While selling the house, a seller can contact two types of Real estate investors Sacramento. Either he can contact cash home buyers or he can choose real estate agents. In this blog let us see the comparison between the working of cash home buyers and real estate agents. First, let us see who real estate agents and cash home buyers are.
Real estate agents are professionals responsible for establishing contact between the seller and the buyer. They are also responsible for maintaining the negotiations between them. For the whole process, they charge their commission. In comparison to this, the working of cash home buyers is totally different. They can purchase the property without the intervention of any third party. Their goal is to make the process of selling the home faster. Depending upon the service there are many advantages of selling to the cash home buyers. Let us understand this by comparing their services with real estate agents:
• More Investors: Real estate agents don’t invest their own money into the market. When the seller contacts them for selling his property, they find a buyer. This process takes time. In case the seller wants to sell his property urgently then choosing a real estate agent is a pretty bad option. Also, it takes a time span of around 60 days to complete the deal. In comparison to this, cash home buyers don’t take much time. As they have a lot of lenders, they can pay the amount in around 7 days.
• Growing online competition from cash home buyers: Real estate agents use the traditional way of dealing. Most of them haven’t established themselves online. In comparison to this, with cash home buyers a seller can sell his property online. All he has to do is upload the photos of his house. After this, the cash home buying company will contact him. Thus, this advancement in technology helps cash home buyers in closing more deals than real estate agents.
• No commission: While dealing with the real estate agents, the seller has to pay a commission amount. This amount generally equals to 2% – 5% depending upon the deal or the contract. For example, If a seller sells his property for $50,000 with the help of a real estate agent. In this case, he has to pay the agent $2500 if the commission is 5%. This amount may look small here but depending upon the deal this can be huge. On the other hand, while dealing with the cash home buyer, there is no need to pay an extra commission. The company is just going to purchase the house and the amount is provided to the owner. This way he can save approximately 5% of the total deal.
• A Fast process: It may take 60 or more than 60 days for closing the deal through the real estate agent. On the other hand, while dealing with the cash home buyer, it usually takes 7 days. Thus, in case the seller is having an emergency then a cash home buyer can serve him well.
• No Risk: While dealing with real estate agents, the deal totally depends on the third party. This means third party can cancel the deal anytime and due to any reason. In case the seller is having an emergency then there are chances that he may get stuck in the middle. Here if the cash home buyer said yes to the deal then he is not going to turn around. This way he can sell commercial property fast for cash.
• No additional repairs: This is the most time-consuming process in dealing with the real estate agents. In case the buyer wants the house to be repaired or renovated then the seller has to follow this. On the other hand, cash home buyers don’t ask for any additional repairs. They are going to buy the house as it is. This way they can close the deal quickly.
• More paperwork: Selling the house through real estate agents is a traditional process. This means a lot of paperwork and formalities. While dealing with cash home buyers, they don’t engage in such formalities. Their goal is to keep the process of dealing faster.