Instead of listing your home on the market, you can sell your home directly to a private buyer, oftentimes for all cash. It’s a financial maneuver that can give you the money you need to fund another purchase – or simplify your life if you’re dealing with an inherited property you don’t want to actively manage.
So what are the full advantages of selling a home directly, and is this always the right choice?
The Advantages of Selling a Home Directly
These are some of the greatest benefits of selling a home directly:
- No repairs or cleanup required. For starters, you won’t have to worry about any repairs or cleanup. When you sell a home, you’ll traditionally need to spend some time making it look attractive to potential buyers – that often means weeks and hundreds to thousands of dollars spent on little jobs like filling cracks, pressure washing, and repainting. If you’re dealing with a hoarder house or a property in a state of disrepair, these responsibilities can be debilitating. If you’re selling directly, you can often sell the house as is – and not have to worry about it.
- Simple decision making. When you receive a conventional offer on a home, you’ll likely have a complicated decision to manage. The buyer may be offering a specific price, asking for specific concessions or extras to be included. Is it worth it? What if you have multiple offers to juggle? Is it worth taking a lower price if it means a smoother closing process? With selling directly, you won’t have to worry about it. This is a straightforward, almost binary decision to make.
- A single point of contact. Instead of working with a team of real estate agents and multiple potential buyers, you’ll be working with a single point of contact. Feel free to ask for direction and advice from other experts, but with a single buyer, the communication process is simpler.
- No showings or open houses. Some homeowners stress about the possibilities of showings and open houses. It’s uncomfortable to have strangers wandering around your home. But in the case of a direct sale, you may have a buyer who doesn’t need to see the home in person – or else, you’ll only need to provide one showing.
- Faster closing. There’s no debate here – direct sales tend to close faster, especially if you’re selling for all cash. You can finish the deal in a matter of days sometimes, giving you the chance to move onto more important priorities – and leaving you with a large sum of cash.
- Fewer unexpected hiccups. When negotiating with a buyer in a traditional real estate deal, you’ll usually end up going back and forth about a number of details. You’ll have to iron out contingencies and other subtleties in the agreement – and there’s always a chance that financing will fall through. But with a direct sale, there will be fewer hiccups.
- Lower fees. Since you’re working directly with a buyer, you’ll stand to face lower fees. You may not have to pay a commission to a real estate agent and you won’t face any other unexpected charges.
- Fewer legal concerns. In some cases, real estate transactions can lead to legal issues – but these are much less likely in a direct sale environment.
Is Selling Directly Always the Right Move?
Does that mean selling directly is always an advantageous financial move? The short answer is no. If you list on the market with a solid real estate agent, you might be able to fetch a higher sale price. You could also hold onto the property and rent it out for ongoing cash flow. The options are practically limitless – but at the end of the day, you’ll need to base your decision on your priorities:
- Money. Are you interested in getting the highest possible sales price or the highest potential profit? If so, selling directly may not be in your best interest. The tradeoff of getting a fast, easy transaction is that you’ll often receive slightly less money.
- Time. When it comes to time, there’s no better option than selling directly. You can get an offer almost immediately and close out the transaction without middlemen or complications prolonging the arrangement.
- Stress. Stress is subjective, but for the most part, a direct sale is much less stressful than selling on the open market. If you’re looking to minimize stress, you need to choose an option that’s simple and straightforward.
If you’re looking for a quick, hassle-free way to sell your home that can still get you a decent sum of money, selling directly may be in your best interest. Make sure you review all your options before moving forward with any major financial decision.