Selling with an agent vs. selling to a cash buyer

There are many ways that selling with a Realtor differs from selling directly to a cash buyer. Some are better off to work with an agent, while others are better off to work with an investor. Below, we will explore the differences in each type of home sale transaction.

Selling With an Agent

Most people are best off to work with a real estate agent on their home sale (as long as they are working with an agent that knows what they are doing). Real estate agents have been trained on property analysis, negotiation, and the best legal practices to follow when you are going through the sale on your home. They can effectively market your property on the MLS (multiple listing service), where it will get the most exposure to potential buyers and other agents. There are a multitude of reasons to use an agent, but let’s dive into the process of actually selling your house with a real estate agent.

1. Find your agent
   • It’s best practice to interview with at least a few different agents to make sure that you are going to be working with someone who understands your situation and can help you out the best. Your agent should act professionally, responsible, and should be a resource for you to lean on if you have any questions.
   • Once you decide on your agent, you will typically sign a listing contract with them, giving them the exclusive right to sell your property. This is why it is so important that you talk with multiple agents and make sure that the one you use will really be helping you the most. You are putting a lot of trust into them.
2. Decide when you want to sell, and the price you want for your home
   • Your timeline to sell plays a major role in how you want to sell. If you need to sell quickly, your best bet is to find a local cash buyer who can close in little time. Typically, a closing takes 30-45 days after you get your property on the market and agree on a price and terms with a buyer. So, if you price your house right and you get an offer you like quickly, you will still need to wait at least a month to get paid out. Historically, the best time to sell your house for top dollar is in the Spring to Fall season.
   • Pricing your home is your decision, but your agent will give you their most educated recommendation on the market value of your home, using a comparative market analysis. They will evaluate similar homes selling in your area, and use those comparable properties to come up with a suggested listing price of your home. It is important to price your home according to the market value, or it may not sell. The last thing you want is for your property to be sitting there waiting to sell for 4 months while you still have other things in your life to take care of.
3. Preparing your home for the market, and showing it to buyers
   • We talked about how it takes 30-45 days to sell a property, but what we didn’t talk about is the time period before that where you prepare, or the costs of getting your home ready to sell. If you are looking to get the most money for your property, you will want to make sure that your home is in great shape, both structurally and cosmetically. Depending on the condition of your house, you may need to budget extra time towards the preparation stage. Keep in mind that your end buyer will likely have an inspection on the property before they purchase it, and may require you to make some or all of the repairs or updates needed. This can be very costly, especially if you have to replace big ticket items like the roof, HVAC, foundation, electrical or plumbing. Consulting with a licensed general contractor can give you the time and price that you need to get your property into its condition to sell.
   • Once your property is fixed up and ready, it is time to market your home to potential buyers. Your agent should take professional pictures of your property and may suggest that you also have the house professionally staged. It is also important to keep your house clean when you start to show it. Once all this is done, your agent will create a listing and begin to market the property on the MLS. You should begin to have interested parties reaching out to your agent who would like to see the property and make offers on it. Your agent will show the property, highlight all of its features, and work for you to make sure you get the best offer that you can.
4. Choosing your offer
   • As long as all has gone well, you should be receiving offers for your house. Hopefully you have at least a few to choose from! Your agent will present you with the offers, and you can choose to accept, deny, or counteroffer on any of them. It is important to take all factors into account when looking at the terms. Buyers can have many different contingencies or points where they can back out of the purchase, and it is your agents job to educate you on the points of each offer. Once everything is agreed upon, you will sign the purchase agreement with the buyer.
5. Getting the appraisal and inspection done
   • Once you are under contract, the buyer’s due diligence process begins. This consists of the appraisal (a licensed appraiser will evaluate the market value of the property) and inspection (a licensed inspector will look at the property and put together a report of defects in the property). The buyer typically pays for both the appraisal and the inspection. Usually, the buyer will have both an inspection and appraisal contingency. This means that if the property doesn’t appraise at the value that they agree to purchase the house, they can either renegotiate or back out of the contract. It also means that if the inspection comes back with items that need to be fixed, they can also renegotiate or back out of the contract. This is why you need an agent who will accurately price your property, and make sure that all necessary repairs are made before the listing.
6. Going through the other paperwork
   • While you are waiting for the inspection and appraisal, your agent should be going through any disclosures with you. If your home was build before 1978, you will be required to provide a lead based paint disclosure. In Utah, you are also required to provide a methamphetamine disclosure if your home has been used to store or manufacture methamphetamine. On top of this, you will also need to disclose any known issues with the condition of the house, such as roof leaks, foundation cracks, mold, and also any outstanding liens on the property or pest infestations.
7. Closing
   • Once all this is done, you will schedule the closing of your house with the title company who is handling the transaction. No later than 3 days before the scheduled closing, your title company will provide you with the closing disclosures, outlining all of the monies associated with the house. This includes a breakdown of the buyer’s funds provided, seller’s funds provided, any closing costs, and any other contractor payments that will be taken care of during the closing process. On the closing day, you will sign all of the paperwork with the title company, and provide the buyer with the keys to your property. You can also get the check for any money that you have made in the sale of your home!

Selling to a cash buyer

For those who don’t want to deal with all of the hassle of selling with an agent, showing the home, making all the repairs, and waiting months to close, selling to a cash buyer may be the right move. There are pros and cons to either approach. When you are dealing with a cash buyer, expect that your closing price might not be as much as if you were to list it on the open market. But, with a cash buyer, you won’t have to put another cent into the property. That means no closing costs for you, no realtor fees to be paid, and a quick and easy closing. At Scout Peak, we can close in as little as a week! And you don’t have to worry about fixing up your property, we will buy it in as-is condition. So how does it work?

1. Reach out
   • Give us a call, send us an email, or fill out our form on the bottom of the page. We will review your situation, see how we can help you out the best, and go over some possible solutions.
2. Get your offer
   • Skip the listing agreement, the marketing, and the fixing up. We will give you an offer that makes sense for your particular situation, without any pressure or hassle, if that is the best choice for you.
3. Close and get paid!
   • We will do all the work to get you to the finish line, in a quick and efficient manner. We will pay you through our local title company, and make sure that the closing is a seamless process. It’s just that easy.