If you are considering selling your house in Chicago, you may wonder whether to list it with a real estate agent or make a direct sale to a real estate investor. The decision ultimately depends on your circumstances. Let’s explore the advantages and disadvantages of listing vs. a direct sale to a real estate investor to help you make an informed choice.
Pros and Cons To Consider:
Listing With an Agent
When it comes to selling a house in Chicago, many opt for the traditional method of working with a real estate agent. These professionals are well-versed in the intricacies of the process, possess in-depth market knowledge, and benefit from MLS access. By tapping into their expertise, sellers can reach a vast pool of potential buyers, entrust the marketing strategies to them, and secure the best possible selling price.
Despite the advantages, there are drawbacks to consider when engaging an agent. Firstly, sellers will incur expenses in the form of agent commissions, impacting the final proceeds from the sale. Moreover, the timeline for selling through an agent can be lengthy, typically spanning from six months to a year. The process may involve multiple property viewings, and there’s always a risk of a deal collapsing due to buyer financing issues.
Not only do sellers have to factor in agent commissions, but they may also be required to cover a portion or all of the closing costs to facilitate the transaction. Consequently, the actual amount received from the sale might differ from the initial sale price.
Selling Directly To A Real Estate Investor
Choosing to sell directly to a real estate investor often proves to be more advantageous. Selling directly to a real estate investor typically guarantees a swift transaction with a cash payment, sometimes finalized within just one week. Moreover, investors commonly cover 100% of the closing costs, while sparing you from agent commissions.
It’s crucial to consider that real estate investors aim to generate profits through house flipping or renovating and renting. Consequently, they seek discounted properties to maximize returns on investment. Therefore, when selling directly to an investor, the sale price is likely to be lower compared to listing with a traditional agent.
Carrying Costs
When considering listing versus selling directly to a real estate investor in Chicago, it’s important to factor in the carrying costs associated with listing through an agent. These expenses include HOA dues, mortgage payments, property taxes, utilities, insurance, and more that accrue while the property is on the market.
Although listing with an agent might fetch a higher sale price, the extended timeline (often up to a year) can erode your profit through these ongoing carrying costs. On the contrary, selling to an investor may result in a lower sale price, but the quicker process can leave you with more money in hand at the end of the day.
The decision to list or to sell directly to a real estate investor in Chicago comes with its own set of advantages and disadvantages, with the optimal choice hinging on your specific circumstances and requirements. If you’re new to the real estate sales arena, making this determination can be challenging.
That’s an area where the real estate investing professionals can provide some guidance. To discover more, give us a call at (800) 255-8250 or fill out the form.