There are two main ways to sell your Philadelphia home. You have two options: either sell it directly to a local cash buyer or list it with a real estate agent and sell it on the open market. Both are feasible. The best option will depend on how quickly you must move, the condition of the house, and the amount of inconvenience you are prepared to put up with.
This guide explains both choices in simple words. You will discover what to do before you begin, how to accurately evaluate offers, and what actually transpires between the day you accept an offer and the day you get paid.
Option 1: Using an Agent to List
The majority of people sell through listings. An agent assists you in determining a price, lists the property on the MLS, arranges showings, and manages the correspondence with potential purchasers.
It can get you the best price, particularly if your house is modern and in a neighborhood where real estate moves swiftly. However, it’s typically not the quickest path, and there are expenses that people often overlook.
Preparing the house. Mortgage buyers anticipate a well-maintained house. Before the initial viewing, this frequently entails painting, making minor repairs, organizing closets, and occasionally making larger repairs.
Open homes and showings. You’ll have to leave the house anytime someone wants to see it and maintain it tidy.
Awaiting the loan from the buyer. The buyer still requires an appraisal and final loan clearance after you accept an offer. That typically takes 30 to 45 days, and you might have to start over if the appraisal is low or the loan doesn’t go through.
Requests for repairs following inspection. After the inspection, purchasers frequently return to request repairs or a reduced price. Inspections of older Philadelphia rowhomes frequently reveal electrical, plumbing, or roof problems.
Closing expenses and commission. Typically, agent commissions total between 5% and 6% of the sale price. In addition, sellers cover various closing expenses and their portion of the real estate transfer tax.
Option 2: Direct Cash Sales
You completely avoid the listing process when you sell to a local cash buyer. There are no open houses, no showings, and no waiting for a loan to be approved by a bank.
Typically, DI Solutions LLC operates as follows:
- You give the address and a few facts over the phone or complete a brief form.
- The house is once traversed by someone. Nothing needs to be fixed or cleaned beforehand.
- Within a day or two, you receive a written monetary offer.
- You choose the closing date if you accept. That might happen in as little as seven to fourteen days with a clear title.
You may learn more about the procedure step-by-step.
Price is the trade off. The offer will often be less than what a fully renovated home might fetch on the market because a cash buyer is taking on the repairs, the risk, and the time required to fix the house up. However, the gap is frequently less than people anticipate because there are no commissions, no repairs, and even no closing charges for you to pay.
When the house requires maintenance, you’ve inherited a property that you don’t want to maintain, you’re behind on payments, or you just need a set closing date, selling for cash makes the most sense.
Things to Collect Before Beginning
Putting a few things together early will save you a ton of time later, regardless of how you sell. This is a basic checklist:
- Everyone whose name appears on the deed must have a photo ID.
- A copy of your deed, or at the very least, the names on it
- The loan number and lender contact information from your most recent mortgage statement
- Information about any line of credit or home equity loan
- Recent water and property tax bills so you are aware of any past due amounts
- Documentation of significant upgrades or repairs, such as a new furnace or roof
- If you are selling a home that belonged to a deceased person, you will need to submit estate documents.
- If the home is occupied by tenants, lease agreements
In Pennsylvania, sellers are typically required to complete a property disclosure statement outlining any known issues with the house. Be truthful about it. It is not necessary to conceal problems when selling as-is.
It’s also a good idea to look for anything that can make shutting take longer. Old judgments, unpaid water bills, and unpaid taxes can all appear as liens on a home in Philadelphia. These are often deducted from the sale at closing, although it’s preferable to be aware of them beforehand. This is further explained in our guide on deed transfers, liens, and title issues.
Before you speak with anyone, check out our advice on how much your house is worth in Philadelphia.
How to Evaluate Offers Side by Side
Comparing bids solely on price is the largest error made by sellers. The amount of money you take home and your level of confidence that the sale will close are what really count.
When you have multiple offers, arrange them in a line and pose the following queries:
How much is the net amount? Subtract the agent commission, your portion of the transfer tax, closing costs, repair credits, and any necessary repairs from the offer price. Your actual number is that.
Is it funded or cash? A loan and an appraisal are prerequisites for a funded offer. Cash offers don’t. If it’s much more likely to close, a somewhat lesser cash offer would be the preferable option.
Which contingencies are covered? The buyer has a way out through inspection, appraisal, and finance contingencies. You have greater certainty when there are fewer contingencies.
When will they be able to close? The closing date is just as important as the price if you need to move quickly or have more time.
What is paid by whom? Find out who pays the transfer tax and closing charges. Put it in writing.
Are they able to describe their number? A competent buyer ought to be able to demonstrate how they arrived at their offer. Slow down if they are unable to.
Additionally, be wary of any buyer who demands payment in advance or who makes a high offer only to try to drop it just before closing. Additionally, a serious customer won’t do that.
What Takes Place Between “Yes” and Closing Day
Here’s what often occurs after accepting an offer.
1. You sign a sale agreement. The price, closing date, and any conditions are stated below. Ask questions about anything that is unclear after carefully reading it.
2. The file is opened by the title company. In Philadelphia, the closing is handled by a title business. To ensure that the title is clear and to locate any liens, unpaid taxes, or judgments that must be settled, they investigate public records.
3. Any problems with titles are resolved. The title business works to resolve any issues that may arise, such as an outdated water bill or a name problem on the deed. Your timeline is most frequently impacted by this step.
4. Financed sales are held up by the lender. This is when the appraisal and final loan approval take place if the buyer is acquiring a mortgage. This step is omitted when dealing with a cash buyer.
5. You organize your relocation. Decide when to move, arrange for the utilities to be turned off or transferred, and maintain your homeowners insurance coverage until the transaction is complete.
6. The last day. At the title business, you sign the final documents. You receive the remaining funds, typically via wire transfer or cheque, once your mortgage and any liens are settled by the sale.
Which Choice Is Best for You?
Listing with an agent could provide the highest price if your house is updated, you have time to wait, and you don’t mind showings. Selling directly for cash is frequently the simpler option if the home needs repairs, you’re dealing with an estate, or you just want a straightforward sale on your own schedule.
Fortunately, you don’t need to speculate. Receiving a cash offer is free of charge, and you are never required to accept it. Select the option that best suits your needs by comparing it to what you would probably get from a listing.
Request a free cash offer or give DI Solutions LLC a call at (267) 575-0354 to find out what your home might sell for as-is. Even if you choose to list, we will be pleased to respond to your inquiries.