The way you sell your home has a huge impact on the outcome you get. Traditionally, there have been two primary ways to sell a house: using a realtor or a property investor. But sellers today have a broader range of options available to them, offering a few different routes to consider based on their specific needs.
1. Selling with a real estate agent
If your house is in market-ready condition, selling with an agent can make a lot of sense. However, if your house does not have a modern up-to-date feel or if it needs repairs, this can be a long path as these homes can take a long time to sell. Houses that sit on the market for a long time are typically sold at a steep discount.
Also, be careful with choosing a real estate agent. The majority of them have very little actual experience (tip: ask how many homes they have sold personally in the last year, not their company), but all charge high fees, typically 6%.
Read more: What to Know Before Signing With a Real Estate Agent
2. Selling to a property investor
For homes that are not market-ready, an option is to sell to a property developer or what is known as a “cash buyer.” There are many, and you may have received their postcards in the mail. The first instinct is to be wary of these companies, and for good reason. They make a living by negotiating deep discounts on homes. Your discount is their profit margin.
Further reading: What Does It Mean to Sell Your House Off Market?
3. Selling to an iBuyer
In case you haven’t heard about the trend, a relatively new breed of homebuyer called an iBuyer has become more common over the past five or six years. An iBuyer is a real estate company that relies on data and digital technology to estimate your property value and make an offer to buy it from you directly.
In theory, iBuyers provide a more efficient path for home sellers than the traditional real estate listing process. However, it’s important to understand the potential risks and pitfalls of using an iBuyer, including the potential for their offer price to change from the initial estimate.
Read more: Watch Out for This Tactic Used by Predatory Home Buyers
4. For sale by owner
Technically, a for sale by owner (sometimes called FSBO) transaction is the same as number one above, except without the services of a real estate agent. For sale by owner transactions can be much cheaper than the traditional sales process because they save the seller from having to pay seller’s agent commissions. However, an FSBO sale still carries the risks and time-consuming requirements of listing a house on the market.
This option will certainly cost a seller less, but beware, a for sale by owner house means having to accurately price the house, market the property, show it to buyers, and handle all the legal and transaction paperwork on your own.
5. Selling to a marketplace for non-market-ready houses
A new option, Sundae, is a marketplace for homes that are not market-ready. Sundae exists to help off-market sellers maximize the value they get from their home when they sell. We are committed to getting you the highest price possible. We can do this because we don’t charge fees, and we have a large network of vetted investors who compete to buy your property. We also offer assistance, like providing a $10,000 cash advance to help with moving costs.
Sundae’s goal is to help you get the best outcome when you’re selling a house that needs some love. This means we are happy to provide advice to people trying to think through their options. If you get an offer, the investors in our marketplace can almost certainly beat it, and we’ll be transparent with you about whether or not it’s a good offer. Don’t hesitate to call us and ask.
Tips for any approach to selling
Regardless of which way is best for your needs, here are a few final things to remember when selling your house:
- Whatever situation you are facing, focus only on what you can control
- Get the most money possible by seeking the best available offer
- Do your homework and calculate net proceeds from each potential selling approach
- Look for transaction partners who are open and honest, and are not just good at selling you on their offer
Further reading: How to Sell a House That Needs Work
Sundae’s co-founder and CEO, Josh has a history leading companies that operate at the intersection of real estate and technology. Prior to Sundae, Josh was Founding Partner and SVP of Sales at LendingHome, and before that, he was Co-Founder and CFO of Purpose Built Investments. Josh graduated with honors from Stanford with a BA in Economics, BA in Spanish, and an MA in Latin American Studies with a focus in Economic Policy.