House Buying Company vs Traditional Real Estate Selling Process

House Buying Company vs Traditional Real Estate Selling Process

There’s a lot of inaccurate information out there about the differences between an as-is home offer and a traditional real estate selling process. Since we often buy homes as-is, we thought we’d share how our offers compare to traditional retail offers to give you a better idea of the differences between the two.

In case you’re not familiar with the term as-is sale, it’s good to know it’s a sale where you and the buyer agree on a price for your home exactly as is. No repairs, no cleaning, and no hassle. An as-is sale is very different from a traditional sale, so it’s helpful to see the differences.



Here’s a point-by-point comparison of as-is and traditional home sale offers, so you’ll know which one is best for you when you’re ready to sell your home.

Selling Fees

Real Estate Process In a traditional sale, the process is a little more complicated and expensive. The fees are paying title insurance, transfer taxes to your state or county, and the title closing fee. You will also have to pay the title company to do the work. In addition to: Bankrate's guide to seller closing costs provides a detailed breakdown of these expenses.

Holding Costs

With this method, the sale process can take anywhere from 60 to 90 days. You are responsible for all property taxes and insurance fees that accrue. The holding costs can add up significantly over time, affecting your net profit.

Realtor’s Commission

These are usually the ones who take a large percentage of the sale. Your real estate agent will take a percentage of the sale price as a commission between 10% to 15%, translated into thousands of dollars at the end of the process. Typically, the National Association of Realtors states that commissions are around 5% to 6%, but this can vary depending on the agreement.



House Buying Company



Once you work with a real estate investment firm to sell your home for cash, they will wipe out any additional fees associated with the process. Since you will close in as little as 7 days, there are no closing costs. Finally, you don’t need a real estate agent to sell your home as-is, so you pocket every penny of your cash offer.

Repairs and Maintenance

Real Estate Process

In a traditional sale, any offer you receive that is financed by a loan must have an inspection. Depending on what the inspector finds, you will be required to make improvements, which translates to thousands of dollars, depending on the home’s condition. You can make the repairs yourself, or the estimated cost can be deducted from the original offer. This Home Inspection Checklist can help you anticipate potential repair requirements.

House Buying Company



In an as-is sale, your house is purchased as-is. As a real estate investor will pay cash, you don’t need to inspect with no bank assistance. This means you won’t have to make any repairs. Again, all the money from an “as is” offer goes directly into your pocket.n

House Valuation

Real Estate Process

If the lender’s valuation is lower than what the homebuyers are offering to pay for their home, they will ask for a concession or a price reduction. Without a price reduction, they will not get a loan on their home and have to back out of the sale. The Fannie Mae National Housing Survey provides insights into common valuation issues faced by buyers. n

House Buying Company

In an as-is sale, no bank is participating. The buyer has the cash on hand to buy your home and doesn’t need a mortgage. Therefore, the home will not be valued, and you will simply be paid the agreed price.

Closing the Deal

 
Real Estate Process In a traditional sale, selling your home can take 60 to 90 days. Due to the sale details, the buyer must get a loan to cover the cost of the house and, above all, find the ideal buyer for your property.

House Buying Company It works at your convenience, and you can choose the closing date. Again, since the as-is sale is a direct transaction between you and the buyer, with no middlemen or unnecessary paperwork, it can be done fast and on your schedule.