If you want to sell your house (or townhouse, condo, etc.), should you list it with an agent, or should you sell directly to a real estate investor? The best answer is . . . it depends on you and your situation. Everyone’s situation is unique, and that’s what determines the best option. So let’s analyze some of the pros and cons of listing your property with an agent vs. a direct sale to a real estate investor like Oahu Home Buyers.
Listing vs. a Direct Sale to a Real Estate Investor in Hawaii
Listing With an Agent
The most common and popular way to sell a house is through the traditional route that involves working with a local real estate agent. Agents are educated/trained in the process, should know the local market conditions, and have access to the MLS (multiple listing service). They can target a wide market of potential buyers, will handle the marketing of your property, and can help you get the best price.
The primary cons of using an agent are that you will lose money in paying the agent’s commission fees and that the process can often take a long time (depending on pricing and how well it’s marketed). Because most agents confine their marketing efforts to traditional marketing like blasting neighborhoods with postcards or flyers, selling your house could take anywhere from a few months to a year. You will also have to open up your home to multiple showings, and there’s always the chance that a sale will fall through because a buyer can’t get financing or just outright changes their mind, sending you back to the drawing board.
In addition to having to pay an agent’s commission out of the sale price, sellers often wind up having to pay part or all of the closing costs to close a deal including any repair credits. The takeaway is that the sale price isn’t really the amount of money you will ultimately receive.
A Direct Sale To A Real Estate Investor
For many people considering listing vs. direct sale to a real estate investor in Hawaii, the latter is often the better option. The chief benefits of selling directly to a real estate investor (like us) are the usual cash payment and the quick closing, maybe as quicky as one week. Also, most investors will pay 100% of closing costs, and you won’t have to pay any commissions to agents nor be burdened with repair credits.
In deciding between listing vs. direct sale to a real estate investor in Hawaii, keep in mind that investors are buying houses in order to make a profit, either by re-selling or renovating and renting. And this means that their goal is to buy discounted houses in order to earn a fair return on their investment (ROI). So your sale price when selling directly to an investor is likely to be lower than what you’d get when listing with an agent.
Carrying Costs
One thing to keep firmly in mind about listing vs. direct sale to a real estate investor in Hawaii is the carrying costs when listing with an agent. These are the costs associated with owning and maintaining a house while you’re trying to sell it – for example HOA dues, mortgage payments, property taxes, utilities, insurance, and so on.
So although you may get a higher sale price by going through an agent, if the process takes a while to close (up to a year in some cases) that your profit may be eaten up by these carrying costs. And although selling to an investor may mean a lower sale price, because it is much faster, you may ultimately walk away with more money in your pocket. Many factors obviously come into play in determining which side you would end up on.
There are both pros and cons concerning listing vs. direct sale to a real estate investor in Hawaii, and the best option depends on your unique situation and needs. If, however, you’re new to selling real estate, it may be difficult to make that determination.
That’s an area where the real estate investing professionals can provide some guidance. To discover more, give us a call at 808-333-3677 or fill out the form.