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Selling Your Home: Pros and Cons of Using a Real Estate Agent vs. Selling to an Investor

If you're considering selling your home, you may be wondering whether it's better to use a real estate agent or sell to an investor. Both options have their advantages and disadvantages, so it's important to understand the differences between the two approaches before making a decision.

Pros of Selling with a Real Estate Agent

  • Access to the Multiple Listing Service (MLS): Real estate agents can list your home on the MLS, which is a database of properties for sale that is used by other agents and potential buyers.

  • Expertise in pricing and marketing: Real estate agents have experience in pricing homes accurately and marketing them effectively to attract potential buyers.

  • Negotiation skills: Real estate agents can help you negotiate with buyers to get the best price for your home.

Cons of Selling with a Real Estate Agent

  • Commission fees: Real estate agents typically charge a commission fee of 5-6% of the sale price, which can add up to thousands or even tens of thousands of dollars.

  • Longer time to sell: Selling a home through a real estate agent can take several months, depending on market conditions and the condition of your home.

  • Home repairs: Real estate agents may require you to make repairs or updates to your home before listing it, which can be costly and time-consuming.

  • Showings/stagings: The real estate agent may require you to "stage" your home (decorate and furnish it in a way that they perceive will increase interest), and show it multiple times on their schedule, which can be inconvenient.

  • Limited buyer pool: When selling your home on the MLS, you are often targeting a very specific buyer pool called homesteaders. These are people who wish to live in your home as their primary residence. This can limit your buyer pool to a select few individuals who are actively looking in your neighborhood.

  • Financing contingencies: Most homestead buyers are purchasing homes with bank financing, which can bring into play financing contingencies. This means that although they have made an offer and you have accepted it, there is a chance they will not be able to close because the bank denies their mortgage application. With bank financing, you are also required to have a appraiser come and evaluate the property, which can drive down your asking price or drive up the repair costs. In some cases, an appraisal may not pass inspection until certain repairs are made, making it virtually impossible for someone to get funded to buy the home.

Pros of Selling to an Investor

  • Fast sale: Investors can often buy your home in a matter of days or weeks, which can be especially beneficial if you need to sell quickly.

  • No commission fees: Investors typically don't charge commission fees, which can save you thousands of dollars. At Apollo Homes, we also cover all closing costs for our sellers as well, putting even more money directly into your pocket!

  • No repairs necessary: Investors will buy your home as-is, which means you don't need to make any repairs or updates before selling. We also do not require an appraisal to be done.

  • No financing contingencies: Because we are paying cash for your home, there is no bank to tell us "no"! This means that we will not back out of the deal because of issues getting funded to purchase it, which brings you more security and peace of mind in the transaction.

  • Sell with tenants in place: Many investors will also consider buying properties with tenants in place - and honoring any active lease - meaning you don't necessarily have to ask your renters to leave in order to sell!

  • Creative financing: In addition to an all-cash offer, many investors also buy properties on creative financing terms, which can allow you to take advantage of all of the benefits of selling to an investor while also selling for top-dollar by accepting the payments in monthly increments. Learn more about creative financing here.

Cons of Selling to an Investor

  • Lower sale price: Investors typically buy homes at a lower price than market value, since they need to make a profit on the sale.

  • Scams: Some investors may try to scam homeowners, so it's important to do your research and work with a reputable investor.

Ultimately, the decision to sell your home with a real estate agent or to an investor depends on your individual needs and circumstances. If you have time to spare and want to get the best possible price for your home, selling with a real estate agent may be the way to go. If you need to sell quickly and don't want to deal with repairs or commission fees, selling to an investor may be a better option.

In either case, it's important to do your research and work with a trusted professional who can guide you through the process and help you make the best decision for your situation. If you'd like to see what we could offer for your property AS-IS, get a free cash offer here, or talk to one of our real estate professionals!



If you have a home that you're looking to sell quickly, effortlessly, and for cash, please submit the property details here and one of our associates will reach out to you with an offer!


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