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Cash Home Buyer vs Real Estate Agent
In the previous blog post, we discussed several tips that will help a home owner sell their house quickly.
One tip was selling the property to a cash home buyer and the other was getting a real estate agent to list the home. Now, if you’re selling your home then what is the best option?
Let us explore the two options.
Getting Help From A Real Estate Agent
A real estate agent is an individual who holds a real estate license from their respective state. Holding this license means the individual possesses knowledge of laws and regulations pertaining to real estate transactions.
Aside from that knowledge, a real estate agent can provide great exposure to a house by listing it on the Multiple Listing Service (MLS). This means a home can be seen in places like Zillow, Trulia, or Realtor.com.
But all that knowledge and expertise comes at a price.
According to Zillow, an agent that lists a house typically charges a commission of 4 to 6 percent of the house’s purchase value . Depending on the homeowner’s goals, this might be a hefty price to pay; especially if the homeowner’s main goal is earning the most money from the sale.
Aside from the commission, a listed house can take months to sell. Now, there’s a variety of factors that influence the days a house spends on the market, but more than likely a listed house will take time to sell.
Here’s a data from El Paso’s housing market. If we take a look on the “median days on the market” graph, one can see the really high number of days it can take to sell a home.
Also, the high number of days it takes to sell a home is not exclusive to the El Paso area. Somewhat similar numbers can also be seen for major cities in Texas ( e.g. Dallas, San Antonio, and Houston)
But if a seller wants to hire a real estate agent, then he/she can start their research by understanding the roles that a real estate agent can play. In this article there’s a great explanation of what is a listing agent, a selling agent, or how a single agent can act as both.
To summarize, with a real estate agent the seller has to pay that agent a commission for the services they rendered and the property might take a long time to sell. But worry not, there is an alternative option.
This alternative option is a cash home buyer.
Selling Your House To A Cash Home Buyer
A cash home buyer (also referred to as a real estate investor) is a person or company that seeks to purchase properties directly from sellers. This individual or company has the cash ready to purchase the property without the need for a middle man.
This person or company seeks individuals that want/need to sell their home quickly and painlessly.
A cash home buyer does not list a property on the Multiple Listing Service; a cash home buyer simply pays the seller for their property. This makes the transaction quick, easy, and virtually hassle-free.
Who benefits from a transaction of this sort? Two kinds of people mainly. Typically individuals that don’t want to go through the hassle of listing with a real estate agent or those who are going through tough circumstances. Let’s look at some examples pertaining to the latter:
- Individuals facing foreclosure.
- A person who is going through divorce.
- Someone who is relocating.
- Or someone who’s house has simply become a nuisance.
Here at EP Real Solutions, we understand that situations like these are difficult enough to deal with on their own; can you now imagine having the additional pressure of having to sell your house? Forget that!
If you are going through tough times like the ones listed here or don’t want to deal with a real estate agent, then we can help. We buy houses here in the El Paso area and are more than glad to assist you.
Bottom Line
The route a seller wants to take when selling their home should ultimately be decided based on the reasons why they are selling their home.
If tough times are being experienced and/or a quick sell is wanted, then a cash home buyer is desired. The cash home buyer will purchase a home in cash and all the money will go to the seller.
With a real estate agent there’s the need to pay commission and potential months of waiting to finally sell; but of course, there’s the upside of having the house exposed to greater audiences and having the availability of the knowledge and expertise from the agent.