Categories: News & Blog, SellersPublished On: August 10, 20210 Comments33.5 min read

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Realtor vs. Investor Offer

Selling your home to an investor vs with a Realtor is a question that has come across my desk more times than I can count. They both end with the same result but it really depends on the seller’s situation and what fits their needs the best. A Realtor may tell you their option is the best way to sell your home and an investor may tell you the same. It can get overwhelming so I’ll break down the differences below so you don’t waste your time talking to 20 different people to get the info that’s best for you!

Investor/Cash Home Offers

An investor will be able to buy your home quickly, as-is, and normally close within 30 days. We’ve done it ourselves more than 50 times over the last 5 years. The biggest downfall to this option is you won’t get anywhere near market value on your home. Some investors will look for 25% – 35% in equity AFTER repairs are made. So this means if they evaluate the home as needing $35,000 in updates and repairs they need to have between 25% – 35% difference on what they’ve put into the property vs what they can sell it for. Here’s a simple break down to make sure you’re following me. Lets say your home is worth $200,000 at tip-top shape. But to get it to that point it needs $35,000 in repairs/updates. So what an investor will do is subtract 25% from $200,000 which equals $50,000. That brings them to $150,000. Then they may estimate it needs $35,000 in repairs. So $150,000 – $35,000 = $115,000. So $115,000 is about what they’d be willing to offer. Some people reading this may be shocked to see these numbers. Then great, this option isn’t for you. But the fact is most people taking this route simply have a home they just want to get rid of. Whether they’ve fallen on hard times, inherited an unwanted property, divorce, or the home just has too many repairs. There are tons of reasons why someone may take this route and it’s simply because of convenience. The home is literally under contract the same day the investor came to look at it and the seller can move on with their lives. So if you see a We Buy Houses ad or Sell Your Home Fast in Lafayette, LA areaChances are that’s a cash buyer or investor that has access to the funds to buy your home as-is. Just remember, market value goes out the window taking this route. What an investor is willing to pay compared to a professional salesperson involved to help sell your home is night and day different. Now onto the Realtor option.

Selling Your Home with a Realtor

The upside to selling your home with a Realtor is you’ll get way more money because Realtors are targeting people looking for a home to live in. They’re not looking at it the same way an investor would. So many people try and avoid paying a 6% Realtor fee but just don’t realize it’s a very small fee compared to all the other options out there. Realtors are heavily trained on how to help someone sell their home for the highest possible price. A 6% fee doesn’t sound so bad when a Realtor can possibly point out things that increase your sales price by 15% right?  Meeting with a Realtor you’ll get tips on what needs to be done to make the home more desirable so potential buyers don’t come in and negotiate the price down. Which for some is where the problem lies, you may not have the funds to make the necessary repairs and updates. And even if you do your home may still sit on the market for months before you actually sell it. But if time is on your side and you don’t mind making minor updates and repairs. Then going with an experienced Realtor is probably your best option to make the most money possible. Here’s a quick example of what having a professional salesperson involved can do. Lets say you walk into Nacol’s Jewelry and purchase a Rolex for $5,000. Then you turn around and try to sell it yourself for the same amount or higher. You think you can do it? Maybe you can but probably unlikely don’t you think? The point is, having a professional salesperson involved in the sale of almost any item increases the chances that whatever is being sold is going to be sold at a higher price. A Realtor is no different. You will make more money if you decide to list with a Realtor vs what an investor is willing to pay. Matter of fact, ask that investor what he/she plans to do with the home after they’re done with the renovations! I bet they plan to hire a Realtor to sell it or a Property Manager to rent it because they know those 2 are trained to get their clients the most money possible! So again, if time is on your side and making the most money is your goal then hiring a Realtor is probably your best option. Now let me explain how we do it here below.

How We Help You Sell Your Home

Normally when researching these 2 options you’ll mostly find people that do one or the other. Either it’s an Investor or a Realtor. Well, here at The Tylock Group we do both!! I’ve crossed paths with so many sellers that just don’t know what option is best for them. The reason is that they keep running into people that can only offer one thing. So of course their pitch to you is their option is the best way to sell your home because they can’t offer anything else! What we’ll do is understand what’s motivating you to sell! Helping us understand that will greatly increase your chances of us pointing you in the right direction. We’ll go over what we think your home can sell for on the open market (Realtor option) and what we’d be willing to buy it for (Investor option). Having a Realtor that also buys houses is a win-win for you! We’ll present the 2 options we can offer and we let YOU decide after we’ve helped educate you on the routes you can take. Whatever route you choose, that’s what we’ll do! We always do what’s in the best interest of the seller. That’s the difference when dealing with someone that is licensed compared to someone that is not! We are held to a different standard! Interested in learning more about your options? Fill out the form below and lets chat! Or as always feel free to call (please text if I don’t answer) 337-654-0569 

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Paul Tylock