Listing vs. a Direct Sale to a Real Estate Investor in San Jose

Listing vs. a Direct Sale to a Real Estate Investor in San JoseIf you want to sell your house, should you list it with an agent, or should you sell directly to a real estate investor? The best answer is . . . it depends. Everyone’s situation is unique, and that’s what determines the best option. So let’s look at some of the pros and cons of listing vs. a direct sale to a real estate investor in San Jose.

Listing vs. a Direct Sale to a Real Estate Investor in San Jose

Listing With an Agent

The most popular way to sell a house is through the traditional route that involves working with a real estate agent. Agents are educated in the process, know the market, and have access to the MLS. They can target a huge market of potential buyers, will handle the marketing, 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 and that the process can take a long time. Because most agents confine their marketing efforts to traditional marketing, selling your house could take anywhere from six months to a year. You will also have to endure multiple showings, and there’s always the chance that a sale will fall through because a buyer can’t get financing.

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. The upshot 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 San Jose, the latter is often the better option. The chief benefits of selling directly to a real estate investor are the usual cash payment and the quick closing, often as little as just one week. Also, most investors will pay 100% of closing costs, and you won’t have to pay any commissions to agents.

In deciding between listing vs. direct sale to a real estate investor in San Jose, keep in mind that investors are buying houses in order to make a profit, either by flipping or renovating and renting. And this means that their goal is to buy discounted houses in order to realize an 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 San Jose 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, the whole process can take so long (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.

There are both pros and cons concerning listing vs. direct sale to a real estate investor in San Jose, 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 (408) 715-2853 or fill out the form.

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