Disclaimer: This article is meant for general informational purposes only and should not be considered professional or legal advice. If seeking legal or professional advice please seek a qualified legal professional.

Should I List My House With An Agent or Sell To A Cash Buyer?

That is a terrific question! If you are selling your house and stuck deciding whether you should hire a realtor or sell your house fast to a cash buyer, you are not alone. This article is a straight forward evaluation of this very important question.

The first question you are probably asking yourself is “why would I want to sell my house to some random person and not just go the traditional route of listing my home with a realtor?”. It is a valid question, but there a lots of legitimate home buyers out there. There are other ways to sell your house and they just might be the better option for you.

When You Should Sell Your House With an Agent

– You are in no hurry to sell your home.

– Your home needs minimal repairs or updates, if any.

– You are able and willing to spend time and money on exterior appeal.

– You do not mind 2-4 months of holding costs such as taxes, mortgage, utilites, insurance, etc.

– You do not mind multiple showings and strangers walking through your home on many occasions.

If you check these boxes, selling your house with a realtor is likely the best option for you. If you do not check all these boxes and are curious as to how to sell your house without an agent, you’re in luck…..

Options For Selling a House That Needs Repairs

Deciding when it is right to list your house with an agent is the easy part. Many people struggle with knowing when it makes more sense to sell their house without a realtor. It is important to consider that selling with an agent makes sense if the additional profit of the sale is greater than both the expense and hassle of selling your house on the market.

Lets say that your house does in fact need some repairs and updates. Just because your home needs some work does not necessarily mean you should not sell your house on the market, with an agent. There are, however, some very important things to understand and consider.

Selling Your House That Needs Repairs with an Agent

The common thought in this situation is “well I can just sell my house at a little discount to account for the repairs needed”. Unfortunately for you, this is not necessarily how it works. Let’s say a car is worth $20,000 but has a non working engine in it that will cost $5,000 to replace. Would you buy that car for $15,000? Not a chance. It works the same way with houses. If the buyer is expected to complete work on the house, that in itself will often result in a monetary penalty in addition to the cost of work to be done.

Other factors to consider that often times result in a monetary penalty are: stress, hassle, holding time and costs, repair costs, uncertainty, and risk.

More than likely you will have a harder time finding someone to buy a house $10,000 off the retail price if they know that $10,000 of repairs need done. What happens if you encounter additional issues when making those repairs? Or what happens if cost of materials or labor increases during the rehab. And what if it takes you an additional 2 months to complete the repairs, giving you an additional 2 months of mortgage payments, taxes, utilities, and insurance? All of these are scenarios that home buyers should consider and can often times result in monetary penalties at the expense of the seller.

After all, if you were the buyer and you were given the option between a house that needs zero work and is valued at and costs $150,000 or a house that costs $120,000 and needs $30,000 in repairs to make it worth $150,000, which one do you choose?

The house that needs zero work and costs $150,000 all day long.

When listing a house (that needs repairs) with an agent you will likely need to provide a larger discount than simply reducing the amount of repairs and updates needed. Homeowners often struggle to understand this and for that reason can be one of the biggest reason why homes sit on the market for months at a time, costing the owner holding costs and frustrations along the way.

Costs to consider while your home sits on the market…

Holding costs are the responsibility of the home owner all the way up until they sell their property. These include taxes, mortgage payments, insurance, lawn and snow removal, and utilities such as heating, cooling, and power. Every day that your house sits on the market without selling, these expenses continue to grow.

When your home sells you will then likely have to pay closing costs and realtor fees and commissions on top of your holding costs!

This is why it may be best to use an agent if you are confident that your home can sell quickly and you have enough value or equity in your home to make up for the additional expenses and hassles of selling your house with a realtor on the market.

A home that needs no repairs and can fetch top dollar may be a great candidate for selling with an agent while a home that will take longer to sell due to a list of repairs and updates may be better sold a less traditional way. Which brings me to another great option…..

Selling Your House to a Cash Home Buyer

I’ll say it again…. if your home is new or newer and needs minimal to no repairs, your best option may indeed be to sell on the market with an agent or realtor. If the home is likely to sell fast and capture full retail value, this may indeed be your best option.

However, not many people are selling new houses that need little to no work….at least not in Omaha where there are neighborhoods full of older homes.

In conclusion, when deciding whether or not you should sell to a cash home buyer or list your house with an agent consider this:

– A house needing repairs will likely require a price reduction.

– A house requiring the buyer to complete updates or repairs will likely require a price reduction.

– A home that does not sell fast on the market will likely result in additional holding costs.

– A home that needs lots of repairs or updates will likely have a smaller number of interested buyers.

– Listing your house for sale with an agent or realtor will likely results in additional fees and commissions.

– If selling a house on the market that needs repairs, the buyer could require you to make those repairs before closing on the house.

Selling to a cash buyer is a very realistic option for most homeowners. Being the “less traditional” way of selling your house, there are understandably many questions and concerns about doing business with a complete stranger without an agent representing you. However, as we have seen here, there are many scenarios where it may make the most sense both financially and mentally.

You are encourage to do your research before doing business with anyone, both cash home buyers and real estate agents alike.

Keep in mind, cash buyers are not agents and usually there are no closing costs or realtor fees for you to pay. Most cash home buyers purchase properties in as-is condition, meaning no repairs will be required of you.

If you want to find out how much a cash home buyer, like us, would offer you for your house in Omaha, please give us a call at (402) 226-8963 or fill in the form below. You have nothing to lose by getting a cash offer on your home in Omaha or surrounding areas before signing a contract with a real estate agent!