Are you in a situation where you need to sell your property quickly because of a job relocation or transfer or have an “As-Is” property that needs to sell? A real estate investor can make the process of selling your property quick and simple. What is the difference between a real estate investor and a realtor and how does it work?
Real Estate Investors vs Real Estate Agents
As a Seller, you have many options when selling your property. You can list it on an MLS (multiple listing services) with a realtor, flat-fee listing with a broker, “For Sale By Owner” websites (Zillow, Trulia, Craig’s List, and For Sale By Owner), or sell it to a friend, family, or neighbor.
We Buy Houses for Cash – advertisements posted by many real estate investor companies. Their property buying process is simple, quick, cash offer accepts “As-Is” properties and no commission fee. Four ways to determine their legitimacy:
• Does the company have a valid website?
• Does the company have a physical location and telephone number?
• Verify if licensed with your local real estate commission? – In California
• Verify if accredited with BBB (Better Business Bureau)
Selling to a realtor gives your property more MLS visibility with a 6% commission fee. Realtors may get you more money for your property when sold, but that may take months and cannot give cash offer. However, if you have the time, your property is in excellent condition, paying the 6% commission fee to list on MLS can quickly sell your property.
How It Works
Investors are the buyers offering cash and the reason they can close the sale quickly. Their buying process is simple, quick, and takes three steps to complete:
Step 1 – Call for a free consultation
Step 2 – If you meet their criteria, submit your property information, schedule an appointment to review details
Step 3 – Choose a closing date, a no obligation written offer is given. If you accept it, then you can walk away with the cash in as little as a week.
Needing to sell your house fast does not mean undervaluing your property for a quick sale. The internet offers a plethora of resources at your fingertips to conduct your own research. Some basic criteria for your research:
• Current market
• The current state of your property
• ARV (after repaired value), amount determined by investors. See formula below:
MOA (maximum allowable offer) =(ARV*0.65) – Repair Costs
• Comparable properties in your neighborhood
Use MLS (multiple listing services) comps from realtors
As in any line of work, there are ethical and unethical people and practices, so do your due diligence when researching real estate investor companies. Weigh their offer and decide if it aligns with your calculations. Bottom line, if you have the time to sell your property and if it is in excellent condition, then go with a realtor. However, if your house needs repairs (minor or major) and must vacate immediately, then go with a real estate investor.