When selling your house, you have several options to explore. You can choose to sell on the open market — which is the traditional or conventional way. There are also sub-options under this method, such as using an agent and going the For Sale By Owner (FSBO) route.
On the other hand, you can choose to sell as-is. Usually, selling as-is doesn’t warrant some of the requirements that listing does. Now, which should you choose? The only way to figure that out is to understand how listing your home stands vs selling as-is. Here’s a detailed comparison to provide you with clarity.
What Does Listing Your House Mean?
Listing your house simply means putting it out on the open market to attract potential buyers. Listing itself is a significant term in that your house would be listed on the Multiple Listing Service (MLS) — a database by real estate brokers that provides data about properties available for sale.
The listing would typically be done by your agent, in this case, ‘seller’s agent’, and then a prospective buyer’s ‘buyer’s agent’ could see the listing and communicate it to their clients. Both agents would then be in communication to agree to the terms of the deal.
Similarly, you could choose to list on the MLS by paying a flat fee and sell FSBO. So, while your house is listed, you’re not working with a real estate agent. In this scenario, it implies you would have to handle the showing, staging, negotiations, paperwork, and all the other activities that typically require the expertise of an agent.
Pros and Cons of Listing
Pros
Here are some of the upsides that listing your house can afford.
Large Buyer Pool
Listing your house on the MLS opens you up to a wide array of sale possibilities since it’s a massive database. So, if your property is fairly priced and in good condition, you should expect to get a number of prospective buyers reaching out.
However, generally, agents tend to steer clear of FSBO properties. Some of them have dealt with FSBO sellers who ended up complicating the sale process or refused to pay the necessary commission.
So, while you may indeed be working with a large buyer pool, you may not get as many prospective buyers as you would expect.
Potential Significant Capital Gains
One of the benefits of working with an agent is the fact that they are expert property valuers. For starters, they would be able to help you determine your actual home value. They very likely also have some experience selling houses like yours. So, familiar terrain.
Similarly, they are experienced and expert negotiators. So, when it comes down to negotiating a great deal for your home, you can expect that they would do an excellent job of this. They would be able to play to the strengths or unique features of your home.
Cons
Agent Commission
There are various expenses associated with the listing, and a major one is the agent’s commission. This sees you parting with a percentage of your capital gains.
Long Closing Period
Houses can stay on the market for up to 50 days before a sale, so if you’re trying to make a quick sale, there are no guarantees that would happen. You would have to be prepared to wait.
What Does Selling As-Is Mean?
Selling your house as-is simply means what it sounds like. It implies selling your house in the very state that it is in at this very moment. To simplify things further, think of it as simply moving out and selling your house without raising a finger afterwards.
When selling as-is, you don’t have to make any repairs or renovations. You can even choose to skip cleaning or working on curb appeal and other areas that are critical when listing your house or selling traditionally.
Furthermore, unlike listing your home that follows an extensive process, here, all you have to do is reach out to a local cash buyer. They examine your property, send over an offer, and if it works for you, you accept the offer and can close the deal in as little as seven days.
Pros and Cons of Selling As-Is
Here are some pros of selling as-is.
Pros
Hassle-Free Process
When selling as-is, you’re not mandated to make any repairs or improvements. Similarly, you can close in as little as seven days and access cash rapidly.
Skipping Agent Commission
Extra expenses such as parting with a portion of your capital gains doesn’t happen here. Since you’re selling directly, you keep all your money.
Cons
Your Home May be Undervalued
Some buyers may try to lowball you. This is why it’s imperative to work with cash buyers who value your house using its after-repair value (ARV).
Small Buyer Pool
Unlike listing, you don’t have a lot of individuals vying to buy. However, local cash buyers in your area are always available to buy, so you would definitely get a buyer.
Which Should You Choose?
Choosing between going the listing route or selling as-is is a major decision because it practically determines how you sell your house. It could also determine your experience during the sale process.
Listing follows a more extensive process in that if you want to make the most profit, you would need to spend on repairs and renovations.
You would also be paying for inspections, closing costs, agent’s fees and several other charges. If you have enough money to execute these repairs and you’re not working with a tight timeline, you could consider this option.
Alternatively, there’s selling as-is. Here, you’re free from repair obligations and all the other bureaucracy that goes into listing your home. You can accept a cash offer within seven days, too.
So, if you’re looking to access cash fast within a short timeframe, this option is an excellent one. It’s imperative that you work with a local cash buyer to get the best deal since they understand the area best.
For instance, if you’re looking to sell a house fast in the San Francisco Bay Area, we can help out with that!
We buy houses that need serious repairs or are in various other conditions. At dsouzahomebuyers, we can provide you with a cash offer for your house in no time!
You don’t have to deal with any of this hassle. No need for repairs or renovations!
Fill out this form to get the process started, and we could be closing in as few as 7 days! Remember, no fees, no commissions, no closing costs!
If you have any other questions, definitely call us at (925) 503 8193.
Final Thoughts
The choice between these two options boils down to preference and selling conditions. If you’re down for the stress and waiting involved in listing, you can consider that. If you want a hassle-free transaction that wraps up fast, selling your house as-is is the solution.
