So you’re getting ready to sell your home. You may have seen those ‘We Buy Houses!’ signs in your neighborhood. Or you may have been approached at some point by a homebuilder who was interested in purchasing your home. Is it a good idea, you wonder? Well, here are a few pros and cons to consider if you’re thinking about selling your home to a builder:
– Good chance for a fast sale and quick closing (builders pay cash).
– No costly inspections are necessary
– Gives you the ability to sell your home in ‘AS-IS’ condition
– Settle for less than your home’s full value on the open market
– There is no one in your corner negotiating on your behalf
– The builder is in a power position
If you want to make a quick sale, or you’re worried that the current condition of your home will make it difficult to sell on the open market, selling your home to a builder could be your best option. It may also seem like a good idea to cut out the middleman and deal directly with said builders. Really though, it just puts you at a disadvantage. At the end of the day, a knowledgeable realtor will usually be able to negotiate a higher sale price than you would be able to get on your own.
A good realtor can also give you a realistic idea of what can be done to improve the current condition of your home so that it will be competitive on the open market. Even if you do end up selling to a builder, a realtor will probably be able to get you more money at closing, even after commission. There’s a reason builders prefer to negotiate directly, and it’s not for your benefit!