3 MAIN OPTIONS FOR SELLING YOUR HOUSE

THIS OPTION WORKS BEST WHEN:

- Home owner is not in a hurry to sell or vacate the house by a certain date

- Home owner can fund required repairs, liens, any mortgage payments in arrears and required closing costs 

- Home owner has experience in valuing a home, showing it, leading negotiations, writing contracts and getting it to the closing table (a realtor can/will also typically assist in this process for a nominal fee).  

- If there is discomfort with any of the above, this may not be the option for you.

PROS:

- Highest potential return for the home owner, with low to no realtor fees

- You control the process, schedule the showings and market the house

CONS:

- You do all the work and incur all the risk, from determining the home's market value, all showings, negotiations, paperwork and getting the deal to the closing table (unless you involve a realtor). 

- In general, it takes longer to sell a home by owner, so if time is critical, this may not be the best route.

- Many deals can contain contingencies that can fall through at the last minute, further prolonging the sale of the home.

THIS OPTION WORKS BEST WHEN:

- Home owner is not in a hurry to sell and has the time to wait for a buyer that will pay near or at full market value.

- Home owner has room in the transaction to pay realtor fees (usually upwards of 4%-6%) on top of any required repairs, closing costs, etc.

PROS:

- Realtors are licensed professionals that know the market well, often have extensive networks and access to the MLS for greater exposure.

- Realtors will take care of all marketing, showings, and putting together the closing documents, to avoid any legal risks.

CONS:

- Since realtors are focused on selling the house at the highest value (their commission is based upon this value), this can prolong the sale of the house.

- As with for sale by owner, these deals can contain contingencies that can fall through last minute and the process starts over again.

THIS OPTION WORKS BEST WHEN:

- Time is critical and the home needs to be sold quickly, with little hassle or risk the deal with fall through.  Closing can happen in as little as 7 days.

- Home owner does not have the funds to cover required repairs, liens or past due mortgage payments required to sell the house.

- Home owner owes more than the market value of their house (no equity exists)

- Home owner is facing pending foreclosure (can stop the foreclosure)

PROS:

- No fees nor commissions

- Many times the investor will pay all closing costs

- Closing always happens at a title company, so similar to working with an agent, this will eliminate potential legal risks associated with the sale 

- Any significant repairs, outstanding liens, past due mortgage payments, etc. can be calculated and resolved as part of the offer price.

- Can prevent foreclosure and the "atomic bomb" to a home owner's credit score, providing a fresh start.

CONS:

- Because the investor is taking on all the risk and higher costs in this transaction but still needs to make a profit, the home owner will likely be selling at a discounted price, in return for the speed, convenience and additional options that only a real estate investor is able to offer.