Posted about 2 years ago

Should You Use A Realtor or Investor To Sell Your Home?

The realtor brand over the years has been instilled in our minds as the go to guy when it comes to real estate expertise and knowledge. When it comes to selling a home, the first call a home owner makes is to a trusted realtor. Many homeowners are not aware of any other options other than calling a realtor when it comes time to sell their property.

The landscape is changing though. When it comes to selling one's home real estate investors are a viable option and are gaining popularity.

If you are in a hurry to sell your home rather quickly, which of the two options is likely to result in the best outcome?

The Advantages of Investors Over Realtors


Investors can help homeowners sell a home quickly, where the payment in cash will be rather quick. Typically, the home will be purchased in its immediate condition referred to (As Is), and a lot of times without the investors having a walk through the home. Therefore, this will be a great advantage to the property sellers as they will avoid final repair costs to the property before moving out.

Another, great advantage to having investors buy the property is that they usually pay in cash. This is a great burden lifted off the shoulders of the seller, as it mitigates waiting periods relating to any financial restrictions on the sellers or property value and any encumbrances that may exist on the home. Moreover, as investors will buy the property through cash, the transaction is not based on appraised value or subject to conditions related to acquiring financing on the property.

As a result, the traditional processes that are a-typical when selling a home are bypassed and therefore the time lag is substantially reduced. It is not uncommon for investors to close the deal and purchase a property within 7 to 14 days. Furthermore, if they are seasoned investors, the closing of the deal will take even less time than that.

The sales process can be somewhat slower when using a realtor, as a timeline of 3-4 months before the deal is closed and the home is sold is not uncommon. There are guidelines and due processes, which are fixed - causing a longer turnover time for the sale to occur and additional expenses.

As an example, if a property is valued at $350,000 and is sold through an agent, a 3% commission would get paid to the realtor as a commission for transacting the sale of the property (this is a cash outlay of $10,500) above any further repair costs and applicable transfer taxes.

If the home takes a longer period to be sold, the homeowner is still liable to make payments on mortgage, insurance, taxes and any other associated expenses that are related to ownership of the property.

The Advantages of Realtors Over Investors


A realtor is a licensed professional that is trained in buying and selling homes. They will perform their due diligence in providing a level of assurance that potential scams and wrong doings will not occur. They also have a lot of information at their fingertips regarding trends in the market and by neighborhood, further making them a valuable resource when selling a property.

On the opposite side of the spectrum, investors are not required to be licensed to engage in the purchase of a property. The risk of this is that property owners are selling their homes to corporate entities and/or individuals they have very little knowledge of. Unfortunately this means that anyone can put up a banner or a sign claiming that they are an experienced investor capable of purchasing properties.

Due to the lack of assurance in the qualifications of investors and the potential possibility of financial scams, the use of a qualified licensed professional might be the better option for the average homeowner. Not to mention, when dealing with investors, cash is offered for the property as is, and the offer given is unlikely to be above market value.

Investors Can Be The Better Option for Selling a Home

By using an investor, a property owner can sell their home rather quickly and receive a respectable amount of cash. An investor will buy a home regardless of the home's current condition, which shields the homeowners from possible expensive repairs, upgrades to the property, mortgage and tax fees, and realtor's commissions.

Additionally, a homeowner can reduce their risk of dealing with investors through performing research, reference checks, as well as contacting the Better Business Bureau. Through a little due diligence on the part of the homeowner, a property can be sold rather quickly and profitably by using a reliable and trustworthy investor.


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