Are you currently in a position where you are considering selling your house? It is a big deal, and there might be a lot of questions going through your head. These are the 7 most asked questions related to selling a house in Kent that we got from many of our past clients.
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1-Do I have to sell my house with an agent
Sometime people are wondering “do I need an agent in order to sell my house?” or “can I sell my house without an agent?”. The quick answer is “NO, you don’t need an agent in order to sell your house”.
A Real Estate Agent or Realtor is there to help client list your house to an open market or submitting offer as a buyer agent (selling agent)
Besides other essential tasks, Agent will facilitate the buying and selling process through communication as middlemen between actual seller and buyer, prepare paperwork and purchase and sale agreement, communicating to Title and Escrow Company until closing.
You can sell your house directly to anyone through FSBO, Craigslist, Zillow, Relative and Friend, or sell to an investor. In any case, all you need is a legit Purchase and Sale Agreement that talks about price and term, send that to your local Title Company. We recommend Fidelity National Title Company in Renton.
2-What taxes do I have to pay when selling my house
Selling a house is a big deal for you, for buyer, and also for Uncle Sam. So what taxes do you have to pay when selling your house?
Consult with your accountant, CPA, or a tax professional for your particular situation. There are taxes during the sell of your house, and after the sale during your income tax return.
The first taxes’ group is Excise Tax which based on the selling price for your property, and other minor recording and processing taxes. After the sale, you might have to pay for Capital Gain depending on the Type of Property you are selling and the proceed amount you are getting.
3-What costs are involved when selling my house? Traditional Route vs Investor Route
Traditional Route through selling with an Agent:
- Agents’ Commission of about 6% depending on what you do and what you agreed with your agent. Typically 2.5% to 3% for Selling or Buyer Agent. 2%-3% for your Listing Agent for fulling listing services. Recommend checking this Article to sell your house for TOP Dollar–> 7 Steps to Sell Your House For Top Dollar in Kent
- Closing Cost
- Excise Tax
- Rehab Cost and GC Cost
- Clean up and Staging Cost
- Holding Cost: Property Tax, Mortgage, Insurance, Utilities, and YOUR TIME and STRESS…
Investor Route selling directly to a local cash buyer:
- No Agent commission or any selling fee
- No Closing cost
- No Rehab cost or GC headache
- No Clean up or staging cost
- No holding cost
- No Time or Stress Cost
All costs are shifted to Investor, and they inherited and assume any of your problem or risk.
4-What will an investor do to my house after buying it?
What will an investor do after buying your house will be different, but for Angel Home Solution, there are 3 major categories that we will do with houses that we buy as-is with fair cash offer:
- HGTV rehab Flip: We replace everything that is outdated that are not meeting code or doesn’t work, and sell to a couple family and kids for their dream home
- Landlord-Tenant Option: We will do the Essential Rehab that the property will need immediately, and place a tenant in for Rental
- Partnering with other Contractor or private investor. Sometimes we get a partner to leverage time, money, and resource.
We sometimes put the title under Angel Home Solution, personal name, or different LLC for Tax purposes. We work with private lenders as well, so sometimes we put titles under their name to protect their investment while offering great returns for their money investing in our project. (are you looking to grow your Saving Account? or just want your money to work for you?–you can too with the proceed you are getting from our Cash Offer… ask or call me at (425) 272-9299 to learn more)
5-Why sell to an investor over a realtor?
Selling to an investor:
3 major benefit of why many people are selling directly to an investor locally in their area are:
- Time: no waste of time, no waiting time during the listing, you decide when to close
- Cost to Sell: No commission on Agents, no Selling Fee, no Rehab Cost, no Holding Cost, no closing cost
- Rehab: no headache working with General Contractor, no rehab stresses
These 3 major benefits of selling your house as-is to an investor are interrelated like a triangle effect on all the projects we have been doing since 2015.
These benefit doesn’t come for free, but you just shifted the responsibility and risk to the investor who buys your house for cash, in exchange for the convenient and hassle-free sale.
If you have Time to sell, have Money for rehab for necessary update and repair, and handle the Rehab, do it yourself and Listing with a real estate agent will be the best route for you to get the most money for your house (even after you pay all of that Cost to sell, Agents’ Commission, Closing Cost, and holding cost.)
6-What is the selling process from start to finish
Traditional
- Rehab/clean up:
Rehab could be just the lipstick, which could be the new coat of paint. It will go a long way if your house is already in great shape clean up. So the first impression is a real deal. Your front yard back yard and some of the room that was a storage room, make sure you clear all that, make sure it looks open. The space has to be inviting, then remove all your belongings.
- Pre-inspection:
Order a pre-inspection, so that you know what to fix. At the same time, it’s cheaper to get a contractor to work on projects only once.
Just have the list and then just knock it off. Sometimes you fix something and you find out there is moisture, there is mold behind a wall. Now you have to tear back that drywall and fix all of that and then put it all back in. So it’s a lot of reworking. It will cost more money, change order costs a lot of money. We have a FREE Scope of Work, a spec sheet, that you are free to download at https://www.angelhomesolution.com/resource-page/ or check this article: Keys to Success in Rehab Project
Investor Route
- Get in contact
- Agree on price and term
- Investor checking out the property
- Proceed to closing, and you get your CASH deposit in your bank account
These simple 4 steps process can take as little as 7 to 14 days from you reaching to the investor to get your fair cash for your house. Most of the time, you can set the closing date on the date of your choice.
7-Pro and Con to working with an investor
Pro:
- Know exactly how much you will get for your house
- when you will close and get your cash
- you can plan out everything else around that closing date and the proceed you will get
- No risk of the market down term
- No risk dealing with rehab/contractors
- No headache dealing with first time home buyer, inspector, appraiser, bank
Con:
- Equity: You won’t get as much equity (The different between Your sell Price – the amount you owe)
- Investors will have to make a profit on the time, resources, and investment they made when buying your house as-is. It is said that high risk, high return. It is very true here.