- Los Angeles home owners have the choice to sell their home through the traditional process with an agent; or directly to an investor, also known as a direct buyer
- Traditional home selling through an agent can be time consuming and expensive to the seller due to repair requests, agent commissions, and other costly factors
- Alternatively, selling your home to a direct buyer is convenient and stress free, while not incurring the costs associated with a traditional selling process
In this 2023 real estate market, it’s a bit harder to predict when your Los Angeles home will sell. Because interest rates are higher for end buyers in Los Angeles, the number of qualified homebuyers at certain price levels has shrunk. In this situation, owners seriously interested in selling their Los Angeles should understand what’s involved (and their costs) in selling that California home through a traditional process and what alternative options exist to achieve the goal of selling their Los Angeles house.
What’s Involved in the Traditional Home Selling Process?
The traditional home selling process in Los Angeles involves the seller finding an agent to advise and coordinate the process of preparing the property, taking photos, marketing it on the MLS, and finding a financially qualified buyer. In the traditional process, the agent will take a look at the home and will ask the seller to repair and/or upgrade the interior and exterior in order to get the home ready for a showing or open house. The seller would spend money on repairs and time on cleaning. At the end of the process, the seller will pay real estate commissions, professional fees to prep the home, and closing costs. Then, the seller will receive what’s left as cash proceeds.
What Are the Benefits of Selling to a Direct Buyer?
If you don’t have the time, money, or patience to deal with the traditional home sales process, selling to an investor, also known as a direct buyer, may be your best option. If the idea of no stress and keeping more cash at closing at closing sounds appealing, you should read on as we explore how to sell your Los Angeles house directly to Fair Sale Homes, along with the associated benefits.
Benefit #1: No Marketing
Marketing is a costly endeavor in the home selling process when you are competing with today’s Instagram standards and social media trends. Agents typically hire professional digital photographers, videographers and drone experts, and professional stagers to level up the visual appeal of the home in order to get potential buyers interested. These steps attract buyers to your door by presenting your home in the latest style and best light.
For well-maintained or recently remodeled homes in desirable neighborhoods, the above marketing efforts are absolutely necessary in order to stand out and attract the right buyers. However, if the seller’s house isn’t in great condition and will take a lot of time of repair and clean-up to be ready for the camera, the above amount of marketing won’t necessarily pay off. In cases like this, sellers should consider saving time and effort on marketing by selling the Los Angeles house directly to professional buyers like those at Fair Sale Homes.
Benefit #2: No Prepping or Clean Up
In a traditional sales process, prep work on the interior may be as simple as adding a fresh coat of paint, but can also be as extensive and expensive as replacing outdated decor, appliances, and finishings such as flooring. Additionally, you’ll need to keep your house pristine and clutter free during the listing period so buyers can show up anytime for walk-through.
By making a direct sale to professional buyers like those at Fair Sale Homes, avoid the inconveniences of showings and sell your Los Angeles house without spending any money. The professional buyers at Fair Sale Homes believe sellers should spend $0 to sell their house.
Benefit #3: No Costly Repairs
In the traditional home sales process, a buyer will pay for a licensed home inspector to arrive at the home, perform a home inspection, and generate a report of potential problems that is returned to the buyer. Then, the buyer will ask you the seller to repair those items as a condition of buying your home. Below is a list of common items a buyer might ask a home seller to repair in order to close the sale of the house.
- Electrical systems: Outlets, light fixtures, electrical panels, and wiring
- Plumbing systems: Water heaters, pipes, faucets, and toilets
- HVAC systems: Heating, ventilation, and air conditioning systems
- Roof and attic: Leaks, proper ventilation, and insulation in the attic.
- Foundation: Cracks, movement, or signs of settling in the foundation of the home.
- Walls and ceilings: Cracks, water damage, and soundness
- Windows and doors: Proper sealing, locks, and glass integrity
- Exterior of the home: Signs of wear, damage, or defects on the exterior walls, and decking
- Appliances: Appliances, such as stoves, ovens, refrigerators, and dishwashers.
- Smoke and carbon monoxide detectors: Smoke alarms and carbon monoxide detectors are properly installed and in working condition.
Disclosure laws make you responsible for any issues with the property, even if discovered after the sale in some cases. As an alternative, a direct sale will allow you to sell your Los Angeles house without spending any money on costly repairs because Fair Sale Homes will take the burden of the repairs onto their experienced shoulders. We will not ask you to make any repairs or pay for any repairs ($0 out of your pocket). The professional buyers at Fair Sale Homes buy houses directly in as-is condition.
Benefit #4: No Professional Fees or Commissions
Real estate agents in California are typically compensated through a commission-based model, which is a percentage of the sale price of the property. The percentage is agreed upon by the you the seller and the agent and varies depending on the location and type of property being sold.
The standard commission rate in California is typically around 5-6% of the sale price. The commission is paid by the seller at the close of escrow and is usually split between the agent and their brokerage. In exchange for their commission, real estate agents provide a range of services to sellers to help them sell their property.
In addition to sellers paying real estate commissions, sellers also pay some closing costs and fees which refer to the expenses incurred during the sale of a property. These costs can vary and typically include a combination of fees that are charged by lenders, title companies, escrow companies, and other third-party service providers. Generally, the buyer and the seller are responsible for paying different closing costs and fees. Here are some examples of common seller closing costs and fees in California:
- Real estate commission: Typically, the largest cost for the seller is the commission paid to the real estate agents involved in the sale.
- Escrow fees: The escrow company charges a fee for holding the seller’s funds in a secure account until the sale is finalized. This fee is typically split between the buyer and the seller.
- Title insurance: The seller is required to purchase a title insurance policy that protects the buyer from any disputes regarding ownership of the property.
- Transfer taxes: California imposes a transfer tax on the sale of real estate. The tax is based on the sale price of the property and is typically split between the buyer and the seller.
- Home warranty: The seller may be required to purchase a home warranty to protect the buyer from any defects or issues with the property after the sale.
- Prorated property taxes and HOA fees: The seller is responsible for paying their portion of property taxes and HOA fees up until the sale date.
These costs and fees are subtracted from the sale price of the property, along with any outstanding mortgage balance and other liens, to determine the seller’s net proceeds.
If you’d like to skip paying the commissions and pay less in closing costs to sell your Los Angeles house, the best alternative is to make a direct sale to professional buyers at Fair Sale Homes to benefit from no hidden fees and no surprises that become hurdles to closing and receiving your money.
Benefit #5: No Waiting to Find a Qualified Buyer
If you’d prefer to avoid paying holding costs as days, weeks, and months pass, and your bills for the property continue to roll in, your solution is a direct sale with a guaranteed closing date to professional buyers like those at Fair Sale Homes to sell your Los Angeles house without spending any money. When dealing with a direct buyer like Fair Sale Homes, they buy houses as-is. Additionally, since direct buyers purchase houses with cash, you don’t have to worry about the waiting time that comes with bank financing. Depending on the circumstances, sellers can can complete the sale and walk away in a matter of days or weeks.
The professional buyers at Fair Sale Homes are waiting to help you if you want to sell your Los Angeles house without spending any money. Talk to one of the local seasoned professional buyers at Fair Sale Homes today and find out how we can help you solve your home selling problems.
Call Fair Sale Homes at (626) 863-7006 to schedule your appointment and receive a fair offer.