Using an agent:
Selling using an agent is the most expensive way to sell a house, however depending on your situation, it might be the way you want to sell. If your house is in great condition, you have no urgency to sell, and you do not want to market and show the property yourself, this might be best route to take.
Pros: You don’t have to market the property yourself. You also have someone else handling most of the paperwork for you. Additionally, you will usually get close to full market value.
Cons: This process takes longer, (about 3-12 months depending on location and market conditions) and is the most costly way to sell. You should expect to have costs about 10% to 15% after commissions, any buyer concessions, escrow fees, closing costs, and holding costs. (Taxes, insurance, mortgage interest).
Timeline: You should expect to sell the property in about 3 – 12 months, depending on the market.
By yourself (FSBO):
Selling FSBO takes work and time, but can save you some money. If you’re not in a rush, are familiar with the process of selling real estate, and your house is in great shape this might be a good choice for you. If your selling your house to a retail buyer, expect that people will be nit picky about your house, especially in California.
Pros: You’ll save money. This is one of the less expensive ways to sell a house, and is generally about 3% to 8% cheaper than selling using a real estate agent depending on how long it takes you to sell.
Cons: FSBO’s typically take the longest to sell. You should expect 3 – 12 months depending on your market. Additionally, if you’re not familiar with the real estate process, or not very good with people or marketing, this might not be the best route to take.
Timeline: Expect to sell your house within 3 to 12 months depending on the market.
To a cash house buyer:
If your property is in need of some work, you need to sell quickly, or just want an easy transaction selling to a “we buy houses in California” company is the way to go. Selling to a cash buyer is by far the easiest way to sell a property. Cash buyers are experienced, and can usually close quickly, without inspections and appraisals. Additionally, cash house buyers are not like retail buyers. Retail buyers are pickier, and require inspections, appraisals (sometimes 2 appraisals) and more time. Important to note that cash house buyers rarely can pay full market value for your property.
Pros: Selling to a “we buy houses in California” company can get you a faster close using cash. No waiting on banks. Less inspections and no appraisals. No back end fees, and sell “as-is” without putting one penny into fixing the place up.
Cons: Cash house buyers can rarely pay full retail value.
Timeline: Expect a 7 to 30 day close, or really whenever you’d like to close.
Each way of selling has its advantages and drawbacks. The important thing to do is to assess your situation and determine what route is best for you to take.
