When it comes time to sell your home, what is the first thing that goes through your mind? When you consider about selling your house, you probably give some thought to working with a real estate agent. That kind of response is really normal. Having said that, do you honestly believe that this is the greatest option for you? Are you familiar with the various alternatives to using a real estate agent when selling your house, in addition to this option?
There are solutions available, such as selling something on your own or perhaps selling it to an investor who specializes in real estate. Check out the following information to learn why you might want to delay the process of hiring a real estate agent and instead reevaluate your decision before picking up the phone to contact a local real estate office. Here are the three main reasons, why you should avoid hiring a real estate agent.
1- Avoid Commissions
When a homeowner decides to sell their house without the assistance of a real estate agent, they usually end up saving 6% of the profit made from the transaction. It is important to keep in mind that this is a percentage of the top-line sales price and not of your profits, even if it might not seem like much. For instance, if you are selling a home that is currently worth $400,000 and you purchased it for $350,000, the 6% of $400,000 equals $24,000, leaving you with a profit of $26,000 from the sale; nevertheless, real estate fees ate into over half of your total profits in this situation. In addition, the cost of a home in New York is so much more than the average cost of a home in the rest of the country that the 6% commission that is paid to the real estate agent comes up to a significant amount very quickly. It’s possible that paying these fees will prevent you from purchasing a new vehicle or saving enough money for a down payment on a new house.
2- Avoid Repairs and Upgrades
People will tell you that real estate agents are quite choosy when deciding whether to list a home on the market as one of the drawbacks of working with them. After all, if the house remains unsold for a protracted period of time on the market, their reputation is at risk. They can show up and give you a list of fixes or upgrades they want made before taking on the listing, saying these things are essential to selling the house. To make this house more appealing to purchasers, they can ask you to perform a ton of improvements or repairs.
Obviously, it’s simple for them to request repairs, but you are the one who must provide the funding for them. To be honest, not everyone has the financial means to invest that much more in their property, and even those who can sometimes don’t want the hassles that come with having a construction crew in their home while they are getting ready to move. Finally, you can never be certain that the money you put in the house will yield a satisfactory return.
3- Avoid dealing with Traditional Buyers
The conventional way of selling a house has several drawbacks and may cause your house to sell significantly more slowly than using some non-traditional methods. When utilizing a real estate agent, it is not unusual for a house to remain on the market for a year, especially when it comes to older or damaged properties. You will be required to leave the house spotless for dozens of strangers to walk through and tour it during this time that the house is on the market. There will also be frequent open houses and showings during this time. These retail customers are frequently making the biggest purchase of their lives, so they become quite emotionally invested in the entire process and demand perfection.
With non-traditional methods, you can reach a new target market that is unaffected by the emotions that come with a traditional retail buyer and is interested in your house in its current state. Businesses like CashBuyersNY are willing to make a cash offer as soon as they see a property and are interested in buying houses in any condition. Imagine being able to call in the morning and receive an offer for your house in the late afternoon. Why would you put off selling your house for months if you have this choice?
Those who are considering selling their house should keep in mind that the conventional approach of working with a real estate agent might not always be the most effective solution. You may be better served in the long run if you skip hiring a real estate agent and instead pursue the non-traditional path of selling your home to a real estate investor. This recommendation is dependent on the circumstances you are in and the speed at which you wish to relocate.