When you are prepared to sell your property.

1

As a seller when you are prepared to sell your property you have a few choices:

1. Use a broker.

2. Sell to investors.

3.sell it yourself without a real estate broker or an investor.

Many sellers don’t like to employ a broker, a 6% commission seems like a lot of money especially in neighborhoods where home values are high, sellers seem to be reluctant to sell or list their property with a realtor not really knowing what added value a realtor adds to the transaction.

A real estate agent / a broker is a person or an entity that has a real estate business in the neighborhood, some are in business for many years and some just started business, but a broker starts his carrier like a real estate agent, he needs to attend real estate classes and work for a real estate broker for a year to gain some experience before he can apply to become a broker. All brokers must be licensed by the real estate commission in the state that they work in.

So real estate brokers have experience in selling properties, that’s what they do for living year around disregarding the weather, snow, rain, or heat. A broker promotes the property in the local multiple listing services aka MLS, internet, newspapers, flyers, Facebook, and other real estate websites. The broker also answers phone calls, set appointments, schedule viewing, help in negotiations between buyers and sellers, brokers have an office, they pay rent, electricity, a phone, car insurance, and other expenses.

An investor is a buyer and a seller as well, in many states he doesn’t need to be licensed, he mostly buys cash after deducting, construction cost, and other operating costs, an investor can close fast because he is buying cash and he is not applying for a mortgage.

If you are a seller selling also known as FSBO, your advantage is the 6% commission that you are saving while marketing your house, but you need to know your real estate market very well, invest time and energy by finding market value in your neighborhood, advertise, answer the phone, meet with clients, qualify buyers, and more. If you are working in an 8-5 job it is difficult to meet and qualify prospective clients after a long tedious day of work.

2

There are many types of investors in the market, cash buyers, flippers, wholesalers, rent with option to buy, investment companies, and more.

Cash buyers buy cash, these are real estate investors who wait for a good opportunity, the transaction is usually quick, the cash investor is mostly searching for clear title to check that the property is clear from any violation, mortgages, and any other lean.

The title search is done mostly by any seasoned real estate investor, buying without a title search is risky.

Disclosure: this blog, article is based on my experience working as a real estate agent, real estate broker, and real estate investor, it is not intended to give instructions, advice, or any other legal advice. I’m writing these blogs for personal development and these are stories that I personally experienced through my line of work. Please consult your lawyers, title company, or any other professional you may need if you are on your way to conduct business in real estate or otherwise.

Flippers are investors that either buy the house with the option to sell or leave a small deposit usually $1000.00 or less, once they have the contract secured they then contact other investors to buy the same property for a higher price.

Wholesalers are investors that search for properties, sign a contract, and then search for a buyer, in most cases, they have a list of other investors ready to buy the property. 

Wholesalers are usually not landlords and after the transaction is done they continue to search for properties to extend their inventory.

Rent with Option to buy investors are buyers that rent the property from a seller for a period of one or a few years with the option to buy the property by the end of the term, they then rent the property with an option to buy. A seller may agree to participate in this transaction if he is has a mortgage that is higher then the current value of the property, he may not want to lose money selling for less then he owes. The investor on the other hand is profiting  20-25% on the monthly rent and will profit again from a future hike in property value.

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Best,

Daniel

Disclosure: this blog, article is based on my experience working as a real estate agent, real estate broker, and real estate investor, it is not intended to give instructions, advice, or any other legal advice. I’m writing these blogs for personal development and these are stories that I personally experienced through my line of work. Please consult your lawyers, title company, or any other professional you may need if you are on your way to conduct business in real estate or otherwise.