The Pros and Cons of Selling Your Home with an Agent When Buying With Cash
Selling your home with an agent
There are many benefits of selling your home for cash over the course of a traditional real estate transaction. While selling for cash can be quicker and less stressful than listing your home with an agent, it also comes with some risks. While selling for cash may be faster, you might end up losing out on extra money. Here are three things you should keep in mind. While selling for cash will cost you a little less than listing it with an agent, it may not be the best choice for your needs.
Saving thousands of dollars in closing costs
In an increasingly hot real estate market, sellers have a lot of negotiating power when it comes to closing costs. Many costs are negotiable, including commission rates, attorney fees, and recording and messenger fees. When comparing lenders, you should ask for good-faith estimates of closing costs. Some banks offer free or reduced origination fees for their “Preferred Rewards” members, and they can even negotiate closing costs on your behalf.
Avoiding scams
When selling your home for cash with an agent, you should be on the lookout for common scams. These include unsolicited communications and outright all-cash offers. Keep in mind that a typical contract-to-closing time can be four to six weeks, and a buyer who wants to close immediately is likely a scammer. A cash home buyer should never ask you to pay any fees or commissions before the sale.
Time commitment
One advantage of using an agent to sell your home is that you can set the timeframe of the sale. For example, if you list your home for a month with an agent, the agent may put their full efforts into selling the other listings. This can delay the sale, but this can also help it sell faster. Nonetheless, you should note that a listing agreement should only last for three months. If it does not sell within this time, you can either renew the agreement or hire a new agent.
Cost
There are many costs associated with listing your home with an agent. First, you have to pay for your property taxes, which should be prorated and passed on to the buyer. Another expense is a home warranty for the buyer, which covers repairs in the first year of ownership. These costs can total up to $500. Depending on the circumstances, you can keep the cost under $1,000. Additionally, you may be asked to provide the buyer with a warranty or concessions on the selling price.
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