Whether you’ve inherited a new home, are moving for a job, or simply need a change of scenery, selling your home can be a big decision. Once you’ve decided to list it, there are even more choices to make.
When it comes to how you want to sell your home, there are a lot of options. You can go the traditional route and sell through a real estate agent. You can try to sell it yourself. You could even use a home-buying company. Each method has its own pros and cons, so it’s important to do your research before making a decision. Here are five different ways to sell your home:
1. Selling your home on your own
If you want to keep the entire profit from the sale of your home, then selling it on your own (also known as a For Sale by Owner, or FSBO) is probably your best bet. Be warned; this option is not for everyone.
Selling your home on your own means you’ll have to manage and pay for your marketing, showings, and paperwork. You’ll also be responsible for negotiating with buyers and their agents. If you’re not familiar with the process, it can be easy to make mistakes that cost you time and money.
If you’re up for the challenge and you’re confident in your ability to sell your home, going the FSBO route can be a great way to save on real estate commissions. Just make sure you’re prepared for the work involved. A few examples of when FSBO is a good idea:
- You live in a small town with little interest in your home price range
- You have a unique property that will be difficult to find comparable sales for (e.g., it’s brand new or you’ve made extensive renovations)
- You’re selling an investment property that you don’t have emotional attachments to
- You already have digital marketing and real estate expertise
2. Selling your home with the help of a real estate agent
If you want to take a more hands-off approach to selling your home, then working with a real estate agent is probably your best bet. Real estate agents will list your home on the Multiple Listing Service (MLS), help you price it competitively, handle showings and open houses, and negotiate with buyers on your behalf.
All of this comes at a cost. Most real estate agents charge a commission of 5% to 6% of the final sale price, so you’ll need to factor that into your budget. If you’re not comfortable managing the sale of your home on your own, paying a real estate agent to do it for you can be well worth the cost.
Before deciding to work with a real estate agent, be sure to interview a few different agents to find one you’re comfortable working with. Make sure you understand what their commission will be, so there are no surprises down the road.
3. Selling your home to a home-buying company
If you need to sell your home fast and don’t mind giving up some control over the sale, then selling to a home-buying company may be the way to go. Home-buying companies will make you an offer on your home within 24 to 48 hours, and they can close the sale in as little as seven days.
The downside is that you won’t get top dollar for your home when you sell to a home-buying company. If you’re facing foreclosure or can’t afford to make repairs, selling to a home-buying company may be your best option. Some home-buying companies even operate online, so you can get a potential offer on your home without ever having to meet in person.
4. Renting out your home
If you’re not in a hurry to sell your home and you’re comfortable being a landlord, then renting out your home could be a good option. You’ll need to find good tenants, handle repairs and maintenance, and deal with the hassles of being a landlord unless you outsource those tasks to a property management company.
If you’re patient and willing to do the work, renting out your home can be a great way to generate extra income. When you’re ready to sell, you can either sell the property with tenants in place or wait for them to move out before listing it for sale. Platforms like Airbnb can make it easy to rent out your home on a short-term basis as well, so you can generate even more income if you live in a popular tourist destination.
5. Selling your home to a professional homebuyer
Professional homebuyers are private real estate investors who buy homes directly from sellers. Like home-buying companies, professional homebuyers can close on a sale quickly (usually within seven days) and they’re typically not concerned with the condition of the property.
That means you won’t have to make any repairs before selling, which can save you a lot of time and money. Since professional homebuyers are usually looking for properties they can fix and flip or rent out, they’re often willing to pay slightly more than you would get from a traditional buyer for a fixer-upper.
This is by far the cheapest way to sell your house, especially if it needs a lot of work. However, you’ll need to find a reputable professional homebuyer, which can be tough unless you already know someone from your personal network.
6. Selling your home through an online real estate platform
Zillow Offers and Opendoor are two popular online real estate platforms that will make you an offer on your home without the hassle of dealing with traditional buyers. With Zillow Offers, you can request a free, no-obligation offer on your home from Zillow. If you decide to accept their offer, they’ll take care of all the paperwork and coordinate with your local real estate agent to get your home listed on the MLS.
With Opendoor, you can request an offer online, and they’ll send someone out to inspect your home within 24 hours. If you accept their offer, they’ll coordinate with a local real estate agent to get your home listed on the MLS.
Both Zillow Offers and Opendoor will buy your home as-is, so you won’t have to make any repairs before selling. And because they’re both national companies, they can close on a sale quickly (usually within seven days).
Endnote
Selling your home doesn’t have to be a stressful, time-consuming process. There are a number of different ways you can sell your home, and the best option for you will depend on your individual circumstances.
If you’re in a hurry to sell, then selling to a home-buying company or professional homebuyer could be your best bet. If you’re not in a hurry to sell and you’re comfortable being a landlord, then renting out your home could be a good way to earn some passive income while you find your dream house.
