A Comparison Between Professional Cash Home Buyers and Real Estate Agents: Whom Should You Consider?

Both professional cash home buyers and real estate agents have their virtues if you’re considering people to sell to.
Professional home buyers:

• Will purchase your home in its current condition
• Not charge additional commissions
• Will close the deal in a short amount of time
• Ensure reduced fall-through deals

Real estate agents:

• Will encourage you to make necessary repairs before listing your property
• Charge a commission
• Will take time to close the deal
• Ensure that your home is sold and transferred safely to the buyer

So you should consider the above factors before making up your mind.

When it comes to selling your property, you can choose one of the two most commonly available options.

The first is the traditional method, where you can contact a real estate agent and go through all the steps of the sale procedure. The second option is directly selling the property for a cash offer.

This blog will be a comparative reflection on the two methods, and can help you choose the method that suits you best.

Who Are Professional Cash Home Buyers?

How can you quickly sell a house for a lump sum amount of cash? And more importantly, who do you go to for it? The answer to both questions starts with professional cash home buyers.

Now, who are professional cash home buyers? They are individuals or firms that will purchase homes from you outright and offer short closing deals, within one to two weeks.

They are ready to buy properties as-is, which eliminates the need for additional expenses towards repairs. This way, the process can become a more convenient and quicker process for sellers.

You get a cash offer for your home, you sell it, and receive cash in return.

What Do Real Estate Agents Do?

Contrary to professional cash home buyers, real estate agents work in a more traditional process, which is lengthy yet safe.

You will choose a suitable real estate agent and get your home evaluated to receive a listing price. These variations are based on competitive listings and can offer a value closest to the market price.

Real estate agents will also encourage you to make repairs to raise your property’s appeal. They aim to help you attract more buyers and get the best possible value for your home.

They will often market your property on Multiple Listing Services (MLS) and organize open houses. While all of these processes can be time-consuming, they are important to creating buyer interest.

Unlike cash home buyers, realtors will not help you get cash offers on your property, but will ensure a safe and complete transfer of property.

Key Factors of Comparison

In comparing cash home buyers and real estate agents, there are certain key factors to consider. These factors can include how fast the sale process is, what the basic required conditions for your property are, the market valuation received, and the overall process complexity.

There are other factors as well, but concentrating on the chosen aspects can create a suitable outline for the idea.

Sale and Closure Speed

In the case of interactions with professional cash home buyers, the process is very simple and the closure time is minimal. If you are willing to sell immediately, you contact the buyers, and receive a cash offer for your home. The closure process is also quick, taking between 7 to 14 days.

On the other hand, when interacting with realtors, the process is comparatively lengthier. They will offer you a broader exposure and can offer you a larger pool of buyers, but the overall process till closure will take some time.

Required Home Condition for Sale

If you are opting for a cash buyer, your property will be sold in as-is condition, which implies that you need not make an upfront investment in repairs or renovations. It not only saves expenses, but also saves time and is a less stressful process.

However, not needing repairs can imply a lower price for your property as well.

On the other hand, real estate agents want your property to attract buyers, which encourages repairs and renovations.

This leads to your house becoming an attractive prospect in the market, and your chances of receiving the best possible value rise. However, the upfront investment leads to a drop-off from the overall valuation.

Valuation Price

The valuation price of your property will generally be higher when undergoing the entire process with real estate agents in comparison to the sale of your property to cash home buyers.

Since the cash home buyers are purchasing your property without any repairs or reconditioning and are offering a cash offer, they will generally offer a price that is lower than the market value.

However, real estate agents will focus on providing you with the maximum possible value. They will encourage repairs, plan showings, and open houses, all to attract more customers.

Process Complexity

The process in the case of cash home buyers is simpler in comparison to real estate agents. When you opt for cash home buyers, you get quick cash offers, and sell your property as-is.

However, a real estate agent will undergo a more reliable yet complex procedure to make sure that your house is sold at the most suitable valuation. This is why a real estate agent prepares more contingencies.

These contingencies involve preparing the property for home staging, listing and scheduling a final inspection.

Home staging helps you show the potential buyer that your property is worth living in. The listing ensures that the buyer offering the best price is considered, and the final inspection shows the buyer that the property is ready for living.

The closure process also involves the completion of documents and the signing of relevant paperwork. This ensures that all parties involved are on the same page, and the deal can be closed. Overall, this process has some complex moving parts, but is a reliable measure.

However, if you are aiming for an immediate sale, a cash buyer will be the more suitable choice.

Comparative Table: Cash Buyers vs. Real Estate Agents

Here is a comparative table, simplifying the points of difference between cash buyers and real estate agents.

Wrapping Up

Choosing between Real Estate Agents and Cash Home Buyers? You need to weigh both options. One system is simpler, while the other is more reliable.

If you sell your home quickly, you will get a lump sum cash value, but there can be additional investments and over time costs throughout the process of selling your property with real estate agents.

Make Up Your Mind Between Real Estate Agents and Professional Cash Home Buyers

You need to think whether you need to have an urgent sale, or can you spare the time for appropriate valuation, and do you want to make some upfront investments. Make your choice based on these aspects.