Investors: Your Best Option for Kona Hawaii Real Estate for Sale?
Most home sellers believe there is an established formula for selling Kona Hawaii real estate for sale. First, you obtain a real estate agent; second, you get your house on the market; third, you show your home; and finally, you make and close a deal. However, there are viable alternatives to the traditional method of home sale.
Some individuals choose to sell their homes “For Sale By Owner,” or FSBO. Though a feasible option for experienced home sellers, FSBO can be incredibly risky and time-consuming. Emboldened by growth in the Kona market, individuals lacking extensive backgrounds in real estate sometimes sell their properties independently. These individuals often suffer from avoidable losses. Impulsively embarking upon the FSBO route without conducting proper research can have dire consequences for home sellers.
Many Kona sellers choose to work with real estate investors. If you have Kona Hawaii real estate for sale, is working with an investor your best option? Below we examine the two critical factors you should consider in deciding the best method for selling your property.
Factor 1: Time
When determining the appropriate route to take in selling your property, it is important to consider you desired timeline. Working with a real estate agent, you can expect the home sale process to take 3-6 months from finding an agent to closing the deal. Selling FSBO takes even longer—on average, 6-12 months. Working with a real estate investor, on the other hand, takes only 7-30 days. Because you don’t have to go to the trouble of listing, showing, and finding a buyer for your house, working with a real estate investment company is by far the most efficient method of selling a home.
If you have plenty of time to sell your home and it is important to you to know who will be purchasing and living in it, you might consider utilizing a real estate agent or selling FSBO. However, if you are a working individual, a parent, or you simply enjoy maximizing the potential for leisure in your free time, working with a real estate investor might be your best bet. Your time is incredibly valuable, and real estate investors work to save you as much time as possible.
Factor 2: Price
The primary goal of selling your home is to strike an optimal deal without exhausting your time or resources. It is a popular misconception that working with a real estate investment company means surrendering to a sub-optimal deal.
While real estate agents have the knowledge and experience to help you strike the best deal possible, they also charge commission. Rates vary, but the average commission is 6%—3% to the buying agent and 3% to the selling agent. Thus, as property values increase, so does the total cost of employing a real estate agent. The value of Kona Hawaii real estate for sale averages $500,000. A 6% commission on a $500,000 dollar property increases home sale expenditures by $30,000. Individuals that fail to take commission costs into account thus might not be getting the best deal possible.
It may seem that your best option would then be to sell FSBO to cut commission costs. However, selling FSBO has its own fiscal drawbacks. Even if you don’t use a real estate agent, you may still have to pay the buyer’s agent commission of 3%—$15,000 on a $500,000 home. You will also have to pay for a listing on an FSBO website, which can cost up to $1,000.
Finally, it is important to note that, whether you employ an agent or go FSBO, you must sustain carrying costs until the sale is complete. Carrying costs include property taxes, home insurance, and utilities. These costs must be paid whether or not you still inhabit the property you are selling. If you have already moved out of your property and into another, you will have to cover these costs for two properties at once.
The True Price of Home Sale
When you sell your home to a real estate investor, you dodge commissions, fees, carrying costs, and often closing costs. Real estate investors will estimate the value of your home, assess the need for home repair, and make an offer accordingly. Closing must take place at a title company that prepares the necessary documentation. It is true that a real estate investor’s final offer is likely to be lower than an offer obtained via an agent or FSBO. However, the rapid closure time and purchase “as is” eliminates repair costs, carrying costs, and fees. It will also decrease your time and energy investments.
In general, if it takes longer than three months to sell your home, your carrying costs will likely outweigh the financial benefit of working with an agent or going FSBO. In today’s inflating, competitive market, buyers have lots of options. It may therefore take longer to sell your Kona Hawaii real estate for sale than it would have in past years. Working with a real estate investor may be your best bet in Kona’s competitive market.
Different Solutions for Different Kona Hawaii Real Estate for Sale
There is no universal method for selling your property. All properties and sellers have different values and lead different lives. The course that you take depends upon your fiscal resources, expertise, and the time you are able to invest. Individuals with ample financial resources who are confident they can sell their homes in less than three months might be more inclined to work with a real estate agent. Experienced home sellers with value assessment and marketing abilities are likely to find promise in selling FSBO. Individuals who need to sell quickly, are facing foreclosure, require cash fast, or lead busy lives will find relief in a rapid, hassle-free sale to a real estate investment company. Still unsure of the proper course of action? Contact Craft Realty, LLC today, and we will help you determine the most beneficial way to sell your property.