When people think of putting their home up for sale, two options usually come to mind: hiring a real estate agent to list the property or selling for sale by the owner and saving on commission fees. However, there’s another option that is growing in popularity. You can discreetly sell your home off-market to a professional cash home-buying company, such as ourselves.
Both on-market sales and off-market real estate sales have their advantages. We’ll explain the two types of sales and the key advantages of both to provide you with the knowledge needed to make an informed decision.
Selling On-Market
An on-market listing is basically a standard approach to selling. The listing agent conducts market analysis to set an asking price. Recent sales of similar homes as well as the unique features and attributes of the home, are factors in setting the price. The property owner and the real estate agent will sign a formal listing agreement (more precisely, the agent’s broker).
If there are obvious repairs, the agent may recommend you make them before actively listing the property. You’ll need to disclose any known issues with the home. You can decline to make repairs and list the home as-is. This means the buyer is responsible for making any repairs needed to get financing on the home or will opt to buy the home in cash. Because lenders require inspections before writing a mortgage loan, they’ll want to ensure the home is a good investment. When there’s a mortgage, the home is the collateral used to secure the loan. They won’t approve the loan if the home can’t pass an inspection. FHA and VA loans have very strict and specific guidelines for homes.
A “for sale” sign from the brokerage is displayed on the property in the most visible location for prospective buyers who may pass by the home. The property is listed on the Multi-Listing Service (MLS) site and the broker’s website. The agent will market and network with other agents who may have a buyer interested in your home.
The agent will handle all viewing and answer all questions about the home. They’ll typically put a lockbox on your door so agents can enter the home as needed to show the property to clients. The seller agent will negotiate all offers to get a fair price.
Although a real estate agent handles the majority of the work, this comes at a price. The commission fees are usually 6-7 percent of the sale price. Sellers who don’t mind doing the work will usually opt to cut out the agent and sell “for-sale-by-owner.” Although this method may save sellers money, it does have major drawbacks. You won’t have access to as many qualified buyers if you’re choosing to market the home yourself.
There are services that will place your home in the MLS for a fee, but this fee is sometimes hundreds to thousands of dollars. You’ll also still encounter the same issues if the home needs repairs – except you won’t have the help of an agent to approach an as-is sale. You would need to price the home taking into consideration the cost of repairs and renovations necessary, but avoid pricing it so high that it sits for months or so low that you lose out on money.
The Benefits of Selling On-Market
The main benefit of an on-market sale is that you may get more money for your home if no major repairs are needed. If the home has recently been remodeled or renovated and you think buyers won’t have any issues obtaining financing, a traditional sale may be the best route. Since a closing can take months, be sure to deduct about 3 months of mortgage payments plus real estate commission fees from your profit. An issue with the buyer’s financing could result in a longer than anticipated closing or the deal falling apart entirely. If that happens – the agent will have to put your home back on the market. You’ll have to wait for
a new buyer to negotiate a deal, which may not even be as good as the initial deal. Then, you’ll wait another 3 months for that closing to occur.
Selling Off-Market
An off-market listing means your home isn’t shared with the public. There are opportunities with some companies to list your home on a network only viewable to real estate professionals and investors. You may sell through word of mouth or, more commonly, contact a professional home buying company to make a cash offer on your home. Typically, you’ll contact an off-market professional company to start the process. You’ll need to provide details about the home to get your customized offer. Once the company checks out the home, they’ll make an offer and schedule a closing. The process is far less complex than an on-market listing and sale.
There are many reasons selling off-market over listing publicly in preferred. Off-market sales are discreet. They’re an ideal way for struggling homeowners to avoid foreclosure without having to disclose to the public that they can’t pay their mortgage. Not everyone wants to air the details of their finances with the public. Homeowners can use the cash to pay off the mortgage loan and stop foreclosure before it becomes a public record. Another scenario is a divorcing couple that wants to avoid questions and assumptions. Selling the home privately allows them to upload it fast without a “for sale” sign in the front yard. Whatever the reason for selling, off-market sales are private, discreet, and simple.
Benefits of Selling Off-Market
Off-market sales are fast. The closings occur in days or weeks instead of an on-market transaction that takes months. Buyers who need money right away often find selling their home off-market is the way to get the necessary funds promptly. There are countless scenarios in which a seller needs money in a hurry. They are struggling to keep up with the mortgage payments needed to pay off the loan to keep their head above water. Or they found their dream home and need the down payment money fast. Regardless of the circumstances or the specifics, off-market sales are significantly faster alternatives to conventional on-market sales.
Since off-market sales are paid in cash, sellers won’t have to stress the buyer’s financing falling through at the last minute. Skymount has purchased over 100 properties in Northeast Ohio and knows the process in and out. With a cash transaction, it’s smooth sailing. At the closing, paperwork is signed and keys are exchanged for cash.
When homes are sold off-market, you eliminate the need to make repairs and renovations. The market is competitive. You’ll need your house in the best condition to get top-dollar. In many cases, repairs have to be made just to get the home to pass an inspection. Things you may not visually see, such as pipes or plumbing, are necessary repairs that won’t actually add to the value of your home. In an off-market sale, your home is bought as-is.
No agents are involved in an off-market sale. Agents can help effectively sell the home on the market, but there’s no need for one in an off-market sale. You’ll save thousands in commission fees by cutting out the agent. When an agent lists your home, they’re not just marketing it, but other agents are viewing it as well. You can expect many strangers in and out of your home. Off-market sales mean there are no showings or open houses. No staging or even clean-up is required.
Off-market sales are fair, easy, convenient, and fast. They’re stress-free alternatives to selling. When you contact us at SYHF, we’ll get some preliminary information and then the details about your home. We will ask about major issues with the home and if any renovations have been made recently. Our property specialist will contact you to schedule a time to view the home at your convenience. We’ll look at it and then make you honest cash over. If it all sounds good to you, we can schedule the closing to occur in a matter of days or weeks.
Considerations When Selling Your House
Generally speaking, selling off-market sales is a much faster way of selling your home, but you could potentially get less for the property. If you calculate the time, effort, repairs, risk, etc., that goes into the home, you may find the reduced sale proceeds are well-worth it. Valuing time and effort is tough, which makes it a personal matter of opinion.
Skymount Buys Houses is a local, trusted Ohio-based company. We aren’t just an acquisition company, we’re your neighbors. While we love buying homes and providing homeowners with an alternative to conventional market sales, we know it’s not for everyone. Check out our reviews and see what others are saying about their off-market experience. Contact us today so we can discuss your unique situation to see if an off-market sale is the right choice for you.
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