Lucky you, Mr. or Ms. Homeowner! Did you know you actually have options when it comes to the best way to sell a home?
While listing with an agent is still the de facto default for most people, it may pay to explore other options to sell your home to get what you need from selling it.
Before you put up that ‘For Sale’ sign in the front yard, it’s important to do a serious assessment of your selling goals. Having a clear picture of what you want and need out of selling will help you decide the best way to sell your home.
Assessing your selling goals
Congratulations on successfully completing the first step toward a home sale: you’ve actually made the decision to sell your house! Now let’s talk about your goals.
Before deciding on how to sell, think about why you’re selling. Maybe some of these apply:
- You need to sell your current home to buy a new one.
- You need a larger home to accommodate a growing or multi-generational family.
- You need to move or relocate to another city or state for a job or personal reasons.
- You want to downsize.
- You’re retiring and hitting the road in a new mobile home (some pretty sweet RVs out there 😉).
- You’ve inherited another home you just don’t need or want.
- You’re facing some financial difficulties and need to get out from under your mortgage.
Now, with your ‘why’ in mind, ask yourself a few more questions to help narrow down how to sell:
- How much equity do I have in my home?
- How much do I want or need to make selling my home?
- What are my plans for using any proceeds from the sale of my home?
- Do I have a limited timeline to sell?
- Have you sold a home before?
Take a look at your finances
Hand-in-hand with assessing your home selling goals is taking a hard, realistic look at your current financial situation. Figure out what your bottom line is. Will you have enough proceeds to do what you need to do after selling your home?
Be sure to factor in the fact that whichever way you choose to sell your home will involve some costs. For instance, if you decide to list your home, you may need to make some repairs or updates before putting it on the market. You’ll also have to pay a commission to a listing agent. Then there are always some closing costs you, as a seller, are required to pay (regardless of anyone who says they’ll pay them for you).
What’s the best way to sell your home?
Now that you’ve set some clear goals, match how they align with these three popular selling options to decide which one works best for you.
Listing with a real estate agent or REALTOR®
If your goal is to get the highest possible price for your home, selling the traditional way of listing with a real estate agent may help you achieve it.
Pros
- Expertise and guidance: A real estate agent brings experience, market knowledge and negotiation skills to help you navigate the selling process.
- Wider exposure: Listing your home on the Multiple Listing Service (MLS) and other platforms increases its visibility to potential buyers.
- Pricing accuracy: Agents can provide a comparative market analysis (CMA) to help you determine an appropriate listing price.
Cons
- An agent’s commission (currently 5-6% of the final sale price of your home) and fees are deducted from the proceeds of your sale.
- Costs and time to prep house for sale (needed repairs, updates, etc.)
- Inconvenience of appointments for home showings and open houses that can interfere with your schedule and lifestyle.
- Lengthy time commitment to sell (average time on MLS in today’s market is 34 days).
- Risk of sale falling through due to buyer contingencies or other factors.
For Sale By Owner (FSBO)
If your goal is to save some money and avoid paying an agent’s sales commission, consider selling your home yourself.
Pros
- You’re in control of the entire sale.
- No agents to deal with or commissions to pay.
- Allows you to personally interact with potential buyers and showcase your home’s unique features.
- “Fiz-bo” is fun to say!
Cons
- You have to do everything – prep home for sale, set list price, list on MLS (which only a licensed agent can do, so you will need to pay a flat fee for this step), schedule showings/open houses, negotiate with buyers, work with title company, etc.
- Lack of real estate experience, market knowledge.
- Legal complexities and paperwork.
- HUGE time commitment.
- Still need to pay buyer’s agent commission (~3%).
iBuyer or cash home buying company
Need to sell your home fast? Don’t want to deal with the hassle and expense of listing it? Looking for peace of mind from a more certain cash sale? Selling to Offerpad or a local cash home buying company may be the best way to sell your home.
Pros
- Speed & convenience: These buyers provide fast offers – often within 24 hours – and a streamlined selling process, allowing you to sell your home quickly.
- Minimal repairs: Cash home buyers typically purchase homes in as-is condition, saving you time and money.
- More certainty of closing: Selling to an iBuyer or cash buyer eliminates the risk of a sale falling through due to financing issues.
- Avoid hassles of listing your home (no showings!) and working with agents.
Cons
- Offers may be less than what you may get on the open market.
- iBuyers may not be available in your market.
- Some cash buyers may charge a service fee.
We’ve got you covered!
Whatever your home selling goals, you’re in luck with Offerpad! We give you options to choose your best way to sell your home:
- Want a fast cash offer to sell without listing? We’ll send you one in 24 hours.
- Decided to test the waters on the open market? We can list your home and help you get it ready to sell with some pre-sale perks like cleaning services and home improvement advances.
- Need to sell your home and buy a new one? You can bundle our buying, selling and mortgage services and save thousands! Literally.
Just click here to get started: