Comparing 4 Ways to Sell Your House

You may have a house that you want or need to sell and are considering your options for different ways to do it. Here are four ways to sell your house, condo, townhouse, or multi-unit building if you want to sell it “as is”.

1. For Sale by Owner
Want to do it yourself? You’ll skip commissions on the sale side (you still may pay a commission to the buyer’s broker). That’s a benefit for sure. If you have experience selling before and know how the process works, and how to price your house appropriately, you can try selling it on For Sale by Owner websites. It’ll be up to you to coordinate showings and deal with the issues that come your way through the process. The number one problem people report when trying to sell it “FSBO” is that it just doesn’t sell and it took a lot of effort for no result.

2. Use a Realtor
You’ll get the most exposure to showcase your listing and will have the professional help of someone that is dedicated to real estate (some Realtors are part-time). The expenses you’ll incur will be the highest going this route. You’ll usually pay commission for your broker and the buyer’s broker. Expenses to get the house ready for showings can be large and overwhelming. The seller is typically required to pay a large sum of the title charges and closing costs. Many buyers will require a loan and you’ll be at the mercy of that loan being approved so your deal can go through.

3. Use a Wholesaler
You may wonder what this is. Wholesalers are investors but don’t actually purchase the house. In some ways they are acting as a broker and are now required by the State of Illinois to have a real estate license. The plan is to agree on a price with you, as the seller, and then “sell” that contract to another buyer. The wholesaler then keeps the difference when the third party closes.

These deals are often messy and many sellers do not even know they are working with a wholesaler. Wholesalers often imply they are buying it and tell you they are bringing their contractors through during their inspection period. These “contractors” are actually other potential buyers. If the wholesaler can not find someone to buy the house for more than they agreed to pay, they then ask for a price reduction or back out entirely leaving you to start over. Direct Property Buyer has purchased many homes from sellers that had failed deals with a wholesaler.

4. Sell to an Investor
A direct homebuying company that actually purchases your home can be a great thing. Companies like Direct Property Buyer will buy the house, townhouse, condo, or multi-unit apartment building with typically just one visit. No inspections, no appraisals, no assigning the contract to someone else. They have real cash ready to go and will close quickly if that’s something you, as the seller want. Don’t be afraid to ask the buyer if they are using cash–many investors say they are using cash but are still getting a loan. Certainly don’t forget the most important question for someone you are considering using, “Are you actually going to close or assign this contract to someone else?”. That answer will separate a wholesaler from an investor that will buy your home.

Companies like this are in business for a reason and need to buy the property at a price they can somehow make a profit on it. Typically investors will buy, rehab, then sell OR buy, rehab, then rent it to a tenant.