Traditional Sale, Auction Or Direct To Investor?

If it sounds too good to be true, it probably is.

For the best price you want maximum exposure to buyers. Real estate has a retail market, which consists of most traditional sales. It also has a wholesale market. Investors and some Auction sites are part of the wholesale market. Wholesale means they buy it at a price that allows a profit. This can be anywhere from ten to sixty percent below the retail value. Most of the ads offering "we buy ugly houses" or "sell fast in any condition" are investors looking for discount opportunities.

There are scenarios where selling wholesale makes sense. For example:

  • You have equity and need to sell very fast before imminent foreclosure. You're trading your equity to save your credit.
  • The property is in very bad unlivable condition and you absolutely don't have the money make it livable before the sale.
  • Anytime money now is more important than getting full price.

If you're not in a distressed situation there is no reason to take the discount that wholesale buyers require.

You will profit more from the sale of your home by preparing it for the sale, pricing it well and getting it in front of the most qualified buyers. This is the process of the traditional sale and the focus of the guide.