Published December 2, 2024
Three Ways to Sell
There are three ways you can sell your property:
- Cash buyer (70 cents on a dollar)
- Sell to an off-market identified buyer (garage sale negotiations)
- List and sell on market (auction with the highest potential upside)
There are pros and cons to each of them:
| Selling Option | Pros | Cons |
|---|---|---|
| Cash Buyer | - Quick sale with minimal hassle | - Lower offer (around 70% of market value) |
| Sell to an Off-Market Identified Buyer | - Better price than a cash buyer; less hassle than listing on the market | - Likely a bit lower than full market price; informal "garage sale" style negotiations |
| List and Sell on Market | - Highest sale price; potential for competitive bidding or "auction effect" | - More time-consuming, more work maintaining the property in a condition for showings |
Here are descriptions of each selling option:
- Cash Buyer: Selling to a cash buyer is the quickest and simplest option. These buyers typically offer around 70% of the property’s market value in exchange for a fast, no-fuss transaction. This approach eliminates the need for staging, marketing, or dealing with traditional financing contingencies. While the offer will likely be lower than other methods, the speed and ease of the process make it a great choice for sellers needing immediate cash or wanting to avoid complications.
- Sell to an Off-Market Identified Buyer: This option strikes a balance between price and convenience. Off-market buyers, often investors or individuals in your network, are typically willing to pay more than a cash buyer but less than the property’s full market value. This method eliminates the hassle of listing and preparing the home for the open market. However, negotiations in these scenarios may feel less formal and structured, resembling a “garage sale” style of bargaining, which might require flexibility on both sides.
- List and Sell on Market: Listing your property on the open market offers the greatest potential financial upside. This method involves preparing and marketing the home to a wide audience, attracting competitive offers from interested buyers. With the potential for bidding wars or the "auction effect," you may achieve a price above market value. However, this approach requires the most effort, including staging, open houses, and navigating a more complex transaction process. It's ideal for sellers prioritizing maximum returns over convenience.
