How long does it take to sell a house? Great question, complicated answer with a lot of variables. Are you selling as a For Sale By Owner? Listing the home with a Realtor on the MLS? Are you selling to an investor or an iBuyer? Is the buyer paying cash or getting a loan? Is your house turnkey or do you need to make repairs? All these things can affect how long it takes to sell a home. Let’s take a moment to talk about each.
For Sale By Owner: (Longest time frame with the most risk)
Selling a home, For Sale By Owner will likely take the longest amount of time to actually close on the property. Here’s why:
- The buyers’ pool is smaller, so the house will likely take more time to sell. Most buyers have agents, agents don’t typically look on FSBO sites, they utilize the MLS to find properties and send to their buyers. Due to this, there will be less eyes on the property.
- If you find a buyer and they don’t have an agent, there is a good chance they don’t know what they are doing. Unrepresented buyers will likely take longer to secure financing, handle contracts, and make their way from contract to close.
- Transactions are more likely to go sideways and terminate as a result of inexperience and miscommunications. This will add time on to the home selling process.
- You will likely be leaving more money on the table than you think you are saving on commissions. Homes listed on the MLS not only find buyers quicker, they statistically have a higher chance of generating higher offers or even a bidding war that will drive up the price above and beyond the commission savings you may have been hoping for.
Start to finish time frame: 75-100 Days
Selling with a Realtor in the MLS: (Mid range time frame with moderate risk and expensive)
Listing with a realtor is going to increase your chances of selling when compared to a For Sale By Owner listing. However, there are still some pitfalls and things you should know along the way.
- Experience level with agents varies wildly. The average agent sells 4-6 houses a year and the majority are newly licensed, so there is no guarantee you are working with a true pro.
- Realtors are expensive, so most sellers want to be able to get top dollar in order to absorb the cost of those commissions. Over pricing the home can lead to sitting on the market longer in order to find a buyer.
- Realtors do list your home on the MLS which is going to place your home on the largest marketplace for listings in your area. This maximizes your exposure, increases foot traffic and leads to faster offers at higher prices than FSBO. The typical cost for a traditional Realtor to do this for you is a 2-3% listing commission, which in Texas is going to average close to $10,000
Start to finish time frame: 45-70 Days
Selling to an iBuyer: (fastest time frame without maximum profits)
The allure of the iBuyer model is very enticing for a lot of sellers. They are able to deliver on the promise of speed and efficiency. Offers are cash and close in as little as 7-10 days making iBuyers one of the fastest ways to sell, but at what cost? Here is a breakdown of the pros and cons.
- iBuyers have to make a profit, so they are likely offering you less than what could be you would receive on the open market listed on the MLS.
- They charge a “service fee” that sure looks and feels a lot like a commission. In some instances this service fee can be as high as 7 to 12%, which is actually more than what you would pay even the most expensive agents.
- iBuyers operate using certain buying criteria, so there is always a chance you are not even a candidate to get an offer from them.
- They don’t actually see the house until after there is a negotiated contract. This means when a representative comes to do the inspection, they could attempt to re-negotiate or re-structure the agreement.
Start to finish time frame: 10-30 Days
ListingSpark: (the perfect blend of speed and higher profits)
With ListingSpark, you get the upside of everything you would expect from the expensive traditional agent at a fraction of the cost. When it comes to getting you listing live on the MLS, ListingSpark moves fast. From the day you create your listing, the average time frame to get you live in the MLS with professional photos, sign and lockbox is 2-3 days. With our dynamic pricing tool, you get the right data to price your home correctly leading to a quicker sale. Here is a breakdown of just a few reasons ListingSpark is the best way to go.
- Exposure matters to not only maximize profits but to sell quickly. With ListingSpark, you are advertised on the MLS and all of the most trafficked real estate sites like Zillow, Trulia, Realtor.com, HAR, etc.
- ListingSpark has an easy to use listing platform that allows home sellers to easily set up their listing, manage showings and review and respond to offers.
- ListingSpark typically sees offers on their listings within the first 7-14 days of the listing (Sometimes as early as the first 24 hours it goes live in the MLS).
- Our average customer spends $300-$500 total to effectively sell their home.
Start to finish time frame 10-50 days on average
There are many factors that come into effect when determining how long it will take to sell a property. Whether you’re looking to move as quick as possible or don’t mind taking your time, there is probably an option out there that fits your needs. However, it is important to recognize that some options come with certain caveats. Make sure you weigh all your options and make an informed decision to get the most from your home.
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