Sometimes Selling A Home Can Be A Hassle; Especially When The Home Needs Costly Repairs.
It’s no wonder why more and more sellers are opting for ways to sell without a realtor these days.
But the challenge with that is, there’s numerous steps and paperwork in a real estate transaction.
Quite frankly, there’s a lot of hidden land mines.
So what’s the proper way to go about doing it yourself?
What are some of the questions, costs and problems to consider?
Well, there’s really three main ones.
[Problem one]: realtor commissions ain’t cheap.
So if hiring a broker isn’t within the sale’s budget, obviously there’s a greater urge to DYI (do-it-yourself). The problem with DYI is that it’s not easy—unless there’s been prior experience in marketing and selling property.
[Problem two]: it’s a price and beauty war when it comes to selling property. Retail buyers are looking for updated kitchens and baths, floors and new paint, and for a good price. Basically, retail buyers can be nit-picky and a pain to deal with.
So naturally, if a seller has a home requiring repairs just to make it look “retail-ready”… then this “freshening-up” ain’t cheap either.
And who really wants to deal with repair contractors to begin with?
[Problem three]: long market times hurt the property’s chances of selling for top dollar. If the property is miss-priced, or if it’s in need of too many repairs, therefore making it unattractive, then it runs the risk of sitting on the market for weeks with no offers.
Beyond 90-120 days on-market, the listing starts to look stale.
Retail buyers start thinking:
“… why is this property still on-market?…what’s wrong with it?”
Therefore, with these hurdles in mind, this leaves the seller with these remaining options when it comes time to sell:
1) Real Estate Agency: hire a real estate broker to list it on the MLS (so there’s a seller’s broker + buyer’s broker commission to be paid)
The benefit here is the seller gets a completely done-for-you service.
The drawbacks are (i) broker fees are a cost and (ii) if the property sits for weeks, then it starts to look stale on the MLS and (iii) retail buyers demand updated finishes which could delay closing and result in more costs to the seller.
2) For Sale By Owner Broker: hire a flat fee (FSBO) broker to list it on the MLS (in this case, there’s only a buyer’s broker commission to pay upon closing—with an affordable upfront flat fee paid to the flat fee broker for listing the property on the MLS)
The benefit here is the seller saves on one side of the commission (since there’s only a buyer’s broker commission).
The drawback again is (i) retail buyers may demand fixing repairs as in scenario 1 and (ii) there’s still a risk of long market times if the property is not priced properly and (iii) the seller is on their own with showing the property.
3) Wholesale Investor Sale: sell it directly to a wholesale investor that buys & sells or fixes property for investment.
The benefit here is the seller is dealing directly with a professional buyer who actually prefers a property in need of repairs. Not only that, there’s little-to-no broker fee whatsoever. And lastly, the property can be sold directly to this buyer without any seller advertising. So if a property is really worn-and-torn, there’s no embarrassment for the seller whatsoever.
The drawback here is the fact that most sellers wouldn’t feel comfortable with this scenario 3 because they’re unfamiliar with the selling process (aka the steps and paperwork). Not only that, how can the seller know they’re dealing with an honest individual?
If you’re interested in selling your Chicagoland property with scenario 3, then fill-out our form so we can contact you about making an honest offer to buy your property.
We’d love the opportunity to look at it.
If it turns out your property is not the right fit, then that’s okay… no hard feelings.
We’ll even give you a free selling property checklist so you can be better prepared if you plan to do-it-yourself.
P.S. For select Chicagoland neighborhoods.
P.P.S pay little-to-no broker commissions.