Costs of Selling Your Phoenix House with an Agent vs. to an Investor
The decision to Sell Your Home is a Big One. Now that you’re ready to sell, you must consider the method you select to sell your home. While most homeowners’ first thought is to call a licensed real estate agent, why not consider the alternative of selling to a professional investor, like those at Oak Street Properties.
Real estate all comes down to the numbers, so it is helpful to understand the differences in the costs between selling your Phoenix house with an agent versus to an investor.
Agent
Marketing Expenses
Marketing expenses for selling your Phoenix house with an agent are part of the listing contract. They outline all of the steps that the agent will take towards selling the home, which can vary significantly by property.
Listing Costs
Listing costs will include anything you must do to prepare to sell your Phoenix house with an agent. These listing costs could consist of simple cleaning so that it is in ready condition for showings, to significant updates to the home’s interior, appliances, or more. Often, an agent will recommend sellers invest in renovations modernizing the features of a home to meet the demands of technology. Other amenities they may suggest including space for two home offices or even the addition of a study area for school-aged children.
Repairs
Repairs for any issues with the house will come out of pocket before closing. If the inspection revealed problems with your home that you were previously unaware of, you would also have to pay to complete these repairs. Otherwise, the lender will not approve the loan in many cases. Alternatively, you can expect the buyers to respond with their estimated costs for these repairs deducted from the offer. Avoiding this surprise can be achieved by hiring an inspector.
Staging Expenses
Staging expenses cover the cost to depersonalize the space, which enhances selling your Phoenix house with an agent. Buyers who tour the home can easily imagine themselves occupying a home free of personal items or showing a distinct personal taste in decor. You may also encounter storage costs to clear your home of excess belongings.
Advertising Expenses
Advertising expenses should be discussed and agreed to before signing the contract when selling your Phoenix house with an agent. These costs include professional photography for the high-quality images buyers have come to expect as they search listings online and professional drone pilots to provide 360-degree virtual tours.
Commissions
Commissions are paid for professional services provided, including marketing, paperwork, arranging for inspections, appraisals, and doing all of the footwork to bring a buyer to the door and finally the closing table when selling your Phoenix house with an agent. You can expect to pay a total of around 6 percent of the sales price in commission.
Holding Costs
Holding costs for the duration you have listed your Phoenix house with an agent can quickly add up, especially if you have had to relocate. Suppose your reasons for selling are financial. In that case, the longer that the listing lingers on the market, the more monthly payments for the mortgage, insurance, and taxes, and all of the utilities you will continue to carry. The strain of this situation can cause restless nights and extreme stress for your entire family.
Investor
An investor has none of these expenses! And because investors pay cash and buy your house as-is in most cases, you can close fast, sometimes in a matter of days!
Speed and Convenience
With little closing time to worry about, it is easy to see how selling your Phoenix house to an investor like the professionals at Oak Street Properties saves you time and money! Investors typically handle all the paperwork and can often close the deal within a week, providing you with quick access to cash.
No Repairs Needed
When selling to an investor, you don’t need to worry about making any repairs or updates to your home. Investors buy properties in their current condition, which means you can avoid the hassle and expense of fixing up the house.
No Commissions or Fees
Selling to an investor means you won’t have to pay any real estate commissions or fees. This can save you a significant amount of money, as traditional real estate transactions often involve paying a commission of around 6 percent of the sale price.
Certainty of Sale
One of the biggest advantages of selling to an investor is the certainty of the sale. Traditional home sales can fall through for various reasons, such as financing issues or problems discovered during the inspection. Investors typically pay in cash, which eliminates the risk of the sale falling through due to financing problems.
Flexibility
Investors can offer flexible closing dates, which can be particularly beneficial if you need to sell quickly or if you need more time to move out. This flexibility can provide peace of mind and reduce the stress associated with selling your home.
Ready to sell your Phoenix house? Call Oak Street Properties at (480) 637-5500 or send us a message today!