Should I Use a Realtor to Sell my Parents' Home?
/Because one of my specialties is working with seniors, I frequently also sell homes for people whose family members have passed away. These homes are often not in the best shape, and sometimes family members consider just selling the home to a flipper or a “We Buy Homes” company rather than enlisting a realtor for the sale.
In my opinion, it is almost always better to use a realtor. The flippers or the companies (that are essentially also flippers) are going to offer you much less then you could get otherwise, because they need room in their budget to flip the home, and then make a sizeable profit. They also don’t feel the pressure of competing with anyone else, so they will low ball you as much as possible.
When you sell a home using a realtor, yes, you must pay realtor commissions, but the realtor will advertise your home far and wide, so there is often competition, and bidding wars. The price you get usually more than makes up for paying the commissions. You often wind up selling the home to someone who plans to live there and renovate as they go. These people still want to feel like they’ve gotten a deal, because they’re buying a home and planning to work on it themselves, but they will frequently pay much more than a flipper will. Plus, in my experience, even if you’re selling to someone who will live there, you can still sell the home as-is, just as you would to a flipper. These people do often need to use a loan, rather than cash, but if they’re well qualified, it isn’t a problem. If the home isn’t in livable condition, they can use a Home Renovation Loan to buy the home.
I have had situations where flippers and people who would live there bid against each other. Even if the home ultimately goes to a flipper, they will pay much more than they would otherwise, since they’re forced into competition. They will also put much more money down than they would otherwise, which makes it less likely they will back out of the deal.
If you live in the Washington DC area, I am happy to talk with you about possibly selling your relatives’ home. I work primarily in Silver Spring, Kensington, Chevy Chase, Bethesda, and the other close-in suburbs on the Maryland side (College Park, Hyattsville, Rockville, etc.). But I am licensed in Washington DC and Virginia as well, and happy to help. Please contact me if you’re interested. Thanks!