do have are different from your house they might not really understand what it is that someone looking to buy a house in that range is searching for.
The commission that goes to the Realtor is the largest cost involved with doing business with a real estate agent. Most Realtors will ask for somewhere between 4-6%, but in some rare cases, might ask for up to 10% of the final price of the house. If your property is already below what you owe on it, the bank will not accept anything that includes Realtor fees. This fact alone can cost you a sale. If the Realtor is unwilling to lower their fees to help sell the house the homeowner could lose out on offers and ultimately selling the house completely.
Another reason that a Realtor can cost you a sale is because of the requirement many of them have to sign a three to six month listing agreement. After that, they might try and tack on another three to six months to avoid getting cut out of the sale of the house. If an offer cannot be worked out with the Realtor and the fees they are charging, you could also lose a sale this way as well. Realtors of course have expenses associated with showing a house like advertising, signs, and gas so they do not want to be cut out of a sale that they have put their time and money into already. However if the seller finds someone without help from the Realtor should they be penalized by a contract that is not in their best interest.
Signing any type of binding legal agreement should always be discussed with an attorney. If the selling price is on the border of what is owed on the house, the mortgage company might require that they approve the Realtor before a contract can be signed. Talking with all involved parties can stop you from headaches down the road when you are trying to sell the house.
When someone asks ‘can I sell my home fast and for cash’ they should examine all possible avenues before they make their final decision on what they are going to do. There is a lot involved with this type of transaction so everything needs to be reviewed before any choices are made. You do not want to put yourself into a situation that you are not going to be able to handle yourself.
The biggest challenge is knowing how to sell a house quickly. If you don’t know this, you probably won’t get far. Visit our home seller blog for information on the cost of selling a house and preparing for a home sale.
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