Selling a home is a significant undertaking, and choosing the right method can greatly impact your experience and outcomes.
In this blog post, we explore three popular ways to sell your home: On Market, For-Sale-By-Owner (FSBO), and Off-Market, each with its own set of pros and cons.
1. On Market: The Traditional Route
Pros:
Top Dollar: Listing your home on the market with a real estate agent often leads to getting the best possible sales price for your property.
Maximum Exposure: Through Multiple Listing Services (MLS) and various marketing channels, your property gains extensive visibility, attracting potential buyers.
Local Expert Opinion: Realtors bring local market expertise, helping you set a competitive and realistic price for your home.
Cons:
Repairs Needed: Buyers often expect homes to be in prime condition, which may necessitate repairs or upgrades before selling.
Longer Time to Closing: The average days on market across the U.S. is 83 days (nearly 3 months), and this does not include the time it takes to prepare your home to be listed.1
High Closing Costs: Closing costs are typically approximately 10% of the sales price, and include realtor fees, attorney fees, title insurance, and other costs which can add up to a significant amount.
2. FSBO: Taking Control of the Process
Pros:
Minimum Fees: You save on realtor fees, allowing you to retain a larger portion of the sale price. This will typically save ~6% of the sales price.
Direct Communication: You can negotiate directly with potential buyers, controlling the sales process yourself.
Cons:
Limited Exposure: Marketing your property can be challenging, as FSBO listings may not reach as broad an audience as those listed on the market.
Determine Value Yourself: Setting the right price without professional guidance can be tricky. Often minor changes in location, condition, or lot parameters can drastically affect the value of a house.
Handling Closing: Coordinating with attorneys and title companies to manage the closing process can be overwhelming.
3. Off-Market: Swift and Efficient
Pros:
Cash Deals: Transactions often involve cash buyers, streamlining the process.
Minimal Showings: Off-market sales typically involve fewer showings, reducing the inconvenience for sellers.
Sold As-Is: No need to invest in repairs; off-market buyers often purchase properties as-is.
Quick Closings: Properties can close in as little as 14 days, offering a speedy resolution.
Save Big on Closing Costs: Typically off-market buyers pay for the Seller’s closing costs and there are no realtor fees.
Cons:
May Not Get Top Dollar: Off-market sales might not fetch the highest market value in terms of sales price. This discrepancy in sales price though is often made up for by the savings on closing costs and realtor commissions, typically making off-market offers very competitive.
Buyers Find You: You rely on buyers actively seeking properties rather than your home being actively marketed.
No Seller Representation: Without an agent, you may need to manage the closing process yourself. But if you’re able to get connected with a professional investor/company, they will often manage the whole closing process for you.
In conclusion, the choice of how to sell your home depends on your priorities and circumstances. If top dollar is the goal and you're in no hurry to sell, on-market may be the route for you. For those seeking more control of the transaction, FSBO could be the answer. Meanwhile, off-market sales offer speed and convenience, making them ideal for certain situations, especially if your property requires some degree of repairs.
Off-market will almost always be the fastest and easiest way to sell your home, and typically is the best route for anyone looking to sell their house quickly or has a house in need of repairs.
Ultimately, understanding the nuances of each method will empower you to make an informed decision tailored to your needs.
For more information and guidance, feel free to reach out to Kubi Homes for help!
(910) 292 - 8429
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