Real Estate Agents Can Help You Sell Your House, But there is a Cost.
The Real Estate Industry has done a great job at marketing and convincing most of us to believe that if you need to sell your house fast in California; all you need to do is call a Real Estate Agent.
In this article, I want to address why that may not be the best option for many situations and why it may actually slow down the process and actually cost you more money.
I am not saying that a good Real Estate Agent doesn’t have multiple resources and contacts that can’t address each specific real estate issue with a plan. I am saying, however, that sometimes a homeowner is better off to call someone that can address all of the issues without adding a layer of cost for each solution at each step of the process.
For example; the other day I received a call from a real estate agent that I know very well and I have purchased houses from in the past. She told me that she had talked listed a house for a client that called her wanted to sell their house but there were numerous issues that needed to be dealt with first.
She detailed her conversation quite well and repeated what the seller had told her;
“I’d like to sell the house but”;
- The homeowner inherited a house that is owned free and clear but it’s not yet in my name, the estate has no money at all and I can’t afford to hire an attorney
- Her relatives are living there and have not paid the mortgage or the taxes and I’d need to evict them, but I don’t know how and I can’t afford an attorney and I’m not sure I want a vacant house.
- There have been no updates to the Kitchen or bath and they are falling apart
- The house has a lot of deferred maintenance and is in complete disrepair
- There are code violations that have turned into liens
- The house is not located in the right part of town
- They don’t have the money to deal with any of this
- They live out of the area and the house is a burden
- There was a period that the house was vacant and had been broken into and it’s was vandalized
- The house is in such bad condition it’s not worth anything
- The house is going to be sold at Tax Auction
When she was done she said “I have a listing agreement with the client with a 6% commission. Will you look at it because with all of the issues I can’t possibly put this house on Multiple Listing Service. It will just sit. I just want to sell it fast. The price is negotiable, but this is what she wants for it.” This is what is known as a real estate agent pocket listing.
[Read more: How and Why to Sell Your Sacramento House to an Investor]
Two things to come to mind here; 1) the seller pays commissions, not buyers, so no matter when I purchase the property or at what price, the seller will be paying for that phone call and 2) in order to purchase the house a new layer of cost has been unnecessarily been added, a minimum of a 6% commission.
Please understand that this is not an indictment of real estate agents or begrudging anyone of a commission. We pay commissions on 98% of the properties that we sell. Aside from the cost of labor and materials to renovate a house, commissions are typically the third largest expense that we pay and I am grateful for the buyers that real estate agents bring to our houses.
[More: What Are The Different Fees Paid To Agents Versus Paid To Investors?]
I am saying that in this situation, the house and seller did not need an agent. This house needs the representation from a cash buyer that is willing to advance the cost of each of the issues so the house can be sold, not a buyer’s agent that adds a new layer of cost and uncertainty.
I am going to be specific:
- We will buy your house in its current as is condition
- We will purchase the house with its existing tenants and
- We will pay for or advance the cost of the eviction and manage the entire process to the end
- We will contact and negotiate directly with the city regarding the code violations and in most instances pay for the corrections of those as well.
- We will repair the house at no cost to you
- We will pay you in cash
If you are a homeowner and you need to sell your house fast in Sacramento then I urge you to go to Google and type in the following;
- We Buy Houses in Sacramento
- Who will buy my house in Sacramento
- Cash Home Buyers in Sacramento
- I need to sell my House fast in Sacramento
- We Buy Old Houses Sacramento
- What’s my House Worth in Sacramento
- Cash for Houses in Sacramento
- Buy My House fast Sacramento
At your fingertips will be dozens of Cash Home Buyers that will make an all cash offer on your Sacramento house. Some like Westbrook REI, will pay top dollar and guarantee that in writing and in the process, you won’t pay any sales commissions, closing costs, eviction costs and you will not even need to clean it up.
[Read more: 3 Ways To Tell Real Estate Agents And Investors Apart In Sacramento]
My name is Peter Westbrook and I am a local real estate investor in Northern California. We work with homeowners to solve complicated real estate and ownership issues. Each of our offers is individually crafted around the needs of the seller and we have the resources to advance those cost until the home can legally be sold.
If you have a house that you need to sell fast I would encourage you to call us because we are the best at what we do because we work at it every day. We understand that a commitment to our customer and a commitment to our business only happens with hard work. We have years of experience and a plan that we follow. We are a real company with real people that are committed to helping you achieve your goals.
We buy houses in Stockton, CA and its surrounding areas in Lodi, Woodbridge, Acampo, Lockeford, Linden, Ripon, Manteca, Modesto, Ceres, Tracy and Sacramento CA. If you need to sell your house fast in Sacramento, call us… we’d love to make you a fair no-obligation no-hassle offer. Take it or leave it. You’ve got nothing to lose, but we’d love to earn your business. 🙂
Selling a house with multiple issues can be a complex quagmire that forces many homeowners into thinking there is no way anyone can help. The last thing they want is to sit around and talk to strangers about something that they can’t do anything about and at this point a real estate agent is not necessarily the solution.
So even if the real estate Agent recommends a good attorney, (for the probate and the eviction), a good contractor (for all of the work that needs to be done) and an angel to pay for it all, the homeowner is still back to square one.
My House needs a lot of work and deferred maintenance
My answer to that is not all houses are created equal and not all homeowners have the same needs.
- Patch all holes and cracks in walls and ceilings.
- Fix all broken appliances and HVAC systems.
- Repair leaky faucets and plumbing.
- Replace worn carpeting and flooring.
- Repaint nicked and marred walls paint.
- Replace cracked or broken windows.
- Repair or replace the roof.
- Change outdated light fixtures / ceiling fans
- There is termite damage and dry rot
- Replace the Old Water heater
- Repair or replace all electrical outlets
- Fix code violations
So you can see… regardless of the house, the situation, or the future… selling the house with an agent will inevitably cost more money. It may come in the form of a commission or repairs or both. Selling with an investor can literally save you thousands!
One response to “Real Estate Agents Can Sell – But There’s a Cost”
Hello! Peter Westbrook,
It’s a informative articles’ about house selling. It can be helpful for home or house owner to sell house quickly. As a home buyer i have read fully and found some informative tips. Thanks for share with us. Hope you will stay with more information like this.