Traditional home sales involve finding a real estate agent, making necessary renovations to the home, putting the home on the market and choosing between the different bids of potential buyers. However, you may not have the time or energy to undergo the traditional selling process if you need to move urgently or have a damaged home that isn’t worth the time and money to repair. If this is the case, you may want to sell to a real estate investor, who will typically buy your house as-is.
The best choice for your situation depends on several factors, including the condition of your property, your budget for renovations and your timeline for selling. This article will discuss the pros and cons of selling to a property investor versus listing with a realtor, how the processes differ and what to consider when choosing one over the other.
If you’d like to learn more about selling to a cash home buyer or get a free cash offer on your Florida home, contact us today.
Selling to an Investor to Listing with a Realtor: The Key Differences
Whether you’re in a rush to sell or aiming to get the highest possible price, the best selling method depends on your goals, timeline and the condition of your home. Use this side-by-side look at the major differences to help you decide which path makes the most sense for your situation.
| Factor | Investor | Listing with a Realtor |
|---|---|---|
| Sale speed | 7–30 days | 60–90+ days |
| Repairs needed | None (as-is sale) | Some repairs typically required |
| Commission fees | None | 5–6% commission |
| Showings | 1-2 inspection visits | Multiple showings and open houses |
| Sale price | Often below market | Potentially higher |
How to Decide Between an Investor and a Realtor
When it comes to deciding between an investor and a realtor, remember that buyers who use a realtor typically are looking for more turnkey homes, while investors will purchase damaged or distressed properties on faster timelines. To determine the best option for you, ask the following questions.
| Factor | Yes | No |
|---|---|---|
| Are you in a hurry? | A cash home buying company can make an immediate offer and expedite the closing process. | You may try to get a higher selling price by listing the traditional way with a real estate agent. |
| Does your home need major repairs? | Consider selling your home as-is to an investor, unless you have time and money to invest in upgrades. | You have the flexibility to choose from a cash investor, an iBuyer or a real estate agent in your area. |
| Do you need cash ASAP? | A cash home buyer can close the deal fast and transfer funds quickly. | You can opt to sell your home with a real estate agent, an iBuyer or a cash investor. |
| Do you need more flexibility? | Investors may offer more flexible closing dates and purchase agreements than traditional buyers. | If you don’t need flexible terms, you may prefer to market your home to traditional buyers. |
| Do you need more certainty? | A cash buyer allows you to sell your home quickly with fewer or no contingencies. | If you can accept a certain degree of unpredictability, a realtor can help you sell your home the traditional way. |
| Do you want to streamline the process? | With an investor, you won’t need to clean and stage your house or schedule repairs or inspections. | If you are willing and able to participate in the sales process, you can list your home with a realtor. |
| Do you want to get the highest price? | Selling with a realtor will typically earn you a higher price, and you may get multiple offers. | A cash offer will typically be lower because investors have to factor in costs for repairs and holding fees. |
Of course, one “yes” or “no” isn’t necessarily enough to make a final decision. Consider your top priorities alongside your answers to each of these questions when choosing which route to take.
- Are you in a hurry? Different life events, from family emergencies to career changes, can cause you the need to sell your home fast. If you’re in a rush, working with an investor is your best bet, as they can often close in 30 days or less compared to the average time of 60 to 90 days with a realtor.
- Does your home need major repairs? If your home needs major work, you need to consider whether you have the time, money and knowledge to invest in repairs. If you have the time and resources, you may be able to get a higher selling price with a realtor once you make the required upgrades. If not, cash home buyers will purchase homes as-is.
- Do you need cash ASAP? If you need money fast, a real estate investor can offer you cash for your house quickly. At Florida Cash Home Buyers, we sometimes close on homes in as little as five days. Typically, we close in 15 to 30 days, but we may be able to offer you a cash advance of up to $10,000 before closing.
- Do you need more flexibility? In the traditional real estate sale process, the buyer will have more negotiating power. With home investors, you have more flexibility since they’re not timing a move-in date like a traditional buyer.
- Do you need more certainty? While traditional real estate sales might offer a higher reward in terms of sale price, it is also risky. You might face some unexpected results of home inspections, low appraisals, mortgage approval contingencies and market volatility. By using a cash buyer, you eliminate much of that unpredictability.
- Do you want to streamline the process? The traditional real estate process involves many steps over several months. You might not be available for the entire process due to geographic distance or physical limitations. With a cash buyer, you will have simplified transactions, quick escrow periods and no financing delays.
- Do you want to get the highest price? Selling with a realtor will typically earn a higher price because investors factor in costs that they’ll adopt such as repairs and holding fees.
Pros and Cons of Selling Your Home to an Investor
Property investors provide fast cash offers, quick sales and greater flexibility. However, they may not necessarily be the best fit for your situation. Looking at the pros and cons of selling to an investor vs. listing with a real estate agent can help you make the right choice.
Pros of Selling to an Investor
Here are some of the pros you can experience by selling your home to a real estate investor.
You can usually sell your home faster.
Traditional real estate sales are multi-step processes that include cleaning, repairing and staging the house. You also have to deal with property showings, receiving and negotiating bids and waiting for the buyer’s financing approval. Comparatively, real estate investors can give you a quick cash offer on your home in its current state, allowing you to close in as little as one or two weeks.
You may be able to sell your home as-is.
Traditional buyers tend to avoid moving into a home that needs a lot of work. However, many property investors allow you to sell your home as-is. According to Zillow, skipping home preparation costs like painting and cleaning can save homeowners over $6,000, allowing you to avoid evaluating contractors, scheduling repairs, and paying for renovations.
You don’t have to pay commissions and fees.
Along with saving money on home prep, you can save on commissions and fees through a real estate investor. The real estate commission in Florida is around 5% to 6%, which is split between the buyer and seller. By using a real estate investor, you can skip this cost as they will pay escrow fees, title fees and transfer taxes.
You don’t need to wait for a mortgage approval.
According to a 2024 report, 74% of home buyers financed their purchase. In Florida, finalizing a mortgage can take three to six weeks, which may not be an option if you’re in a rush. Although some investors may take out a mortgage loan, most companies, like Florida Cash Home Buyers, pay in cash without financing contingencies.
You have more control over the closing timeline.
Selling to a property investor can give you more control over when you close on your home, as an investor can speed up the time it takes to sell a house in Florida. If you need some time before you close on a new house, some investors might let you set a different closing date to accommodate your needs.
Cons of Selling to an Investor
Here are some cons you’ll need to keep in mind when deciding what sales process to use.
Your home may not sell for top dollar.
While you may want to get top market value for your house, some investors may end up offering a lower price in exchange for speed and convenience. Also, cash home buying companies will include repair costs and closing fees in their offer, which lowers the purchase price but saves you from spending money on those repairs. Plus, you don’t have to worry about real estate agent commissions when you sell to an investor.
You face a limited buyer pool.
Investors will often have specific financial goals and particular criteria they look for in houses. Using the investor route may generate fewer potential buyers and fewer offers on the house. Fortunately, if you’re looking to sell your house in Florida, Florida Cash Home Buyers is standing by to make you an offer on your home as-is, in any condition.
You are potentially vulnerable to scams and disreputable investors.
Many reputable property investors are making legitimate cash offers for homes. Unfortunately, fraudulent buyers and scammers are active in the real estate market. Make sure that if you’re going to use a real estate investor, you find a credible company and keep an eye out for signs of a scam. Look at their website, check online reviews and never pay upfront fees.
When You Might Want to List with a Real Estate Agent
While cash investors are great for fast, as-is sales, listing with a real estate agent can be the better route if your goal is to maximize profit and you have time on your side. You should consider working with an agent if:
- Your home is in good condition. Move-in ready homes tend to perform well on the open market, attracting competitive offers from traditional buyers.
- You want top dollar. With the right marketing strategy, agents can help you sell for more than what an investor might offer, especially in a seller’s market.
- You’re not in a rush. Traditional home sales take more time, but if you’re not on a tight timeline, the process may be worth the wait.
- The home qualifies for financing. If your property is eligible for FHA, VA, or conventional loans, listing it may help you reach a wider buyer pool.
When You Might Want to Sell Your Home to a Cash Investor
Industry estimates suggest that 5 out of 6 homes still sell the traditional way. However, when you consider your situation, you could be overlooking the better choice of the investor route. Here are some scenarios when a cash sale may be the best option.
You inherited a home.
Unless you plan to move in, keeping an inherited property can be a financial and logistical burden, especially if it’s out of state or needs work. A quick cash transaction is a good way to sell an inherited home and avoid potential federal capital gains taxes.
Key advantages of selling to a cash investor:
- Fast sale lowers tax liability: After inheriting a home, your tax basis is “stepped up” to the property’s market value at the time of inheritance. If the home appreciates after that point, you may owe capital gains tax on the increase. Selling quickly can lower your tax liability.
- Close remotely: If you live in another town, county, or state, a cash sale makes it easier to close on your terms and your timelines. You’ll also avoid having to travel to and from the property.
- Help with probate: Some investors, including Florida Cash Home Buyers, can help you move through legal hurdles.
You’re facing foreclosure.
If you’re having trouble making payments on your house, you may want to get rid of your mortgage soon. Selling your home before the bank forecloses can help you protect your credit, prevent you from declaring bankruptcy and allow you to buy an affordable new home after the sale.
Key advantages of selling to a cash investor:
- Sell before the bank takes over: This will help prevent credit damage and bankruptcy risk. If you’re trying to sell before the foreclosure auction, you may not have time to make the renovations traditional buyers expect. However, an investor can help you unload your home without fixing or upgrading it.
- Get cash sooner: An inability to make mortgage payments often indicates deeper financial problems. Cash investors like Florida Home Cash Buyers may offer you the much-needed funds before your home closes.
- Fewer potential delays: When you’re racing the foreclosure clock, you can’t afford to have buyers back out or funding fall through. A sale to a cash buyer eliminates these uncertainties, as you can be sure of cash quickly.
Your home needs work.
Major repairs, outdated interiors or safety issues can scare off traditional buyers. It can also delay the sale with negotiations about a decrease in price due to the need for repairs.
Key advantages of selling to a cash investor:
- No repairs needed: Investors will buy homes in various states of disrepair. Whether your property needs major damage repairs or is simply outdated, many investors will purchase it in its current state.
- Fewer roadblocks: Even if you can find a traditional buyer to purchase your property as-is, it adds a layer of risk to the process. Homes that are unsafe or have code violations are often difficult to finance. However, cash buyers will purchase the home without a mortgage and assume responsibility for the property’s condition.
- No prep or staging: Selling your home to an investor frees you from having to find a reliable contractor, schedule repairs, arrange for inspections and clean and stage your home.
You’re experiencing a sudden life change.
If you experience an unexpected family or career change, your needs may suddenly shift. A sale to an investor can help you quickly adjust to your new priorities with a fast sale and a timely cash offer.
Key advantages of selling to a cash investor:
- Close on your timeline: A fast investor sale can help you tie up loose ends and move on quickly. Instead of putting your life on hold while waiting for a realtor to close a sale, you can quickly sell your house with Florida Cash Home Buyers.
- Minimal effort: No listings, showings or buyer negotiations are needed with real estate investors, saving you time and energy.
- Cash when you need it: Florida Cash Home Buyers may offer a cash advance on your house, giving you funds for moving, legal costs or a fresh start.
- Custom solutions: In some cases, you can stay in the home temporarily as a renter after you sell or work with an investor on a creative solution that works for both of you. This is not available with traditional sales.
You have tenants living on your property.
Selling your home with tenants living in it poses additional challenges, especially if they’re not happy about having to move. Fortunately, an investor sale can make that process easier.
Key advantages of selling to a cash investor:
- Avoid tenant conflict: With a cash investor, you won’t have showings or open houses that disrupt your tenants’ lives.
- Flexible closing: In Florida, the length and terms of your lease dictate how much notice you must give your tenant to vacate the property. By selling to an investor, you can fine-tune the closing date to align with your needs and obligations.
- Keep tenants in place: Some investors may buy with tenants still in the property, allowing for a seamless handoff. Your tenants can continue to rent, while you get cash for your home and sell quickly.
Some people believe that selling to an investor is only for people in desperate situations. In reality, all kinds of people use home buying companies for many different reasons.
Types of Investors to Consider
Not all investors are the same. The type of company often determines what they do with the property after purchase, and what kinds of homes they buy. The following are common categories of home-buying companies:
- House flippers: House-flipping enterprises buy properties that need significant work before they can go on the market. They often buy homes at a deep discount, fix them up and sell them at a profit. If you own a distressed property in a good location and without major structural issues, it may be attractive to a flipper.
- Buy-and-hold investors: These investors purchase your home and hold onto it, often to rent out to tenants. Depending on your property, neighborhood and local market conditions, a buy-and-hold investor may wish to purchase your home for long-term tenant leases or short-term vacation rentals.
- iBuyers: iBuyers (short for “instant buyers”) are companies that use technology to make near-instant offers on homes. They usually charge service fees and operate in limited markets, buying homes that meet certain condition criteria.
- Cash home buyers: As the name implies, cash home buyers purchase homes for cash. They may either flip and sell your home or keep it as a rental property. Legitimate companies like Florida Cash Home Buyers focus on providing a fair offer and a smooth closing process.
How to Find a Reputable Property Investor
If you decide to use a property investor, you need to find a reputable company. Heed the following guidelines to help protect yourself from fraudulent investors.
- Research companies online. Professional investors should have a legitimate website with a business location, a phone number for inquiries and an “about us” section to introduce themselves. Check out their online reviews, and choose a company with generally favorable ones.
- Check for accreditation, Investors don’t require licensure like real estate agents, but the accreditation from the Better Business Bureau can help you find a legitimate cash buyer. FCHB is a BBB-accredited business with an A+ rating.
- Don’t pay upfront fees, Legitimate investors will not ask for payments before closing, and they should never require you to make a payment in cash, cryptocurrency or gift cards. At FCHB, all of our services are 100% free to our clients.
- Don’t succumb to pressure, Scammers often hope to trip you up by pressuring you to act fast. Be wary of these high-urgency tactics and take your time to vet the company. You’re the homeowner, and you should be the one setting the pace for the sales timeline.
How to Sell Your Home to an Investor
Now that you’ve weighed your options and chosen to sell through a cash home buyer, it’s time to discuss how the sales process works with a real estate investor. The following steps can help you find a legitimate property investor, like Florida Cash Home Buyers, that will offer you a fair price for your house.
- Research investors: The first step involves identifying and vetting potential property investors. After narrowing down your list, contact the companies to express your interest in selling your home. You can typically call, email or use an online form.
- Initial consultation: Real estate investors will arrange a meeting to discuss the details of your property and why you want to sell. At Florida Cash Home Buyers, our team of friendly House Helpers can take care of this in a 5-to-10-minute discovery phone call.
- Offer and negotiation: Investors will consider your home’s location, condition and fair market value to make an offer. We can often make an estimated offer shortly after the discovery call.
- Property evaluation: This phase involves making in-person property visits, which may include inspections, appraisals and repair estimates. While many investors do this before the formal offer, we offer packages both with and without inspection periods. The right one for you depends on whether your priority is to sell more quickly or receive a higher offer price.
- Due diligence: During this phase, property investors wrap up legal and financial loose ends prior to closing, such as conducting a title search, making sure your mortgage is satisfied and ensuring your HOA fees are paid. If you sell to Florida Cash Home Buyers, we will follow through on our unique agreement and timeline. This may involve conducting repairs, scheduling inspections and providing you with a cash advance.
- Closing and transfer: As part of closing, you and the investor sign documents, transfer property ownership and coordinate a funding date. With Florida Cash Home Buyers, you can typically receive your funds in one or two business days after closing.
Sell Your Home With Florida’s Trusted Cash Buyer
At Florida Cash Home Buyers, we know selling to an investor isn’t right for everyone and will truthfully tell you if we don’t think that a cash sale is the best option. Understanding the pros and cons of selling to an investor can help you make an informed decision. If you’ve decided an investor is right for you or you’d simply like to learn more about how the process works, we can help.
We pride ourselves on our transparency, honesty, fair cash offers and hassle-free service. Contact us for a no-obligation cash offer today.