Need to Sell Your House Fast? Find Your Local Real Estate Investor!
Do you want to sell your house fast? Do you need quick cash for your house? Selling your house fast for cash can be a difficult task to accomplish. Should you list with a Realtor? Try to sell “for sale by owner?” What are those “we buy houses” signs all about? What is my best option to SELL MY HOUSE FAST? Let’s take a look at each of the possible solutions to sell your house fast for cash.
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The first option that most people think about is selling through a Realtor. This is generally not a FAST solution. The average days on market in this economy is over 120 days. People often have the misconception that listing with a Realtor means you will get a full price offer and all that you have to pay is a 6% commission. Reality is much different.
- After waiting 3+ months (again, not fast), the best offer you will receive is likely 5-15% below “list price.”
- The buyer’s mortgage company will likely ask you to make repairs before they approve the loan ($10,000? $50,000? More?).
- After the long wait and you paying for the repairs, you also will pay a 6% commission, 3% seller concessions, and 2% closing costs.
- Adding up all of those percentages and costs means your true net profit is a lot closer to 75% of the list price.
Maybe selling through a Realtor is not for you. You can always try to sell your house “for sale by owner.” Selling “for sale by owner” is for the do-it-yourself crowd. Are you up for the task? Let’s review exactly what this entails.
- You will have to do a lot of marketing: put signs up in your yard and around your neighborhood, update and maintain advertisements on multiple websites, pay for ads in the local newspaper, take hundreds of pictures, and the list goes on and on.
- After starting to market your house for sale, your phone will start ringing. Are you prepared to answer 5, 10, 25, or 50 phone calls per week? When will you find the time to talk to the buyers – nights and weekends?
- Showing your house to complete strangers can be very stressful. Many will just be nosy neighbors who want to see what other houses in their community look like. How will you weed out the “just looking” crowd from the serious buyers?
- You will eventually receive an offer that you find acceptable (possibly much lower than you originally anticipated because you just want to be done with the stress of the process!).
- There are still hurdles to get through the closing. If the buyer is getting a loan, all of the appraisals and inspections apply just as if you had listed with a Realtor.
- Is this process worth all the stress and headaches?
There is also a third alternative. You can sell your house fast to a professional real estate investor. Have you ever seen those “we buy houses” signs on the side of the road? Those signs are usually placed by real estate investors. When selling to a real estate investor, you can sell your house fast, sell your house for cash, and leave the headaches behind you. Real estate investors will likely make you a variety of offers. Let’s examine each of these below.
Investors will make you a cash offer. Because investors provide a simple, hassle-free solution to sell your house fast, they only buy houses for cash when the seller is willing to offer a discount on the purchase price. There are many benefits of accepting this offer.
- Investors buy your house “as-is” so you do not need to make any repairs yourself.
- Selling to an investor means a fast closing, most likely within 30 days, and possibly faster.
- Some investors even pay all the closing costs!
- You just sell your house fast and collect your cash!
Investors will also make “creative” offers. Creative offers allow investors to pay higher purchase prices, but the seller must be flexible. Examples of creative offers are “seller-financing,” “subject-to,” and “lease-option.” These methods allow investors to pay closer to the actual retail price of the house.
- Seller-financing is when the seller agrees to take a small down payment and then receive payments over time until the full purchase price is paid.
- Subject-to is when the investor simply takes over the payments of the seller’s existing mortgage.
- Lease-option is when the investor leases a house from the seller, so long as they receive an option to purchase the house at a later date.
Do not discount these creative methods because they take away the financial headaches of double mortgage payments, or they allow the seller to receive the benefit of monthly income for a period of time.