If you decide to sell your house by yourself, there are a few ways to go about it. One way is to sell on-market, in what is called a for-sale-by-owner (FSBO) listing. The other ways are to sell directly to an investor or an iBuyer.
FSBO
Listing on-market (on the MLS) without an agent means that you will be responsible for all aspects of the sale process, including:
- Setting the price: determining the current market value of your house using online resources and comparable sales in the area.
- Marketing: creating a listing on an online platform like Zillow or Redfin, as well as advertising in local publications and on social media.
- Showing the house: scheduling and conducting showings for prospective buyers.
- Negotiating with buyers: negotiating terms like price, closing date, and contingencies.
- Handling paperwork: completing and submitting all necessary paperwork, including the purchase and sale agreement and closing documents.
Selling your house on your own can be a time-consuming and challenging process, but it can also save you money on commissions. If you decide to go this route, it’s important to be prepared and to educate yourself on the local real estate market and the legal aspects of a real estate sale.
Investor or iBuyer
An investor is a person or company that buys properties to hold them as rental properties, or to renovate and flip them for a profit. If you decide to sell your house to an investor, you will get lower than a full retail price. This is because they will be the ones making repairs and renovations to prepare the house for rental or sale. The benefit, then, is that you don’t have to worry about those things! And, you save money by not paying an agent commission. An investor may be able to offer conveniences like a fast closing with an all-cash offer.
An iBuyer is a company that uses technology to make quick cash offers. They will also offer lower prices, but are very convenient. While an investor may be able to get creative in their offer (for example by paying you interest, or taking over your loan), an iBuyer will usually stick to a rigid process.
To sell your house to an investor or an iBuyer, you will need to:
- Research potential buyers: look for reputable investors or iBuyers in your area.
- Negotiate terms: reach out to them to negotiate price and other terms. An iBuyer may only be able to negotiate price, while an investor can negotiate many things (for example, how much interest you get paid). Both may want to come and see your house, but it will not need to be “made ready.”
- Sign a purchase and sale agreement: sign a legally binding document specifying the price and all terms.
- Close on the transaction: work with the buyer and a title company or attorney to complete all of the paperwork.
If you are looking to get the highest possible price, it will come from making your house nice and then selling it on-market. If you are unable to do repairs and renovations, or if you really need certain conveniences like cash and a fast sale, investors and iBuyers may be your best option.
Whichever way you decide to go, feel free to contact us to see if we can help you with any questions you may have!