There are several different ways that you can sell a house and they all have pros and cons.
It is important to carefully consider the source of any information you receive, because there are some real estate professionals who are only interested in convincing you that their option is the only option. Being an educated consumer and homeowner is critical to ensuring that you make the right housing decisions for yourself or your Senior. Recently a homeowner in Haltom City reached out to because they were really confused about what to do with their parents’ house. Their parent could not live there anymore. They were having mobility problems and it just was not a safe place but deciding what to do about a parent’s house can be overwhelming.
If you do not educate yourself about all the options, what can happen? You can become overwhelmed by balancing multiple responsibilities; perhaps you are caring for a parent in a health crisis while simultaneously caring for children in your home. You can make unnecessary repairs to a house that do not increase the value of the home, which can wipe out your savings. You can rush into decisions without having a long-term plan in place. Understanding the three main ways that you can sell your house or your parent’s house, and the pros and cons of each, will make the decision-making process clearer for you and your family.
#1. Sell the house with a real estate agent. This option is best for people who want a traditional sale. The Senior is in good health and there is plenty of time to invest in the closing process. This is also a great option if the home is in good condition. Selling with an agent will generally lead to getting higher offers on the house and a truly skilled agent will be a tremendous help throughout the sale and closing process. However, selling with an agent means putting in work in order to get the house ready to sell. Some people do not want a bunch of people coming through their house, especially the parent’s house, and may be apprehensive about doing a lot of showings. A traditional sale to traditional buyers usually requires making repairs and upgrades. Occasionally people will take the house as-is but, most of the time, buyers who plan on moving into the home personally expect the house to be in decent shape. The house will need to pass a home inspection. Selling with an agent will also require a longer closing time than some of the other options.
A word of warning: be wary of inexperienced real estate agents. In the state of Texas, it takes about four times as long to get a cosmetology degree as a real estate license. Make sure that you find the right person and do not be afraid to interview potential agents before choosing to work with them.
#2. Fix up the house before you sell it with an agent. This option is best for someone who is not in a hurry to sell the home, and perhaps has a background as a contractor. If the project is completed well, there is the potential to make more money on the sale than with the other options. However, this method is not recommended for most people for several reasons. Most homeowners are not able to make affordable repairs because they simply do not have the experience and knowledge. Often people start out intending to fix up the house themselves to save money but end up paying a lot more than the cost of professional contractor. The biggest mistakes to avoid are making repairs that are not necessary and upgrades that do not match the neighborhood. If rehabbing houses is not your full-time job identifying the best updates to make can be tricky. Even professional investors make these mistakes.
#3. Sell to an investor. The ideal person for this would be a homeowner who does not have a lot of money to put in the house for repairs or updates. This is a great option if the house is in average or poor condition and you need a very quick closing. Selling to an investor means no repairs are needed and that can eliminate a lot of stress. The processes of showing the house to potential buyers and passing a home inspection are unnecessary with investors. The trade-off for the speed and simplicity is that you will get a lower price for the house. The investor is going to put time and money into fixing the house up and make a profit on a resale.
Watch out for inexperienced investors. There are people who go to these three-day seminars and claim to be real estate investors. They will get your house under contract and lead you to believe that the house is sold but there are all these little escape clauses in the contract. Then what they do is try to take your contract and sell it to somebody else for more money. This is called wholesaling, which is not against the law. In fact, there is nothing wrong with it. Just be careful who you choose to work with, because many wholesalers are not upfront about their plan. What can happen when an inexperienced wholesaler cannot sell the house for more than they said they would pay for it is that they just cancel the contract. They never actually had the funds to pay for the home themselves. This can be painful for homeowners who believed the house was basically good as sold and now have got to start the process all over again.
Always interview any of these professionals, agents or investors or contractors before committing to working with them. There are plenty of options available for selling your home. With the right information, and a little planning, you can make the best possible decision for you and your family.
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