Choosing Between Listing and Selling Directly to a Real Estate Investor in Sacramento

If you’re looking to sell your house, you’re faced with a choice: should you list it with a real estate agent, or go for a direct sale to a real estate investor? Well, the answer isn’t one-size-fits-all; it all depends on your unique circumstances. So, let’s dive into the pros and cons of these two options and help you make an informed decision.

Listing with an Agent

The traditional route of selling a house involves teaming up with a real estate agent. These professionals are well-versed in the process, have a deep understanding of the market, and access to the Multiple Listing Service (MLS). They can tap into a broad pool of potential buyers, manage the marketing strategy, and work towards securing the best possible price for your property.

However, there are some drawbacks to consider when using an agent. First, you’ll have to part with a portion of your sale proceeds to cover the agent’s commission. Moreover, the process can be time-consuming, with the sale taking anywhere from six months to a year. Multiple showings and the risk of a sale falling through due to buyer financing issues can be stressful.

On top of the agent’s commission, sellers may also be responsible for covering part or all of the closing costs, further diminishing the actual amount you’ll receive from the sale.

A Direct Sale to a Real Estate Investor

For many homeowners contemplating between listing their property and selling directly to a real estate investor in Sacramento, the latter often proves to be the better choice. The advantages of a direct sale include a speedy closing, typically within just one week, and an all-cash payment. Most investors also cover 100% of the closing costs, and you won’t need to pay any agent commissions.

However, it’s important to bear in mind that investors are in the business of making a profit, typically through property flipping or renovation and rental income. This means they aim to purchase houses at a discount to ensure a return on their investment. As a result, the sale price when dealing with an investor is likely to be lower than what you might get through a traditional agent.

Carrying Costs

When weighing the options of listing versus a direct sale to a real estate investor in Sacramento, it’s crucial to factor in carrying costs when working with an agent. These expenses encompass everything related to owning and maintaining the property while it’s on the market, such as HOA dues, mortgage payments, property taxes, utilities, and insurance.

Although listing with an agent might yield a higher sale price, the extended timeline, which can take up to a year in some cases, can eat into your profits due to these carrying costs. On the other hand, selling to an investor may result in a lower sale price, but the faster transaction could leave more money in your pocket in the end.

In the end, there are pros and cons to both listing with an agent and opting for a direct sale to a real estate investor in Sacramento. The best choice depends on your individual situation and requirements.

If you’re new to the real estate selling game and need guidance, don’t hesitate to reach out to Laurel Buys Houses at (916) 476-2381 or by filling out our contact form.

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