The real estate industry is consistently evolving each year; investors find new creative methods to generate wealth from real estate. A popular route gaining much attention nationwide is called wholesaling. The concept is simple; a wholesaler works as a “middle” individual in a quick real estate transaction. The wholesaler will agree upon a sales price with the homeowner then contract the property with a brief sales agreement. The wholesaler will sell the contract to qualified investors for a straightforward fee, similar to real estate agent commissions on a traditional real estate transaction. The method of wholesaling is preferred by individuals desiring a home sale in its current/as is a condition, homeowners looking to “sell my house fast Philadelphia” for any possible reason such as liens, mortgage-paying troubles, severe structural issues, pending lawsuits, etc. The process of wholesaling or selling a home directly to an investor can be completed within twenty-one days, depending on how quickly a local reputable title company can conduct a title search to clear the home’s title to transfer the property’s deed. Utilizing a title company to complete a wholesale transaction protects all three parties involved (Homeowner, wholesaler, & investor.) Since most wholesale transactions can be conducted using a title company, it makes utilizing a lawyer unnecessary, which can save hundreds of dollars. Most investors cover closing costs and fees, so technically, most homeowners will walk from the deal with roughly the same amount of money as a traditional home sale but in a slim percentage. A wholesale deal consists of the investor purchasing the property; there’s no need for costly repairs, renovations, or updates. An off-the-market exchange requires zero inspections, home preparation, or financial contingencies. Most investors fund their transactions rather than using a mortgage lender, bank, or private lender, so there’s no need for pre-approval, financial verifications, lender inspections, or contingencies. Avoiding these stressful steps makes off-the-market transactions more appealing for potential sellers.
*BENEFITS OF SELLING TO AN INVESTOR*
- No closing costs, commissions, or fees
- No repairs or updates are required; “we buy houses Philadelphia” regardless of the condition or circumstances
- Seller chooses the closing date (21 days to 1 year)
- No inspections or financial contingencies
- Avoid the stress caused by a long process of the standard real estate sale
Cons of listing with an agent
There are many benefits of using a licensed real estate agent to complete a standard on the market real estate deal. Most agents are very knowledgeable about the local real estate market; agents understand homes values by conducting recently sold comps. These comps are homes after rehab value and typically within a quarter-mile of the subject property. A similar comparison would be set to determine the value of the house. Real estate agents tend to have strong networks and connections with other licensed realtors; this benefit allows agents to utilize these connections to locate potential buyers. These are two positive aspects of using an agent, but two possible traits an investor or wholesale can provide. The harmful elements involving a traditional on-the-market sale would begin with the essential requirements; homeowners are suggested to make any updates or repairs to get their property to state standard expectations. After the renovations, the homeowner will need to prepare the house for walkthrough or showings to potential buyers. The showings usually occur in the evenings or on the weekends; showings can be difficult if you own a pet, have children, or have a busy schedule. Selling your house to an investor can happen sight unseen; this term refers to the purchase of the home based upon its current condition and comps, not the appearance of the house, and most investors would not physically need to lay eyes on the property or conduct any walkthroughs or inspections. If you’re selling property on the market & a buyer is located, and qualified checks will be completed; at this time, months have already passed, and expenses continue to build up and cost money for a situation a homeowner could have relieved themselves of if sold directly to an investor on a quick cash sale. The traditional route typically takes two to six-plus months to complete; an off-the-market sale can be conducted and completed within twenty-one days. A real estate sale utilizing a licensed agent usually requires the standard commission of six percent of the total sales price; this six percent doesn’t include the roughly one to three percent sales tax and any other surprising fees. Utilizing an agent can cost homeowners approximately seven to ten percent profit. Most wholesalers or investors cover all closing costs with no surprise fees or commissions; at times, even the sales tax is included in the sale. All prices and sales tax included directly result in the agreed-upon sales number being the received check or wire transfer at closing.
Conclusion
The pros may outweigh the cons depending upon the individual. Each homeowner has different needs, and every method may not satisfy those selling needs for the seller. Each route should be examined and considered to determine what would be the most profitable and accurate! There are pros and cons involved with all three popular home selling methods (for sale by owner, directly to an investor/using a wholesaler, or listing the home with a realtor.) If you’re a homeowner with the funds to make any necessary repairs to the home or updates to the kitchen & adding an extra bathroom, utilizing an agent may provide the most money on the sale, even when the fees and commissions are subtracted from the total sale.
On the other hand, suppose you’re a homeowner who desires a quick house sale or the house may require too many costly repairs. In that case, the best option will be for sale by the owner or selling to an investor by typing into the google search engine “WE BUY HOUSES Philadelphia” this simple search will provide numerous local investors. It’s also suggested to gather multiple cash offers to ensure you receive the highest cash offer guaranteed on your property. Most investors purchase single-family homes, multi-family properties, empty lots, and commercial property, so any selling needs may be accurately met. Require the investor to cover all closing costs and fees, ask for proof of funds and demand a deposit be left with the title company. These two simple requests can qualify the capability of the investor. Always conduct your research before making a significant decision like selling a home!
