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Selling A House in 2022 - What Are The Best Options Available For A Fast Sale
Two years ago the industry was questioning how the pandemic would affect the housing market. As it turned out, there was an increase in house sales in 2020 compared with the previous year.
It was predicted in the first quarter of 2021 that this rise in house sales would carry on throughout the year with a dip in 2022. While a decline in house sales may not overly concern many people, there are a number of sellers who would like to see a quick sale.
The reasons for needing a fast house sale are numerous and varied. Divorce, relocation, emigration, poor health, and debt are all reasons used for needing to realize capital quickly.
Understanding the need for a quick sale doesn’t necessarily provide any solutions though. How does someone achieve a quick house sale, particularly in 2022 with the current climate?
What are the most viable options for a fast sale?
There are a good amount of options for selling a home these days. The internet has made it viable for house owners to market their homes independently.
Nowadays, it is possible to sell a home through eBay or Craigslist, as well as more established options such as Century 21. Cash for houses investors such as Vol Homes is another way to sell a property quickly. Auctions are another option, but traditionally most people go with realtors.
House selling options would include the following:
Real estate agencies
Cash for homes investors
When it comes to making a quick sale though, the options start to dwindle. Realistically, the only guaranteed way to sell a home fast is through a property investor. These companies are often called cash for homes buyers.
Is selling a home for cash still a good idea in 2022?
House prices are rising in 2022, and although many experts are calling it a bubble, there seems no sign of valuations dropping. This would point to sellers using a realtor to get the best price - more on this below.
However, when you are discussing selling a home quickly there are other considerations to take into account. Although Statista reported that house prices rose last year, and continue to do so, sales are showing signs of slowing down.
If you need to sell your home quickly, the fact that it is worth more now than in 2020 is irrelevant if you have no buyers. Selling a home for cash will speed up the process in a way that other methods cannot.
How fast could you sell a home for cash?
If you get the right realtor you may sell your home quickly. Some houses are on and off the market almost before they have been noticed. Nevertheless, all the red tape, inspections, lawyers and contracts, take time.
A property auction could see a home being sold very fast too. Although there are fees and commissions to take into account.
The issue with either of these options is that there is no guarantee of a sale. Fast or slow. Selling for cash is very often a guaranteed proposition once an offer has been made. And, the process is fast.
Many of these types of property investors advertise that they can close a sale within 7 days of an offer being accepted. A realtor will take weeks if not months to achieve the same result.
Isn’t it better to use a realtor to sell a home?
One of the major advantages of using a realtor is that they will work to sell your home. You do not pay any fees or charges until they sell your property. This is a major incentive for an agent to market your home and push for a sale.
There is a significant downside to this option though. According to Investopedia, real estate agents will charge a fee of around 6%. This comes off the sale price of your home. It could also mean some realtors recommending you drop your price to get a quick sale so they can be paid.
6% may not sound like much but consider this. If your home was sold for $300,000 you would have to pay the agent and broker around $18,000. That is quite a chunk of change.
The finances are where it can get interesting comparing real estate agents to selling a home for cash.
What are the differences in fees between the selling options?
If you sell through a realtor you will likely receive higher offers than you will through property auctions or from cash for homes buyers.
However, you need to remember the fees involved. You have already seen realtors’ fees, what about the other options?
Property auctions will usually attach a fee of 2% of the sale price, plus VAT. There may also be marketing fees to pay.
The advantage of using an auction is that there is a high chance of a fast sale, and you can put a reserve price in place. The negatives are low final sales prices as buyers are looking for a steal, plus the fees. Also, homes that fail to sell cannot be listed again for around 4-6 weeks.
Cash for homes buyers do not normally charge any fees. They are investors looking to make fast purchases for cash, with reduced red tape, and simplified procedures. They also understand that many people selling a home quickly do not have the finances to pay hefty lawyer fees and commissions.
Selling for cash is faster, but will you lose money?
Because there is no broker involved with cash sales, it is a simple matter of an offer for the home and nothing extra to pay. The downside is, the seller will receive an offer below the market value.
This is because the company purchasing the profit is doing so as an investment. A buyer in the residential housing market will normally be looking for a home for themselves and their family. Cash buyers are doing so because they aim to make a profit in the future.
Yet, this option still offers many advantages for anyone wanting to sell a home fast, and receive cash for it.
What are the downsides to selling a home fast?
You may wonder how the real estate industry remains at the top amid a declining economy, and you wouldn’t be alone. Realtors work by pricing and marketing homes by following the current industry valuations. They aim to turn over homes as quickly as possible and collect their fees.
The cash for homes industry also offers fair valuations according to their markets, and they aim to make a profit on sales later on.
This is where some downsides come into play for the seller. The negatives for making a cash sale can be listed as such:
Selling below market value
Receiving only one offer (no competition)
No marketing or advertising of property to potential buyers
The upsides, however, may outweigh these cons, and any seller would need to consider their need for a fast sale against receiving a lower offer.
To sell a home very fast in 2022, and be guaranteed to do so, only has one real option. Cash sales are still the quickest way to make a sale. Realtors will normally make more money for the seller in the long run, but they cannot match the speed of a cash buyer.
Cash for homes buyers are usually convenient when a property needs repairs, or a sale has to be made extremely quickly. The choice for the seller is to balance up the need for a fast sale against the value of the property.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes