The average total cost of relocating an employee reaches as high as $90,017, encompassing full relocation services and home-sale assistance. And for those with a family in tow, the financials aren’t the only factor to consider.

Ideally, you want your employer to cover or subsidize your moving costs. But don’t expect your employer to offer you a fantastic relocation package right off the bat. You’ve got to prove that you’re worth the investment and negotiate terms to support your unique situation.

With help from a career coach and relocation expert, we’ll teach you everything you need to know about relocation packages, including:

• Common components of a relocation package
• How to find out if your employer offers relocation packages
• Tips for negotiating the best relocation package possible

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Common components of a relocation package

Relocation packages vary from employer to employer and even job offer to job offer. Here are some benefits that your relocation package may include:

Coverage of moving-related expenses

Most relocation packages offer coverage for some or all of the costs associated with the move. Moving-related expenses might include:

• Packing supplies
• Professional moving services
• Travel expenses, including flights, rental cars, etc.
• Transportation of belongings, such as a POD or U-Haul service

Transition assistance

Moving to a new city or state is no easy feat, which is why many relocation packages include resources and benefits to help new employees and their families settle in. Here are some examples of transition assistance a company may provide:

• Temporary accommodation
• Flexible start date
• Expenses paid visit prior to moving
• Cultural and language training (if you relocate internationally)
• Travel expenses for return visits home (if you relocate before your family)
• Job search assistance for your partner

Support with real estate transactions

If you’re a homeowner, your employer may offer to reimburse you for home sale-related expenses. An employer may subsidize or cover:

• Real estate agent fees: Around 6% of your home sale price
• Inspections: Varies based on location, with a national average of around $328 
• Transfer fees: A tax covering the transfer of your deed, which varies by state and can reach up to 4.5% of your property value
• Closing costs: Between 6% to 10% of home sale price

Some relocation packages offer a relocation mortgage, a loan that allows your employer to make financial contributions to your mortgage in various ways. For instance, they may contribute to closing costs or interest rate deductions through buydowns and below-market interest rates.

Some employers may offer a bridge loan, which helps to ease the financial burden if your former home is still on the market after you’ve departed.

If you’re a renter and need to take the plunge before your lease is up, your employer may help in covering the costs associated with breaking your lease.

Find out if your employer offers relocation packages

While most larger companies offer relocation packages, many are selective in their offerings or reserve packages for senior employees. Here’s how to gauge if your prospective employer has or would offer relocation assistance:

• Read their Glassdoor reviews.
• Network with current employees on LinkedIn.
• Consider the uniqueness of your qualifications and living situation.
• Ask your employer’s HR department if they have a relocation policy or benefits to offer.
• Connect with a recently relocated employee or colleague to learn about their relocation experience.
• Reach out to a recruiter in your industry who may be able to provide professional insight.

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Tips for negotiating your relocation package

Carlota Zimmerman, a seasoned career coach and relocation expert, explains the importance of employees considering the reality of uprooting before taking the plunge:

“Let’s face it, relocating for a job is a huge deal for the whole family: whether that’s “just” one woman and her dog or two married partners and their seven cats. So it’s important that people embarking upon this step take it seriously.”

If the family (and fur babies) approve of the move, then it’s time to sharpen those negotiation skills and advocate for yourself. Whether you’re requesting relocation assistance or negotiating to upgrade the offered package, the following advice will help you handle the process as efficiently as possible.

Crunch the numbers and back up your request

“Speak to a few moving companies and educate yourself as to how much they would charge you to pack up your items and move for you, whether it’s across the street or across the country,” Zimmerman advises.

Once you’ve done the math to figure out exactly what relocating would cost, you can back up your compensation request with real numbers. Draft an excel spreadsheet and punch your calculations in there for rock-solid accounting. As Zimmerman explains, “the more informed you are, the better. That way, when your new company comes forward with a figure, you’ll have a good handle on how realistic it is.”

Advocate for yourself and your value

If there’s ever a time for self-advocacy, the time is now. If a company is considering offering you a relocation package, that means they are interested in you — yes, you! So, step up to the plate, practice your power poses, and advocate for what you deserve.

Zimmerman shares that “this is not the time to bootstrap yourself. You can be cheap and cheat yourself (if you must) on other factors. But especially if you’re moving your family, being too cheap — for example, forcing the kids to pack only a single box of toys — is a great way to set the family up for long-term therapy and disappointments.”

Think outside of the box with your relocation requests

Brainstorm what type of assistance would be mutually beneficial for you, your family, and your employer. Ask yourself which elements of the relocation process will prove to be the most challenging, and how your employer can help ease those steps.

Not all components of a relocation package are strictly monetary assistance. For example, you may request support from a professional to vet quality child care or education. Full-service relocation companies may assign a consultant to serve as a liaison between the family and new local schools. After learning about the family’s academic objectives or desires for their new school, the consultant would provide research, suggestions, and support.

Make it a family affair

If your family dynamic allows, “take the time to have every family member contribute a (sensible) budget, and then go to your new employer with a comprehensive plan,” suggests Zimmerman.

Encourage the adult members of your family to come up with a list of any challenges and expenses they anticipate may damper the move. Involving family members up front helps everyone get on the same page before the transition even begins.

Transition with a turnkey service

At an average of $25 billion a year, the relocation industry is a force to be reckoned with. Companies like BGRS, Xonex, and Aires exist solely to help employees relocate.

If you’re a homeowner with a family, pets, and many pieces of the puzzle to account for, it may be advantageous to hire one of these relocation companies to coordinate your move. This way, you’ll have a team of professionals to help you every step of the way. From preparing, listing, and selling your home, to packing, moving, and adjusting to your new life — a relocation service can be your one-stop shop for all your transitional needs.

Better than We Buy Houses

On HomeLight’s Simple Sale platform, we compare sites like “We Buy Houses” to other house-buying companies in your market and present you with the best offer. Simply answer a few questions about your home, and you can receive a no-obligation all-cash offer within a week.

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Plan, prepare, and pave your path towards success

From negotiating your offer to packing your prized possessions, the process of relocating can seem like a dizzying whirlwind of logistics and legwork. But the potential perks your employer may offer can offset those burdens and ease the transition.

Preparation is the key to success. Do the research, reflect on your needs, review the numbers, and ask the experts. If you’re a homeowner, enlisting the expertise of a local real estate agent can help shed some light on those expenses — both in your old and new neighborhood.

“Once you have a plan, and a budget in mind, more than likely you’ll see that this move is an exciting new adventure for you, your career, and the people you love,” Zimmerman shares.

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But don’t fret. “Nine times out of 10 the lien can be paid off through the sale,” says Richie Helali, Mortgage Sales Lead at HomeLight Home Loans. “This way the seller doesn’t need to come up with [the debt] out-of-pocket earlier.” In other words, the proceeds from the sale can be used to cover the unpaid bills.

In this guide, we’ll fill you in on everything you need to know about selling a house with a lien and the steps to take to get to the closing table.

Stressed About Selling a House With a Lien?

Sometimes the easiest way to sell a house with a lien is to get a cash offer from an investor who is familiar with the process of resolving the title issue and can walk you through it. Take the next step by providing some information through our Simple Sale platform and we’ll help show you some potential options.

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Can you sell a house with a lien?

Homeowners can sell properties with liens. For a buyer to take possession of the property, the seller will need to clear title and satisfy all outstanding liens.

Stephen Donaldson, a real estate attorney and founder of The Donaldson Law Firm in New York explains that creditors record liens in the county clerk’s office in order to protect their interest. “The lien puts the world on notice of the creditor’s interest in the property.”

“If an owner tries to sell their house, a title search will identify any liens recorded against the property. In order for the sale to occur, the title company ensures that any liens are satisfied at closing so the buyer can take title free and clear of any liens.”

The following payment options are worth considering to clear your title:

• Pay the debt upfront
• Negotiate the debt for a lesser amount you can afford
• Dispute debt errors with the assistance of an attorney
• Work the payoff into the sale proceeds

Types of property liens

Property liens can be voluntary or involuntary. Mortgage liens, for instance, are voluntary; the borrower agrees to have a lien recorded against their property as collateral for the loan. Other liens are involuntary; they’re recorded by a creditor or a plaintiff who won a judgment for an unpaid debt.

Mortgage lien

The most common type of property lien is a mortgage. There are typically two levels or priorities of mortgage liens: primary and secondary.

Primary lien: The first mortgage is the primary lien. “A mortgage lender always wants to make sure they have that first priority lien,” says Donaldson. “If a homeowner defaults, the lender wants to ensure they get as much money back as possible first without any regard to the second lien holder.”

Secondary lien: If a homeowner already took out a mortgage to be recorded against the property to buy the house, they already have some home equity and may wish to borrow against that equity from the same or a different lender, Donaldson explains, in the form of a second mortgage.

“In order to get that home equity line of credit, that lender would have a lien in the second position or a second priority lien,” according to Donaldson.

Tax lien

The government has the power to record tax liens on properties when the homeowners owe back taxes. To remove the lien, the property owner will need to satisfy the debt. Homeowners can also enlist the help of a real estate attorney to either negotiate or dispute the lien.

Tax liens often take priority over all other liens, including primary mortgage liens. This is part of the rationale behind most mortgage lenders including property taxes in mortgage payment schedules, and paying taxes on behalf of the borrower through an escrow account – it helps mitigate risk and protect the lenders’ interest in the property.

The federal government also has the power to file IRS liens against property owners who fail to pay back income taxes on money they’ve earned. When IRS liens remain unpaid, the federal government can foreclose on a property to collect the debt. It’s also important to note that state and local governments may also file tax liens for nonpayment of state or local levies and taxes.

Judgment lien

Judgment liens, or judicial liens, are recorded against real estate when a judge issues a judgment against a property owner who loses a lawsuit and court-ordered damages remain unpaid. Selling a house with a judgment lien requires court approval.

Child support and alimony liens

If a property owner fails to pay court-ordered alimony or child support, a lien can be placed against the property. The judge may allow the owner to sell the home, however, court approval can take a long time, reports Helali.

HOA lien

Homeowner associations can record liens for unpaid dues and outstanding fines. HOAs may initiate foreclosure even when mortgage payments are current if the state and the association’s covenants, conditions, and restrictions allow it.

Mechanics lien

A mechanics lien, also known as a construction lien, can be recorded against a property for unpaid construction work, beginning 90 days after payment is due. Like other liens, mechanics liens can cloud a title making it difficult to sell a property. Liens that fall under the broader category of mechanics liens include:

• Materialman’s or supplier’s liens: for contractors that supply materials for construction or home improvement projects
• Designer liens: recorded by engineers, architects, and other designers when services remain unpaid

Whether you’re a retiree looking to downsize from a large suburban home or a landlord ready to unload a River Walk rental condo, finding real estate cash buyers in San Antonio will be the best way to fast-track the sale and move you closer to your goals. With the help of a local real estate agent and some seasoned San Antonio real estate investors, we created this guide to give you a head-start to finding a San Antonio cash buyer for your home.

Need to Sell Your House Fast in San Antonio?

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Disclaimer: Information in this blog post is meant to be used for educational purposes only, not as a substitute for professional tax or legal advice. If you need help navigating the intricacies of selling your home in San Antonio or elsewhere, HomeLight always encourages you to reach out to your own independent advisor.

The cash-buying landscape in San Antonio

The San Antonio real estate market draws investors with its consistent housing stock, variety of industries creating a broad employment base, and steady influx of residents. Here’s what to know about the cash-buying real estate landscape in San Antonio.

Affordable housing sparks investor activity in San Antonio

Darren Dickout, a San Antonio real estate investor and owner of Big Buck Home Buyers, shares that the overall state of the cash-buying market in San Antonio is strong. “The San Antonio market is relatively affordable compared to the other major metro areas in Texas, which brings investors from all over,” he says. “Several areas are undergoing major revitalization, particularly close to the downtown area. Flippers are buying up historical houses, making them beautiful and modern, and then reselling — or are keeping them as short-term rentals.”

A mix of out-of-state buyers flock to Alamo City

An influx of residents keeps the San Antonio housing market uber-competitive. Homebuyers are seeking out San Antonio as their next place to settle down because of the cultural diversity, job opportunities, and reasonable cost of living. People are finding home here, whether they’re coming from other parts of Texas or other states altogether.

iBuyers see opportunity in San Antonio

San Antonio has seen significant activity from iBuyers — tech-enabled companies that use algorithmic pricing to make instant cash offers on properties and provide an opportunity to sell your house online. One report notes that iBuyers target San Antonio for its homogenous housing stock, and sets of properties that have a uniform look or characteristics are generally easier to value and gauge margins on.

Ara Fesperman, a top San Antonio real estate agent who works on Missy Stagers’ team, confirms the city is seeing a higher percentage of cash buyers, including both iBuyers and people moving from out of state. “I’d say probably one out of every 10 buyers is paying with cash, in my experience as a listing agent. We might see anywhere from five to 20 offers on any given property, and 25% of them are beat out by a cash buyer.”

Step away from the Glade plug-in air fresheners, scented candles, and cans of Febreze. It’s time to learn how to deodorize a house by attacking the root of the cause. Masking the problem with nausea-inducing fruity fragrances will only have homebuyers reaching for the Pepto-Bismol.

“You have to get rid of the problem, whether it’s the cats, litter boxes, dogs, or smoking,” says top-selling Cincinnati real estate agent Jon Bowling. “If you’re not willing to do that, I might not take your listing because it’s so difficult to move a home with bad odors.”

Step one: Talk to an expert!

Selling your house soon? Connect with a top agent near you to get an expert opinion on how much your house will sell for, what to fix before listing, and the latest local housing market trends.

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For every foul odor, there’s a different remedy, so let’s go through how to get rid of bad smells in your house, including:

• A dirty or messy house
• Walls drenched in cigarette smoke
• Pet odors seeped into carpets and furniture
• Damp, mildewy bathrooms or closed-in spaces

Then, we’ll guide you through the types of smells you should add back into a home that appeal to the widest pool of buyers.

General tips and tricks to keep your house smelling fresh

Even if you heed the CDC’s warnings of the last 50 years and aren’t a chain smoker, and you’ve never had a pet in your life, it’s possible that your house has an odor issue. In any case, your home could always smell fresher for the sake of home showings.

To start, roll up your sleeves, grab your cleaning supplies, and give your house a deep cleaning.

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Disclaimer: Information in this blog post is meant to be used for educational purposes only, not as a substitute for professional tax or legal advice. If you need help navigating the intricacies of selling your home in the state of New Jersey or elsewhere, HomeLight always encourages you to reach out to your own independent advisor.

New Jersey’s cash-for-homes market

New Jersey’s appealing lifestyle, prime East Coast location, and relatively affordable homes in an eclectic mix of communities draw cash buyers to the state.

Cash buyers eye affordable South Jersey

With their proximity to New York City, higher-priced North New Jersey cities like Hoboken and Tenafly have long attracted homeowners who commute to the Big Apple. But since the pandemic, many former commuters now work from home. Seeking more space and affordability, they’re flocking to the burbs of western and southern New Jersey.

“South Jersey is considered part of metropolitan Philadelphia and has always had relatively lower home values than northern New Jersey,” explains Timothy Belko, a top-selling South New Jersey real estate agent.

“But with more people working from home, we’ve had an increase in home buyers and investors coming down from North Jersey. They can get a larger house for the same price, or sometimes even a lower price.”

Belko adds that investors looking for rental properties are snatching up duplexes in southern cities such as Pittman and Cherry Hill. “In this market, they’re going to get a better return on their investment down here than they would up north.”

Jersey ‘burbs and cities attract Big Apple cash buyers

New Jersey residents aren’t the only ones looking for more house for their money. Across the Hudson River in New York City, first-time buyers and others who are priced out of the Big Apple’s uber-expensive housing market are heading for the Garden State. So are Manhattanites who are no longer chained to office desks.

Different markets provide NJ house flipping opportunities

Lou Stojanovski, Chief Operating Officer of local house-buying company We Buy New Jersey Real Estate, says investors in the area don’t necessarily target specific areas or types of homes. His company buys houses throughout the state but tailors its strategies to four different market types categorized as A, B, C and D.

Here’s an overview of each one:

A: These houses are in higher-end communities like Somerset. In an A market neighborhood, investors might look for a single-story ranch home and add a second floor to increase the value. We Buy New Jersey Real Estate also looks for A market short-sales and land where they can build new homes.

B: This mid-range market includes houses in cookie-cutter neighborhoods with similar comps. B market houses are common in areas like North Brunswick, East Brunswick and Old Bridge Township. They’re usually in good shape and can be flipped quickly.

C: Because homes in C market neighborhoods vary widely in style and condition, they’re trickier to price and less desirable for flippers than A and B market properties. “You might see eight different types of homes on the same street, so the comps are very inconsistent,” explains Stojanovski.

D: Found in communities like Irving and Camden, these homes tend to be in very poor condition. Some investors may shy away from D market properties because they need extensive work and comps are low.

This guide is designed to provide valuable knowledge about cash offers, enlisting a top-performing real estate agent, and how you can avoid common mistakes when trying to sell a house fast.

Sell Your Washington House Fast With an All-Cash Offer

Get an all-cash, no-obligation offer on your Washington home through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses.

Step 1: Request Offer

Why you might need to sell your Washington house fast

There are numerous life circumstances that might necessitate a swift home sale in Washington:

• Financial pressure: A rapid house sale can provide relief from burdensome medical bills, looming bankruptcy, or mounting credit card debt.
• Navigating a divorce: Selling a shared home in the midst of a divorce can hasten the separation process, enabling both parties to start anew.
• New job prospect: A quick home sale can facilitate a smoother career transition, especially if your new opportunity lies beyond the Evergreen State.
• Unexpected job loss: In the face of sudden unemployment, selling your home promptly might help avert the threat of foreclosure.
• Inherited property: Selling an inherited house swiftly can alleviate the stress of continuous maintenance and taxes, particularly if you already have a primary residence in Washington.
• Don’t want to be a landlord: If you’re dealing with challenging tenants or you’re simply exhausted from managing a rental property, selling the house could be your next wise step.
• Health or family-related downsizing: You may need to downsize or relocate to stay close to family or access specialized health services.
• Significant damage with limited funds for repairs: If your house in Washington requires extensive repairs but you lack the necessary funds, selling your home as-is could be a feasible solution.

Even though these situations can be demanding, they can be handled efficiently with the right knowledge and options.

Option 1: Request a cash offer for your Washington home

Navigating the traditional home-selling landscape can often be a lengthy endeavor, but a convenient, modern alternative is gaining popularity: requesting a cash offer for your house.

Cutting-edge online platforms such as HomeLight’s Simple Sale provide an efficient, secure way for Washington homeowners to connect with cash buyers, speeding up the process and enabling a fast sale of your house.

Simple Sale allows you to skip home repairs and gives you the flexibility to choose your move-out date. You can receive a no-obligation cash offer in as little as a week, and close the sale in as few as 10 days. To get started, answer a few questions about your Washington home and your selling timeline. It’s that streamlined and straightforward!

The process of a cash offer in Washington

In a cash sale, the buyer is prepared with immediate funds to buy your house, circumventing the necessity for a mortgage and the protracted process it entails.

The cash buyer will evaluate your Washington home’s condition and market value, following which they extend an offer. Once accepted, the deal can reach closure swiftly, eliminating the waiting time for mortgage approvals or traditional home sale inspections.

Here’s a snapshot of the uncomplicated three-step Simple Sale process:

Who else buys houses for cash in Washington?

In Washington, a multitude of house-buying companies and investor groups are prepared to pay cash for your home. These companies offer a viable route to quickly convert your property into ready funds.

Here are some active companies that purchase homes for cash in Washington:

• We Buy Houses Washington (statewide)
• Seattle House Buyers (Seattle area)
• I Will Buy House (Seattle area)
• John Buys Houses (Seattle area)
• Kind House Buyers (Tacoma area)
• The Easy Home Buyer (Spokane area)

While you could undertake an internet search to find companies offering cash for homes, ensuring each company’s credibility requires research and vetting. Alternatively, you could simplify this process by leveraging HomeLight’s Simple Sale platform, which provides access to the most expansive network of reliable cash buyers across the U.S., ensuring a safe and fast transaction for your home.

This guide will shed light on the advantages of requesting a cash offer, the process of engaging a top-tier real estate agent, and how to sidestep potential pitfalls in the speedy home sale process. So let’s unpack the best strategies for selling your house fast in South Carolina.

Sell Your South Carolina House Fast With an All-Cash Offer

Get an all-cash, no-obligation offer on your South Carolina home through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses.

Step 1: Request Offer

Why you might need to sell your South Carolina house fast

There can be several pressing reasons why you, as a South Carolina homeowner, might need to sell your house fast.

• Relocation for work: You’ve landed a new job in another city or state, and you need to relocate quickly.
• Financial hardship: Unexpected circumstances have put a strain on your finances, requiring you to access the equity in your home.
• Divorce or separation: A change in your relationship status might necessitate a quick sale of your shared property.
• Inherited property: You’ve inherited a property that you can’t maintain or simply don’t need, and you wish to sell it swiftly.
• Downsizing: You’re looking to move to a smaller, more manageable property and want to sell your current home promptly.
• Escaping high maintenance costs: Your home may have ongoing repair issues or high maintenance costs that you wish to avoid.

As these scenarios demonstrate, needing a fast home sale is more common than you might think. One potential solution that can meet your urgency without compromising on fairness is considering a no-obligation all-cash offer for your South Carolina home.

Option 1: Request a cash offer for your South Carolina home

The conventional route of selling your home can prove lengthy, but if you’re facing an urgent need and the clock is ticking, there’s an alternative available: receiving a cash offer for your South Carolina house.

Modern online platforms, such as HomeLight’s Simple Sale, connect South Carolina homeowners to cash buyers, simplifying the process and making a rapid house sale achievable.

With Simple Sale, you get to select your move-out date, and you can finalize the sale in as few as 10 days. To get started, all you need to do is answer a few questions about your South Carolina property and desired selling timeline. You’ll receive a no-obligation all-cash offer in as little as one week. It truly is that straightforward!

“Cash buyers often purchase properties in their current condition, which means sellers don’t need to invest time or money into repairs or renovations,” says Rupesh Patel, a top real estate agent serving Upstate South Carolina who also specializes in investment properties. “This can be advantageous for sellers who have a property in need of significant repairs or updates.” Agents like Patel can also help a homeowner sell a house “as is” on the open market.

The process of a cash offer in South Carolina

In a cash offer situation, the buyer possesses the required funds to buy your South Carolina home, bypassing the need for a mortgage and the time-consuming process that comes with it. They evaluate your home’s condition and market worth, then make an offer. With acceptance, the deal can close promptly, sidestepping the typical waits for mortgage approvals or inspections.

Here’s a look at the three simple steps in the Simple Sale process:

Who else buys houses for cash in South Carolina?

In South Carolina, numerous established house-buying companies and investor groups are prepared to pay cash for your home. Here are a few examples:

• House Hub Real Estate Solutions (Statewide)
• Charleston House Buyers (Charleston area)
• Charleston SC House Buyers (Charleston area)
• Cash Home Buyers (Columbia area)
• Midlands Home Buyers (Columbia area)
• Columbia Cash Home Buyers (Columbia area)
• Nice Guys Buying Houses (Greenville area)
• SC Home Offer LLC (Greenville area)
• Greenville Home Buyers (Greenville area)

You can also take the initiative to search the internet for other cash-for-home companies. Keep in mind that it’s crucial to thoroughly research and vet each company to ensure you’re confident in your choice. Alternatively, you can use HomeLight’s Simple Sale platform, which connects you to the largest network of reliable cash buyers in the U.S., providing you with peace of mind and a fast selling process.

In this guide, we dive into the best options for a fast home sale in Nevada. From understanding cash offers to leveraging the expertise of a top real estate agent, we aim to empower you with the information you need to navigate your unique journey.

Sell Your Nevada House Fast With an All-Cash Offer

Get an all-cash, no-obligation offer on your Nevada home through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses.

Step 1: Request Offer

Why you might need to sell your Nevada house fast

Selling your Nevada home quickly may not always be the initial plan, but certain circumstances can necessitate a rapid sale. Let’s take a look at some reasons why you might find yourself in this situation:

• Relocating for work: Your job might be taking you out of state, requiring a swift home sale.
• Financial hardship: You might need to liquidate your asset quickly to ease financial stress.
• Divorce or separation: The division of property can sometimes require a fast home sale.
• Retirement: You may be seeking to adjust your living situation in your golden years.
• Inherited property: Managing or maintaining an inherited home may not be feasible, calling for a quick sale.
• Upgrading or downsizing: Changing family dynamics can necessitate the need for a bigger home or a smaller one.
• Health issues: Health-related circumstances can sometimes necessitate a move to a more manageable property or different locale.
• Unexpected property damage: Sometimes, dealing with extensive damage to your home isn’t worth the hassle or cost.

Now, let’s delve into one of the best options to expedite your sale: getting a no-obligation all-cash offer for your Nevada house. This option can provide a quick and straightforward solution to your home-selling needs.

Option 1: Request a cash offer for your Nevada home

For those seeking a swift and simple solution, requesting a cash offer for your Nevada home presents a convenient alternative to the traditional home-selling route.

Cutting-edge platforms like HomeLight’s Simple Sale can connect Nevada homeowners with preapproved cash buyers, eliminating the waiting game that often accompanies selling a house.

With Simple Sale, you hold the power to select your move-out date, and potentially close the sale in just ten days. By answering a few questions about your Nevada home and desired selling timeline, you can receive a no-obligation all-cash offer in as little as a week.

The process of a cash offer in Nevada

The process of a cash offer in Nevada is straightforward. With a cash sale, the buyer has the funds ready, making mortgage applications a non-issue. After evaluating your home’s condition and factoring in Nevada’s real estate market, the cash buyer formulates an offer. Once you accept, the deal moves to close rapidly, sidestepping any delays typically associated with mortgage approvals or inspections.

Here’s a look at the simplicity of the process with HomeLight’s Simple Sale:

Who else buys houses for cash in Nevada?

In the active Nevada housing market, several reliable house-buying companies and investment groups are ready to pay cash for your home. These entities can help create a path to a quick and near-effortless home sale.

• We Buy Houses Nevada (statewide)
• Cash for Vegas Homes (Las Vegas area)
• Priority Home Buyers (Las Vegas area)
• Gr8housebuyers (Las Vegas area)
• We Buy Any Vegas House (Las Vegas area)
• Reno Area Home Buyers (Reno area)
• Northern Nevada Home Buyers (Reno area)
• Sierra Housing Solutions (Reno, Sparks, Carson City)

While you can explore the internet for additional cash-for-homes companies, keep in mind that any service should be thoroughly researched and vetted to ensure you feel comfortable with your choice. You can be confident with HomeLight’s Simple Sale platform, which seamlessly connects you to the largest network of trusted cash buyers in the U.S.

In this guide, we’ll discuss two of the most common options for selling your house fast: requesting a cash offer from a house-buying company or hiring a top New Hampshire real estate agent. We’ll also provide tips on how to avoid common pitfalls and ensure a smooth and successful sale.

Need to Sell Your House Fast in New Hampshire?

Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers throughout New Hampshire.

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Why you might need to sell your New Hampshire house fast

Here are some of the most common reasons why homeowners in New Hampshire might need to sell their house fast:

• Financial hardship: If you are facing a financial hardship, such as a job loss, medical bills, or bankruptcy, selling your house fast can help you get out of debt and get back on your feet.
• Life changes: If you are going through a major life change, such as a divorce or retirement, selling your house fast can help you move on to the next chapter of your life.
• Moving for a new job: If you have accepted a new job in another city, you may need to sell your house quickly in order to relocate.
• Inherited property: If you have inherited a property that you don’t need or want, selling it fast can help you avoid the burden of ongoing maintenance and holding costs.
• Don’t want to be a landlord: If you have troublesome tenants or you’re tired of managing a rental property, selling the house may be your best move.
• Downsizing due to health issues or death in the family: You may need to downsize or relocate to live closer to family and healthcare services.
• Significant damage but no money for repairs: If you lack the funds for repairs, selling your house as-is in New Hampshire could be a practical solution.
• Pre-foreclosure: If you are facing foreclosure, selling your house fast can help you avoid damaging your credit score and financial reputation.

These circumstances, although challenging, can be managed effectively. The key is understanding your options. Getting a no-obligation all-cash offer for your home could be the lifeline you need when looking to sell your house fast in New Hampshire.

Option 1: Request a cash offer for your New Hampshire home

The traditional home-selling process can be time-consuming and stressful, but there’s an alternative that’s gaining popularity: getting a cash offer for your house.

Modern real estate platforms such as HomeLight’s Simple Sale can help you find a cash offer for your New Hampshire home quickly and easily, without having to worry about repairs, showings, or negotiations.

The Simple Sale platform is designed to accommodate your schedule. You can select your move-out date and potentially close the sale in as few as 10 days. By answering a few questions about your New Hampshire property and your selling timeline, you can receive a no-obligation all-cash offer in as little as a week.

The process of a cash offer in New Hampshire

A cash offer is when a buyer has the funds upfront to purchase your home, eliminating the need for a mortgage and the lengthy process that accompanies it.

In New Hampshire, the cash buyer will typically assess your home’s condition and market value, and then make an offer. Once accepted, you can close the deal quickly since there are no mortgage approvals or inspections to wait for.

Here are the three easy steps in the Simple Sale process:

Who else buys houses for cash in New Hampshire?

In addition to the convenient option of HomeLight’s Simple Sale platform, there are a number of well-established house-buying companies and investor groups in New Hampshire ready to pay cash for your home. If you’re considering this route, it’s worth familiarizing yourself with some of the players in the local market:

• Impact House Buyers LLC (Statewide)
• New England Home Buyers (Statewide)
• We Buy Ugly Houses New Hampshire (Statewide)
• IPS Cash (Statewide)
• NH Home Buyers (Manchester area)
• Dreamwest home buyers (Manchester area)
• Joe Homebuyer New Hampshire (Sullivan area)
• ASAP Cash Home Buyers (Nashua area)

Home sellers looking for a cash offer can also search the internet for additional cash-for-home companies. It’s important to research and vet any company you’re considering working with to make sure they are reputable and trustworthy. Alternatively, you can simplify the process by using HomeLight’s Simple Sale platform, which connects you to the largest network of trusted cash buyers in the U.S.

“Most of the time, sellers think their house is in worse condition than it actually is because they’re living in it and seeing it every day,” says Eli Joseph, a top real estate agent in Hartford County, Connecticut. “They just need assurance that the house is going to sell and that someone is going to buy it in that condition.”

Sell Your House Just the Way it Is

House needs some work? No problem. Skip repairs, staging, and the hassle of open houses. Get an all-cash offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer within a week and close in as little as 10 days. Available to sellers across the U.S.

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Let’s take a bird’s-eye view of selling a fixer-upper or an old house, then drill down into what attracts buyers for these types of properties.

Learn more about your buyer pool

It’s natural to wonder how a home that needs TLC can compete with turnkey properties, especially when the median existing-home sales price has soared in the last few years.

Maybe you haven’t maintained your home regularly or you’ve inherited a house and want to sell it. Regardless, your house doesn’t have to be perfect. It just has to show the potential for buyers to make money, build equity, or obtain the lifestyle they want within their budget.

Possible buyer #1: The real estate investor

What’s a real estate investor?

Real estate investors can be individual house flippers, small or large-scale rental landlords, or even house-buying companies such as We Buy Houses.

You also may have heard of tech-enabled cash buyers such as Opendoor, Offerpad, and HomeLight (our Simple Sale platform connects sellers with competitive cash offers) that use technology to value homes and make near-instant offers.

How do they operate?

These buyers usually pay with all cash and prefer to buy homes off-market. Many will purchase homes as is, meaning the seller isn’t expected to do any work to improve the home’s current condition.

For this type of buyer, a purchase is generally all about how the numbers shake out since they don’t plan to live in the property. Would the costs of buying and rehabbing the property allow the buyer to resell it at a decent profit? Or, alternatively, would the cash flow cover their expenses should they aim to rent the property?

What do they look for in a home?

Daniel Close of Louisville, Kentucky, a real estate investor for 15 years, says his main calculation is a home’s value after the cost of repairs. In Louisville’s starter-home range of about $150,000 to $200,000, he aims for 80% after-repair value, or ARV. In general, investors offer about 70% of a property’s ARV for a house they plan to flip.

Close also considers how the home might appeal to future buyers. “I look at the neighborhood a lot. Is it trending in the right direction or the wrong direction? What’s this neighborhood going to look like in 5 years or 10 years?” he says. “Room layout is a big one for me. Is the flow appropriate? Do I have to knock down walls, or redo a bathroom? … Do I need to move the kitchen or move the bathroom? That’s a lot of money.”

Possible buyer #2: The bargain hunter

Who are the bargain hunters?

This type of buyer would love to live in a specific location but hasn’t been able to land their dream home, either because they can’t afford the average home prices there or because someone else — like a cash buyer — has snapped it up first. This buyer may be a first-timer who is unable to tap into existing equity to buy a new home or a DIYer who isn’t afraid of a house that needs some TLC.

How do they operate?

While most buyers would prefer a move-in ready home over one that requires renovations, deal-hunters, by contrast, go against the grain. They are likely to ask their real estate agent to share listings of a lower price point for the area that may require some work.

What do they look for in a home?

A bargain hunter is looking for the potential to create their dream home on a limited budget. A house that needs cosmetic updates and some elbow grease to be move-in ready is OK with a deal-hunter, so long as it has decent bones and a location they love.

Close to 80% of homes that went on the market last year exceeded the average buyer’s budget. That means more buyers are having to sacrifice their expectations for a home’s condition to make homeownership a reality.

“They just need the vision of what can be done and how it can be done,” says Joseph.

As with any introduction, first impressions matter. The average online attention span is about eight seconds, so your listing really needs to grab a potential buyer’s attention with great photos and an enticing description. Despite this challenge, selling your house online or using online tools in the process lets sellers understand their home’s worth, reach potential buyers, find top-performing agents, and even sell their homes quickly for a competitive cash offer.

In this article, we’ll cover three home sale options:

• Selling with a top real estate agent
• Selling “For Sale By Owner” (FSBO)
• Selling to a cash buyer
• Developing a marketing strategy to sell your house online

We’ll give you some real estate marketing tips on how to prepare your house for online sale. And for even more great pointers, we caught up with Kurtis Becker, top realtor with Coldwell Banker in Kona, Hawaii.

Sell your house online with a top real estate agent

Most home sellers — 86%, in fact — partner with a real estate agent to help with their home sale. And although finding the best agent to sell your house might sound like a daunting task, there are online resources that have made finding a great agent easier than in your parents’ day.

HomeLight’s agent matching platform, for instance, matches sellers with potential agents who have a track record of success in their market. Sellers are empowered with information including how quickly agents have sold homes in the past and how much they sell homes for compared to area norms.

Sell Your House Online With a Top Agent

Find real estate agents that sell homes faster and for more money. With more and more buyers using online tools to search for their next home, a top agent can help you use the latest tech-enabled tools to create a winning selling strategy.

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Agents keep up-to-date on the latest tech-enhanced trends in real estate to help their clients market their homes. Online listings need to grab prospective buyers’ attention, so they have to stand out. Top agents can arrange professional photography, drone flyovers, and 3D tours to give your house listing an edge over similar properties.

They’ll even create paid marketing campaigns. According to Becker, “most realtors will just put it on MLS and wait for the buyer to come to them.” However, Becker has found that including “online social media marketing, paid YouTube and Google ads, and specialized keywords” draw more attention to his listings.

Pros

• You get professional expertise from your top agent, including strategies that work best for buyers house hunting online.
• An agent who specializes in your area can provide insight on prospective buyers, neighborhood dynamics, and local real estate trends and highlight these in your online description.
• Top agents have access to the best inspectors and other professionals, so you’ll have peace of mind that your pre-sale inspection will be professional and thorough.

Cons

• Selling your house the traditional way by working with a realtor takes time. As of early 2023, the average timeline was 125 days from listing to closing.
• Your agent’s commission will come out of your sale profits.

Sell your house online as “For Sale By Owner”

The internet is a great resource for all kinds of information — including buying and selling real estate. Having easy access to online home selling resources has empowered and enabled homeowners to an unprecedented degree.

Because of this, some sellers opt to try their hand at selling their house online and forgo an agent, attempting “For Sale By Owner,” or ‘FSBO,’ for short. There’s a certain freedom that comes with being in charge of your entire sales process.

However, it’s not exactly a popular home sale method, and often for good reason. In fact, only 10% of recent home sales were FSBO. This is partially due to the time and effort it requires. FSBO is a big project, so only take this on if you’re truly ready for a challenge.

Pros

• You can still list on the MLS for great visibility.
• You have total control over the sale.
• You don’t have to pay a real estate agent’s commission, which averages around 6%, typically split evenly between the listing agent and buyer’s agent. However, as the seller you’ll still probably have to cover the buyer’s agent’s commission.

Cons

• Marketing your home is all on you. You’ll have to create eye-catching content and spread it across the Internet without a real estate agent’s help and expertise.
• FSBO takes a lot of time. Real estate agents earn their commissions by maintaining online listings, coordinating showings, and communicating with potential buyers. If you sell your house on your own, you’ll have to set aside plenty of time to dedicate to the sales process.
• You could lose money on your sale. On average, FSBO homes sold for approximately $225,000 in 2022 — much lower than the average price of $345,000 for agent-involved sales.
• You could put yourself at legal risk. A lot of documents in the selling process, such as a purchase agreement, are legally binding. Having an experienced, professional agent  helps you avoid legal landmines. Consider working with a real estate attorney if you go this route.

Sell your house quickly to a cash buyer

The internet hasn’t only opened up the FSBO world. It also provides you with the ability to sell your house for cash directly to an investment buyer. This is a relatively new home sale method that accounts for a small portion of real estate transactions. 2022, saw direct buyers accounting for about 1.3% of real estate sales in the United States.

Selling your house in this manner is a more streamlined process than a traditional sale, and you can often close in weeks rather than months. Traditional real estate sales involve finding an agent, staging your home, and vacating for showings and open houses. Investment buyers are looking for fast transactions and tend to pay cash for your home, sometimes sight unseen.

For people looking to cash out quickly, the Internet has enabled new, simple options. For instance, HomeLight’s Simple Sale platform helps you get a competitive cash offer quickly. It just takes a moment to answer a few simple questions about your home.

Quick, Request an Offer for Your House Online!

Use HomeLight’s Simple Sale platform to sell when you’re ready without the hassle of paying for repairs, prepping for listing, or dealing with showings. It’s easy to request an offer online and get started today.

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Sometimes it can make a lot of sense to move quickly rather than going through the time and effort to find the highest possible bidder. In fact, according to a recent survey, 77% of sellers would consider taking 5% to 10% less for a faster and easier selling experience.

Pros

• It’s convenient since you don’t have to prepare your home for sale or showings. Some investment buyers will purchase your home without even visiting the property or sending an inspector.
• In some cases, you can sell your home entirely online.
• Direct sales can happen quickly, so it’s an intriguing option if you want to sell your house fast.
• Many direct sales happen without a real estate agent, avoiding certain costs.

Cons

• Direct buyers want a good deal. In exchange for a fast sale, you might have to settle for a lower price than you’d get from a traditional sale.
• There’s not much room for negotiation.

Develop a marketing strategy to sell your house online

If you decide to list your home FSBO, you’ll want to create a marketing strategy. Smart marketing includes keeping up with trends and creating a killer listing with stunning photos and a strong, detailed description of the house.

One of the biggest trends you’ll find is that online sales have led to a new and sometimes contactless method of real estate. In fact, in Becker’s experience, some buyers purchase homes without actually seeing the property in person. “They’re putting in offers online” he says, “but there’s a large percentage that aren’t even coming over” to see a house with their own eyes.

That means it’s more important than ever to smartly market your house listing. And an eye-catching listing starts with great photography. Realtors spend about 30% more time getting impressive photos than they spend on other marketing efforts. Your listing pictures need to excite and entice prospective buyers to learn more about the house. So spruce up your indoor and outdoor living spaces and hire a great photographer!

Once you have fantastic photos, you’ll need to write a captivating and creative listing description. Tell the house’s story and help your buyer picture themselves in your home. In Becker’s words, “you have to look at it through the buyer’s eyes and not your own.”

Selling your house online is a great and easy way to go!

Gone are the days of homebuyers driving through neighborhoods looking for open houses. Instead, they’re searching for — and finding — their next house online. And thanks to myriad online tools, it’s easier than ever before to sell your house online. Regardless of which sales method you choose, the Internet can help you sell more easily than you ever thought imaginable.

Header Image Source: (Pickawood / Unsplash)

Luke Rentz is a top agent on the Rentz Team in Tulsa, Oklahoma, which sells homes 72% quicker than average agents in the market. He recommends that sellers contact an experienced agent in their area before making any repairs. “A local agent will be much more familiar with popular trends and different things that are going in to get you the most bang for your buck,” he says.

Knowing what to fix — and what not to fix when selling a home — can be tricky. That’s why we compiled a do-not-fix list and threw in some advice to help you determine which fixes are worthwhile — and which are a waste of time, money, and effort.

A Top Agent Can Guide Your Home Prep

Save money and time by partnering with a top agent who will know what repairs you need to help sell your house, and what repairs you can skip. It takes just two minutes to match clients with the best agents in your market.

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How to decide what not to fix when selling a house

Before getting to the list, let’s look at three initial steps to help determine how to approach repairs as you make plans to list your home.

Step 1: Consult with a top local agent before you fix anything

Ask a top local agent what — if anything —should be fixed or upgraded. They’ll know where you can make money on necessary repairs and upgrades and where to save money by leaving some projects undone.

Aim for something between “as is” and turnkey. You want to do just enough to attract buyers, but you don’t want to pour a lot of unnecessary cash into repairs and upgrades that won’t help your home sell for more, or could inadvertently discount its value.

Rentz points out that bad repairs, or updates that don’t fit the current market, can cost you double, “You spent that money, but someone else is pre-discounting the property to fix that repair or update you did.”

Because they know the neighborhood, as well as what the market is doing, real estate agents can provide sound insight into what work has a good return on investment and what work could be just a waste of time. A great place to start is Homelight’s annual Top Agent Insights, a survey of agent insights into the current market.

“The first thing I say to my sellers is, ‘Please don’t do anything to your house until I see it.’ That’s because a lot of sellers overspend on fixing and upgrading things that don’t make a difference to the home’s value,” says Carmen Bean, a top-selling agent in San Antonio, Texas, who works with over 72% more single-family homes than the average agent in her market.

In many cases, Bean will advise sellers to wait for the home inspection report and the buyer’s requests. Then you’ll know where you need to spend money. That way, you don’t “waste” money on cosmetic changes that may be needed to fix issues discovered by an inspection.

So why would you want to work with these companies? Maybe you’ve just accepted a job offer in Salt Lake City and are looking for a quick, low-hassle way to sell your Fort Collins home during the winter. Or perhaps you’ve inherited your late parents’ Denver bungalow and want to sell it “as-is.”

Need to Sell Your House in Colorado Fast?

Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers throughout Colorado.

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Whatever the case, a We Buy Houses for Cash company could be the best solution if you’re looking for a quick and easy sale. However, before you request a cash offer, it’s important to understand how much a Colorado house-buying company might offer for your home and how the process works. It’s also wise to explore your options before you make a commitment.

With millions of homes sold each year, a modest portion of sellers — about 7% in 2021 and 10% in 2022 — choose to list “For Sale By Owner” (or FSBO — pronounced fizz-bow). Of those, 50% already knew the buyer of the home, according to data from the National Association of Realtors (NAR).

In this guide to selling FSBO in California, we’ll cover what can be the most difficult aspects of selling by owner in The Golden State, including the steps that might be harder than you think. We’ll also provide a comprehensive overview of the full process to prep, market, and close on your home without the assistance of a real estate agent.

Unsure About Selling FSBO in California?

If you don’t have the time or expertise to list your home FSBO, partner with a trusted, top agent in your California market. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.

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Note: Once you’ve seen what’s required, you can roll up your sleeves and get started with your FSBO sale. Or — in the event you’d prefer to work with a real estate agent — HomeLight would be happy to introduce you to highly-rated professionals in your California market who can help you command top dollar and provide a low-stress selling experience.

How does selling by owner (FSBO) work in California?

Disclaimer: This blog post is intended for educational purposes only. HomeLight recommends that you look into the real estate regulations for your area and consult a trusted advisor.

FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, the seller assumes the responsibilities that would normally fall to their agent, such as pricing the home, marketing it to potential buyers, arranging showings, and negotiating the deal.

In an agent-assisted sale, the seller typically pays a commission amounting to around 6% of the sale price, which is then most often split 50/50 with the buyer’s agent. That 6% is deducted from the seller’s proceeds at closing. By selling FSBO, a seller can eliminate the cost of the listing agent’s commission (so around 3%), though they may still need to offer a buyer’s agent commission.

Buyers’ agents will expect compensation for the work they do to bring a buyer to a sale, such as arranging showings and helping to tee up and qualify the buyer. Plus, when a seller isn’t working with an agent, the buyer’s agent may end up carrying more of the weight to get the deal to the finish line, which may result in them prioritizing working with a listing agent who will share the workload vs. a FSBO listing.

Next: Consult our guide on who pays closing costs when selling a house by owner for more details.

Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. California is the most heavily regulated state in the country, and real estate transactions for properties located in California tend to be more complex compared to some other states. The California Association of Realtors (CAR) lists no fewer than 10 disclosure forms required for nearly all residential real estate transactions, with dozens of additional stipulations and advisories for buyers and sellers to know about. (We’ll address disclosures later in this post.)

For these reasons, most people who sell by owner in California will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly.

These companies target homeowners in urgent or time-sensitive situations, such as an unexpected move to a care facility or a deceased family member. You don’t have time to make upgrades and repairs, and you may need the cash to move your family member. But no one wants to be taken advantage of, conned, or ripped off.

We Buy Houses companies are flippers who purchase properties “as is” for cash and renovate them, generating a profit at resale. They are legitimate businesses, but there are some definite pros and cons to selling to them. Here’s what you should know before calling the number on that billboard.

Sell Your Home Without Repairs, Staging, or Showings

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What are the types of cash house buyers?

We Buy Houses operations are cash buyers or house buying companies that purchase homes directly from homeowners. There are three primary types of cash buyers: iBuyers, buy-and-hold investors, and fix-and-flip investors.

Maybe you own a bungalow on an oceanside street that needs some TLC or are looking to unload your cozy fixer-upper in Sacramento. Or perhaps a new job offer in Reno or the sudden inheritance of a Los Angeles home means you’re giving these companies a second look.

If you need to sell your California home quickly, a We Buy Houses for Cash company could be the best solution. We dug into the details of We Buy Houses for Cash companies across California and rounded up some of the best options available. We also provide guidance on how California cash-for-homes companies function, how much they might offer for your home, and how you can weigh your options, so you’re happy with your sale.

Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. Links and mentions of Arizona’s “we buy houses” companies should not be considered an endorsement.

Need to Sell Your House in California Fast?

Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers throughout California.

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Working with house-buying companies in California

We Buy Houses companies in California typically promise quick, all-cash offers and ultra-fast closings, often in as few as seven days. They tend to target distressed properties in need of repairs and work with sellers who need to move ASAP.

Here’s what you can expect from the process:

1. You request an offer and provide the company some information about your home. Some companies may make a preliminary offer at this stage, but it’s usually subject to change once they’ve inspected your property.
2. The company completes a walkthrough of your property, usually within 24 to 48 hours.
3. The company makes a firm offer (usually within 24 hours, sometimes on-site after the walkthrough), which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
4. If you accept the offer, you’ll both sign a contract, and the closing process will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
5. Closing and getting paid is quick, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

With such impressive sales figures, some Florida sellers may be curious about how to sell a house by owner in Florida — a decision that could help them save on agent commissions.

While the method can work, it does come with some risks, including selling your house for less than it’s worth.

In this guide on how to sell a house by owner in Florida, we’ll cover what can be the most difficult aspects of selling by owner, including the steps that might be harder than you think. We’ll also provide a comprehensive overview on the full process to prep, market, and close on your home without the assistance of a real estate agent.

Unsure About Selling FSBO in Florida?

Connect with a top-rated real estate agent near you for a consultation and price estimate for your home.

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Note: Once you’ve seen what’s required, you can roll up your sleeves and get started with your FSBO sale in Florida. Or — in the event you’d prefer to work with a real estate agent — HomeLight would be happy to introduce you to highly-rated professionals who can help you command top dollar and provide a low-stress selling experience.

Fast Facts About Selling a House in Florida

Quick FSBO overview

FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, the seller assumes the responsibilities that would normally fall to their agent such as pricing the home, arranging showings, and negotiating the deal.

In an agent-assisted sale, the seller typically pays a commission amounting to around 6% of the sale price, which is then split 50/50 with the buyer’s agent. That 6% is deducted from the seller’s proceeds at closing. By selling FSBO, a seller can eliminate the cost of the listing agent commission (so around 3%), though they may still need to offer a buyer’s agent commission.

Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller’s disclosures and purchase contract.

From cash offers to hiring top real estate agents, we dive into the options that can expedite the selling process.

Our guide provides unique Illinois-specific insights, shedding light on what you need to know to successfully sell your home quickly. Make the process smoother, faster, and more profitable with our expert advice.

Need to Sell Your House Fast in Illinois?

Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers in Illinois.

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Why you might need to sell your Illinois house fast

Here are a few common reasons why you might need to sell a house fast in Illinois:

• Relocating for a job: You’ve landed a new job in another state and need to sell your home swiftly to facilitate the move.
• Facing foreclosure: A speedy home sale can help you avoid foreclosure, possibly preserving your credit score.
• Inheriting property: You’ve inherited a home you don’t plan to keep, and you prefer a quick resolution.
• Divorce settlement: The division of assets during a divorce might necessitate a fast home sale.
• Upsizing or downsizing: Unexpected changes in your family size or lifestyle can lead to an urgent need to sell.
• Financial difficulties: Selling your house might be a solution to ease immediate financial pressures.

So, how can you sell your Illinois home quickly under these circumstances? One viable option is to consider a no-obligation all-cash offer for your home.

Option 1: Request a cash offer for your Illinois home

The path to selling your house doesn’t have to be arduous. For homeowners in Illinois seeking speed and convenience, getting a cash offer for your house has emerged as an appealing alternative. This option lets you skip the traditional, often lengthy home-selling process. Platforms like HomeLight’s Simple Sale pave the way, connecting Prairie State homeowners with cash buyers, and enabling a fast and seamless sale.

Through Simple Sale, you have the flexibility to pick your move-out date and finalize the sale in as few as 10 days. Simply answer a few questions about your Illinois home and your selling timeline, and you can secure a no-obligation all-cash offer in as little as a week.

The process of a cash offer in Illinois

Navigating a cash sale in Illinois can be a smoother ride than you might think. In such transactions, the buyer possesses the funds upfront, bypassing the mortgage and its associated delay.

After evaluating your home’s condition and market value, and considering the specifics of the Illinois real estate market, the cash buyer presents an offer. Upon your acceptance, the process swiftly moves forward as there are no mortgage approvals or inspections to slow things down.

Many cash-for-home services provide easy online tools to get started. For example, here are the three straightforward steps involved in the Simple Sale process:

Who else buys houses for cash in Illinois?

Numerous established house-buying companies and investor groups are ready to make cash offers for homes in Illinois. Here are some in-state companies that can provide such services:

• We Buy Houses Illinois (statewide)
• Heartland Funding Inc. (statewide)
• We Buy Ugly Houses Illinois (statewide)
• Sell My House Fast Chicagoland (Chicagoland area)
• I Buy IL (Chicagoland area)
• Kendall Partners Ltd (Chicagoland area)
• Windy City Solutions (Chicagoland area)
• Diamond Equity Investments (Chicagoland area)

Learn more about Illinois We Buy Houses For Cash Companies at this link.

While you can certainly spend time online seeking additional cash-for-home companies, it’s important to thoroughly research and vet these options to feel confident in your decision. Alternatively, you could opt for HomeLight’s Simple Sale platform, which connects you to the largest network of trusted cash buyers in the U.S., saving you time and effort.

We’ll explore various options to expedite your home-selling process, including cash offers and the benefits of partnering with a top real estate agent. We’ve also compiled expert tips to help you attract potential buyers and secure a fast, favorable deal.

Sell Your Georgia House Fast With an All-Cash Offer

Get an all-cash, no-obligation offer on your Georgia home through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses.

Step 1: Request Offer

Why you might need to sell your Georgia house fast

Selling a home in Georgia can be a race against the clock for a multitude of reasons. Whether it’s a change in personal circumstances or a strategic move, the need for a quick sale is often paramount. Here are a few reasons why you might find yourself needing to sell your Georgia home fast:

• Relocating for a job: If you’ve landed a new job in a different city or state, you may need to sell your home quickly to ensure a smooth transition.
• Facing financial hardship: If you’re struggling with finances, selling your home can provide the much-needed capital to stabilize your situation.
• Divorce or separation: Following a divorce or separation, you may need to sell your house fast to split assets and move forward.
• Upsizing or downsizing: Your current home may no longer meet your needs. Whether you’re growing your family or looking for a smaller, manageable space, a quick sale can expedite this transition.
• Inherited property: If you’ve inherited a property you don’t wish to maintain, selling quickly can resolve this while potentially providing financial gain.
• Avoiding foreclosure: Selling your home can be a viable route to avoid foreclosure if you’re behind on your mortgage payments.

Whatever your reason may be, knowing your options is key to achieving a successful and rapid home sale. One effective strategy that many Georgia homeowners find appealing is receiving a no-obligation, all-cash offer for their home. Let’s dive into this option.

Option 1: Request a cash offer for your Georgia home

Selling your house in Georgia can be a demanding process when time is not on your side. However, a rapidly growing alternative could help streamline this — opting for a cash offer for your house. Cutting-edge platforms such as HomeLight’s Simple Sale are designed to connect Georgia homeowners with a network of pre-approved, cash buyers, helping to expedite the selling process and providing a swift home sale.

The Simple Sale platform is designed to accommodate your schedule. You can select your move-out date and potentially close the sale in as few as 10 days. By answering a few questions about your Georgia property and your selling timeline, you can receive a no-obligation all-cash offer in as little as a week. Selling your Peach State home quickly has never been easier!

The process of a cash offer in Georgia

In a cash offer scenario in Georgia, the buyer possesses the necessary funds to purchase your home outright, doing away with the lengthy mortgage process. Following an evaluation of your home’s condition and market value within the context of Georgia’s housing market, the cash buyer presents an offer. Upon your acceptance, the deal can swiftly move to closing, unhindered by mortgage approvals or inspections.

Below, we’ve broken down the three straightforward steps involved in the Simple Sale process:

Who else buys houses for cash in Georgia?

In addition to the convenient option of HomeLight’s Simple Sale platform, there are a number of well-established house-buying companies and investor groups in Georgia ready to pay cash for your home. If you’re considering this route, it’s worth familiarizing yourself with some of the key players in the local market:

• Cash For Houses (Statewide)
• We Buy Ugly Houses Georgia (Statewide)
• Patriot Home Buyers (Atlanta area)
• Click House Buyers, Inc (Atlanta area)
• Better House Buyers (Atlanta area)
• Breyer Home Buyers (Atlanta area)
• Myers House Buyers (Augusta area)
• Spanish Moss Home Buyers (Savannah area)

You could spend time searching the internet for additional cash-for-home companies in Georgia, but be prepared to research and vet each one to ensure you feel confident in your choice. Alternatively, you could simplify the process by using HomeLight’s Simple Sale platform. Simple Sale connects you to the largest network of trusted cash buyers across the U.S., saving you time while providing the peace of mind that comes with working with verified buyers.

According to a National Association of Realtors report, 86% of buyers said their agent was a useful source of information when navigating the homebuying process.  When you choose well, your real estate agent will be your guide as you find your perfect home and make it to the closing table. They will walk you through everything you need to know and provide resources you can’t find anywhere else.

Over the last few years, agents were necessary to submit quick offers and help buyers win bidding wars. Moving into 2023, sellers are lagging behind the trends and expecting to get a premium price without doing much to their home. The days of shrewd negotiating are coming back. You need a buyer’s agent with the skills and experience to negotiate repairs and updates as well as price.

Choosing an agent who can fit the bill can be daunting, so with the help of a few veteran real estate professionals and some extensive research on our part, we created a handy 17-step guide for picking your agent, getting you that much closer to homeownership.

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What does a buyer’s agent do?

A buyer’s agent acts as an advocate for the buyer throughout the homebuying process. Their duties include (but aren’t limited to):

• Understanding what you’re looking for in a home
• Matching your objectives with how much you can spend
• Leveraging their experience and connections to identify appropriate properties
• Scheduling home showings
• Walking through homes with you and gauging your interest
• Lending emotional support during the process
• Writing an offer and handling negotiations
• Overseeing the next steps once an offer is accepted — helping with financing approval, keeping track of timelines, explaining the inspection report
• Attending the closing and ensuring it goes smoothly

Steps 1-5: Put together a list of potential agents

1. Think about the communication style you prefer

The first step to choosing an agent is to decide what communication style works best for you. This includes how the agent actually contacts you as well as how they speak and relate to you.

Warren Barnes, a Fort Wayne, Indiana agent who works with over 76% more single-family homes than other agents in his area, says that buyer/agent compatibility is important, but not necessarily the primary goal. Above all, Barnes says, “you want to have someone who is ultimately looking out for your best interests. And then secondarily, I think it’s good to work with someone that you can have fun with and build a relationship with along the way.”

Some questions to ask yourself include:

• What communication style are you looking for?
• Do you prefer to text, talk on the phone, or email?
• Do you want someone who can immediately get back to you on correspondence, or are you more flexible?
• Do you need super-personalized attention, or do you prefer for an agent to gauge your lifestyle and preferences and then take the reins accordingly?
• Do you prefer a direct, no-nonsense approach, or do you need things a little sugar-coated?

2. Leverage technology

While old-fashioned methods of picking a real estate agent like referrals and for-sale signs are valuable in your search, the ever-evolving internet offers a wealth of immediate resources. In fact, 96% of buyers in 2022 used online tools to facilitate their home search.

Barnes says that when it’s time to search for an agent, Google and agent review sites provide reliable and relevant information.

You can (and should) also check out their social media accounts to see the types of homes they’re helping buyers to find. Their tone on social media can also be an indicator of whether or not you think you’ll get along. Are they fun and playful? Serious and sophisticated? Wry and sarcastic?

There are tools available that can do all the meticulous grunt work for you, like combing through sales records, identifying top agents with proven track records who work with buyers like you, and reading reviews. One service with a built-in algorithm that produces customized results for buyers is HomeLight’s free agent-matching tool.

Many agents are utilizing technology themselves and offering online services to make your life a little easier, offering online bookings, virtual tours, electronic paperwork/signings, and even 3D, 360-degree views inside homes. In the next few years, more technology such as drone footage, artificial intelligence, and virtual reality may become more popular as well. If having an agent that leverages technology is important to you, make sure you’re asking about how they’ll use technology to work for you.

Learn more: Get the Latest News on Real Estate Technology

3. Get referrals from friends and family

Trusted referrals from your personal network — be they friends or family — are a powerful tool for finding a real estate agent. When faced with a seemingly endless number of options, having someone point you in the direction of an agent they had a positive, successful experience with is invaluable.

Besides providing great service throughout the homebuying process, pay attention to the agents who went above and beyond and made a lasting impression. According to the NAR, 89% of buyers would use their agent again or recommend them to others, so if you’ve had friends or family who recently worked with an agent, chances are they’ll give you a recommendation which is a great place to start.

It also pays to be careful with referrals, though. Your friends and family have different financial circumstances, may want to live in different neighborhoods, and may have different priorities when it comes to buying a house. An agent who was perfect for your sister or childhood best friend might not be a great fit for you.

Tip: Speaking of friends and family, if any of yours happen to be a real estate agent and offer their services, put them through the same vetting process as you would anyone else. No special treatment!

4. Think about what you’re looking for in a home

Different agents specialize in different types of properties, so Barnes says, a piece of due diligence for a buyer or seller would be to “ensure that the agent you’re looking to work with has performed transactions similar to the type of property that you’re looking to buy or sell.”

Once you have this knowledge, you can find an agent who is better tailored to your needs and has worked with similar clients. After all, you don’t want to waste your time looking at agents who only work far outside your price range or with homes you don’t want to explore.

5. Do on-the-ground research

When it comes to finding a winning real estate agent, it might be helpful to think like a journalist or a detective. A little creative investigation can go a long way. One way you can do this is by driving around the area where you’re most interested in buying.

“Look for yard signs in the location that you’re looking to buy. If there are a lot of yard signs for a particular brokerage or a particular agent, that can be a good sign that they might be the best person to work with,” points out Barnes.

These are the agents who already know these neighborhoods well. That alone gives them a leg up, and if they also align with your needs, then you’ve got a more solid candidate.

Steps 6-11: The vetting process

6. Do background research

At this point in the process, you should have a good shortlist of agents based on referrals, on-the-ground research, and online exploration that fits your criteria. Now you can do some digging on those particular agents, looking at their online profiles on sites like HomeLight, their Google business page, or Yelp.

Cynthia Kauffman, a top agent in Ocala, Florida, says to look for what the reviews say about an agent’s “people skills,” such as their communication and work style, as that will give you a good idea if they match what you’re looking for.

“Before you even [interview] someone, the reviews are key,” Kauffman says. “You want someone that is kind, patient, truthful, has a strong work ethic. You can tell all of that in the reviews.”

On top of that, dig deeper into each agent’s credentials, first confirming they are licensed in your state by checking your state’s real estate commission. Arello is another useful database to search all the licenses associated with an agent’s name and location, but it doesn’t include all states.

You can look further into any disciplinary actions on the state real estate commission, board, or department websites, as well. The Better Business Bureau is a good backup resource to check for violations or complaints.

These extra measures can help you make sure you’re working with an honest and ethical agent who truly has your best interests at heart.

7. Identify relevant certifications and specialties

Just as any good expert in any industry would seek to further their education and stay on top of changes or advancements in their field, many real estate agents pursue additional certifications to strengthen their skillset.

The National Association of Realtors offers several certification programs focused on various real estate specialties, from representing buyers to land consultants, commercial investments, eco-friendly real estate, and more.

Some agents specialize in military relocation, historic homes, and seniors. These expanded skills can make a difference for clients in special or irregular circumstances. If you are one of them, finding an agent certified in one of these particular areas could be a huge bonus.

See related story: What Is a Seniors Real Estate Specialist (SRES) Agent?

8. Interview agents

Interviewing your potential agent is your first step in establishing a relationship with them, says Kim Davis, a top real estate agent in Brockton, Massachusetts, who works with 71% more single-family homes than the average agent in her area. So it’s an essential step in finding your perfect match. Barnes recommends scheduling interviews with two or three agents that made your shortlist.

The most important questions to ask when interviewing real estate agents are primarily about their work history and experience, strategies, and references.

This is also a chance to make sure their communication style fits your needs. If you feel uncomfortable or get a bad vibe, it might not be the right fit for you. Homebuying can be an emotional and complicated process, so make sure the agents are able to answer your questions in a way you understand.

Barnes says it often comes down to a gut feeling, “which isn’t qualifiable, but if [you] feel like [you’re] getting along, they’re competent, and can answer any questions you may have,” you’re heading in the right direction.

Other things to look out for, according to Barnes: Can the agent proactively answer questions, and do they have a process for helping the client?

See related story: How to Interview a Realtor in a Brief 15-Minute Phone Call

9. Rule out the red flags

Just as important as knowing what you do want in an agent is knowing what you don’t want in an agent. Davis warns to be wary of aggressiveness in agents.

“I feel that the good agents have patience on their side, so any agent that’s looking to push a property — I think that’s a huge red flag,” she says. “There’s a fine line between educating and advising, and being pushy and demanding. So I would be cautious of an agent who is trying to push, push, push, especially for a specific property or if there was some kind of incentive for that agent.”

Look out for other warning signs, like agents speaking vaguely about their experience or any signs of dishonesty, however subtle. When you find the right agent, you’ll typically get a good gut feeling. The same can be true if the agent isn’t right for you. If your gut says “no,” it’s ok to walk away.

Certain red flags don’t necessarily mean the agent is a bad agent. They may just not be a good fit for you. But keep in mind that agents who are also Realtors®, meaning they are members of the National Association of Realtors, are bound by a strict Code of Ethics that binds them to higher standards of professionalism and integrity. If you sense they are acting unethically, being dishonest, intentionally vague, or don’t have your best interests at heart, it’s time to move on to the next agent candidate.

See related story: 12 Clear Signs of a Bad Real Estate Agent

10. Ask agents for references

If you still need more references, or if you don’t have any by the interview stage, this is the time to ask. Ideally, references provided will be buyers with similar circumstances as yours so you can get a firm grasp on what your agent can offer you, specifically.

11. Consider compatibility

The interview and any other early conversations with your agent are the best time to gauge whether you click with this person who you’ll be spending a substantial amount of time and trusting one of your major life milestones with.

“I think the biggest thing is developing that relationship through the interview. You can tell if you’re going to connect with someone. You can tell if you think it’s going to be difficult to work with them based on their personalities and statistics,” says Davis.

Steps 12-17: Select the perfect agent to help you navigate a challenging market

12. Evaluate skill

At this point in the selection process, you have all the information you need to review to make a final decision. From what you now know, consider the major factors when picking the winner:

• Who best knows the local market?
• Who has the most experience with buyers like you?
• Who has the best reviews?
• Who saves buyers the most money?

“Statistics speak for themselves,” says Davis. Take into account key performance indicators like the number of closings per year, the average number of days their properties stay on the market, the average price of homes bought and sold, and so on.

13. Think about conflicts of interest

An important quality to have in a real estate agent is that they are client-service driven, meaning they work to produce the best results for their client in every way. There are a couple of situations that demonstrate a major conflict of interest, which buyers should avoid.

The most obvious one is if they’re working as a dual agent. While this is somewhat unusual, it’s legal in most states for an agent to represent both the buyer and the seller if they choose.

If the agent is coaching both teams, it seems unlikely that either would get the attention or advocacy they deserve, leading to sacrificing the best price or property they could get if the agent was solely focused on just one client in the transaction.

Another conflict would be if an agent is trying to steer you in a different direction than you’re comfortable with or outside the parameters you’ve thoughtfully set. Some examples are urging you to look at homes outside of your price range, or advising you away from a co-op because they’re more difficult to close on.

See related story: Can a Realtor Represent Both the Seller and Buyer?

14. Make sure the agent is solution oriented

The buying process isn’t always as easy as finding the perfect home, securing financing, and signing the papers. There are a lot of moving parts and roadblocks along the way, so working with a solution-oriented agent can give you a leg up as you vie for the perfect house.

A good example of this is even though the market is slowing down a bit, affordability is still a real issue for many would-be buyers. Barnes says some buyers are struggling to secure financing for certain loans given the condition of the home, but he’s able to offer a product that can work around some of the roadblocks.

Other ways agents can help with affordability, he says, is coming up with other possible solutions such as buying down the interest rate, negotiating seller concessions, and encouraging saving more for the down payment.

15. Gauge connections

A mark of an experienced agent is how well connected they are to their industry and the resources they have in their network.

“Agents know everyone — we know contractors, we know appraisers, we know banks, we know anyone you would need to know as a homeowner. You need a plumber, we know someone,” says Davis. Make sure that if you need a reference or a hookup while purchasing a home, your agent is willing and able to be that liaison.

16. Choose your agent!

Now for the fun (and most important) part! Compile all the work you’ve done, weigh all your intel, and make a final decision. But don’t sweat it too much. If you’ve followed all these steps, chances are you’re going to make a great, well-informed selection.

Most importantly, trust your gut. If you noticed a few red flags you can’t get out of your head, follow up with them. If you truly believe you’ve found the perfect agent, give them a call!

17. Sign a buyer-broker agreement

Homebuyers, especially first-timers, may not be aware of the buyer-broker agreement, but it’s a valuable tool and an extra protective measure for the buyer and the agent.

This document establishes an agreement between the buyer and the broker, or the real estate agent’s supervisor, independent of the agent. It also outlines the agent’s scope and responsibilities to the buyer and gives the buyer the option to switch agents if you choose to. And it includes all the other details of the professional buyer-agent relationship, like the agent’s fees and commission, and a working timeline.

Barnes says that buyer-broker agreements aren’t very common in his area, but they do have their advantages. Some upsides he notes are a higher level of commitment from the buyer’s agent. There are no surprises when it comes to any commission issues because the commission is stated in the agreement.

For the buyers, Barnes says that “once you’re committed to an agent, you don’t need to be shopping around or getting bogged down by other distractions. So it can be a more streamlined process for a buyer in that respect.”

See related story: What’s a Buyer Broker Agreement? (Know Before You Sign)

Buying a house can be stressful. Choose an agent who can help

And voila! This step-by-step guide to finding a real estate agent should eventually lead you to the home of your dreams. But keep in mind your work isn’t completely done.

Kauffman says a trusted real estate agent should be there alongside you during the entire process and should help take a lot of the stress away. If you feel like you’ve lost that trust or things aren’t working out as planned, don’t be afraid to bring up your concerns. After all, a home purchase is stressful enough without worrying about the team you’re working with. And if all goes to plan, you’ll be ready to move into your dream home in no time at all.

Header Image Source: (Pixabay / Pexels)

In today’s changing real estate market, understanding the right time to lower your house price can be the deciding factor between a quick sale and a prolonged, agonizing wait. While it’s only natural to want the highest possible return on your investment, the lack of offers might indicate that your house is overpriced for the current market conditions.

With the help of top real estate agents, we’ll unpack the factors to consider and provide proven insights to help you decide when it might be time to adjust your price.

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How can I tell if my home sale has stalled?

In many U.S. housing markets, “the pendulum has swung,” says Topher Kauffman, a top-performing real estate agent in Summerville, South Carolina, with 14 years of experience. “Some sellers have gotten the memo, and the ones that haven’t are still sitting on the market.”

But, because the market is fluid and can vary depending on location, there’s no precise timeframe in which your house should sell.

Reflecting on his 21 years of experience, “There are times when I’m advising the seller to reduce the price,” Las Vegas, Nevada, top agent Rick Ruiz says, “and other times when I’m coaching the seller to have patience and not reduce the price.”

Ruiz bases each recommendation on real-time market data. Even though sellers can’t access the extensive analytics available to real estate agents, Ruiz says these three tell-tale signs are a good indication to sellers that their market potential is stalling:

So let’s say this sounds like your situation — and you like the idea of rent to own. But you aren’t sure whether a program exists to help you get your foot in the door — or even how to find a rent-to-own home that works for you.

Well, here’s some good news: there are multiple rent-to-own programs and lease-to-own options that exist to help you get into that home, and even help you find it, too! We examined a range of programs for you to explore and consulted an experienced agent to help you understand what’s available and whether it’d be a good fit for you. But what is rent to own, and how does rent to own work? These companies help you out and answer the question, “Is rent to own a good idea?”

Step one: Talk to an expert

Connect with a top-rated local real estate agent who can help you navigate rent-to-own options near you.

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Home Partners

Through the Home Partners program, prospective rent-to-own homebuyers start by filling out a pre-qualification application. If approved, they move to submit a full application. This step includes a credit and background check, income verification documents, and requires an application fee.

Buyers will need to meet Home Partners’ minimum FICO requirement, which varies by market, and a maximum debt-to-income ratio (DTI) of 50% to be approved.

Once approved, Home Partners lets buyers know what their maximum allowable monthly rent will be. Then the home seeker works with licensed real estate agents of their choice to find the right home for them.

“Home Partners is affiliated with various brokerages and can get them connected to a Realtor®. I happen to be on their list,” explains Ellen Williams, a top-selling agent who works with 66% more single-family homes than the average agent in Joliet, Illinois. “So after they are approved, I call the client, and we talk about the process, and we go shopping and look for a house they like.”

You can either search for homes on the program’s website or choose from a wide variety of properties in communities that Home Partners serves — as long as they fit the program’s investment criteria and your budget as the home-seeker. These are the criteria for properties within Home Partners’ parameters:

• Homes must be located in approved communities around the country.
• Properties must fall into the categories of single-family homes and fee-simple townhomes.
• They must be traditional sales or for sale by owner (FSBO) homes.
• Homes must be listed at a price point between $100,000 and a metro’s designated maximum purchase price (which Home Partners sets).
• The home must have two or more above-grade bedrooms on a lot of two acres or less.

“Home Partners doesn’t really want to purchase homes that back up to big tension wires, or homes that might be difficult for them to sell in the future,” Williams notes based on her experience working with the program.

Once you find a home you love within the criteria, your agent submits it to Home Partners to review. Next, Home Partners makes an offer to the seller. If the seller accepts, Home Partners buys the home. Prospective residents then must sign a one-year lease for the home as well as a “right to purchase” agreement, similar to a lease purchase option agreement, that gives you the right to buy it later if you want to.

Home Partners property management company, Pathlight Property Management, prepares it for tenants to move in. Residents have the option to purchase the home at any time during the lease. If you do not renew the lease and don’t choose to the ‘rent to buy homes’ option, you can then move out without penalty.

Save thousands when buying a home

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Divvy

The Divvy program is best suited for move-in-ready, single-family homes. It doesn’t purchase fixer-uppers or properties like condos or mobile homes.

The program has set minimum and maximum home prices in each metro area; these range between $60,000 and $550,000. “These help us ensure the homes we buy are move-in-ready while giving our customers the best chance of buying their homes back at the end of their lease,” Divvy Homes co-founder and C.E.O. Adena Hefets told HomeLight.

Would-be Divvy participants apply for the program and get underwritten for a home budget. Divvy requires a minimum FICO score of 550. Buyers then work with a local real estate agent to find a home that meets their needs within that budget. Divvy purchases the home in cash, and the home seeker puts down between 1% and 2% of the purchase price as an initial home savings contribution, similar to a down payment. (In rent-to-own scenarios, this is known as an “option fee.”)

During their three-year lease, about 25% of each monthly payment goes toward the program participant’s home savings, building to between 3% and 10% of the home’s purchase price — enough for a mortgage down payment.

The tenant is able to buy the home at any point during their lease with no penalty or fee. If the program participant chooses not to buy their home, Divvy will return their home savings, minus a relisting fee (2% of the home’s original purchase price).

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Dream America

Dream America accepts applicants who have the income and funds needed for an FHA or VA loan, but who can’t qualify because low FICO scores or other issues make it too challenging to get a mortgage. With this program, the minimum credit score is 500, with a 50% maximum DTI.

Dream America operates in Atlanta, Dallas, Jacksonville, Orlando, San Antonio, and Tampa. Approved participants in the program can pick any house available for sale in these communities within their budget at a price of $150,000 or higher.

Dream America buys the home and leases it to the home seeker for 12 months. At any time that the participant qualifies for a mortgage, they can cancel the lease with no penalty and buy the home. Dream America credits 10% of rent paid toward the home purchase.

Program participants pay an onboarding fee of 1% of the home price as soon as Dream America is under contract to buy the home.

If the renter still needs more time at the end of a 12-month lease, they can renew for another year as long as they have been paying their rent on time each month and follow the rent-to-own contract.

Local and regional programs

Williams advises that there may be an array of additional programs available to would-be rent to owners in their local areas. She suggests searching online to identify potential local programs — and even keeping eyes peeled for billboards or other print advertisements.

If you pair up with a national, regional, or local program that suits your needs, you might just find that rent-to-own homes might be on your ideal path to homeownership!

Header Image Source: (Aubrey Odom / Unsplash)

Though California is often regarded as a high-tax state, its property and other real estate-related taxes are more middle of the road.

“The perception here is that state income taxes are high, but just on the real estate taxes themselves, they’re pretty comparable to the rest of the country,” said Craig Aird, an associate attorney with Donahoe, Young & Williams LLP who specializes in estate planning, tax, and immigration.

Some of California’s real estate taxes do vary throughout the state, however, as do the expectations on who pays certain portions of a real estate transaction.

To help you navigate some of these complexities, we’ve compiled a list of what you can expect to pay in taxes when selling a house.

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Capital gains tax

If you profit from the sale of a home in California, then you may owe some amount of capital gains tax unless you qualify for an exclusion, which we’ll address under the chart below.

Capital gains are the profits made when you sell an appreciable asset, such as a house. For example, if you buy a home for $200,000 and sell it for $500,000, then you have a capital gain of $300,000.

In California, capital gains are taxed by both the state and federal governments.

On the state level, California’s Franchise Tax Board (FTB) taxes all capital gains as regular income. Depending on your tax bracket, the tax can be anywhere from 1% to 13.3%.

On the federal level, gains can either be considered short-term or long-term.

• Short-term capital gains are when you sell an asset within a year of purchasing it. Those gains are included in your ordinary income and taxed according to your tax bracket.
• Long-term capital gains are any profits made from the sale of an asset after at least a full year of ownership. For a home sale, those gains are taxed according to the following table.

Source: IRS Topic No. 409

Both the IRS and FTB provide a capital gains tax break for home sellers who meet certain conditions. The maximum amount of capital gain that can be excluded is $250,000 for single filers, or $500,000 for a married couple filing jointly.

To qualify for the full exclusion amount, according to IRS Publication 523, the following criteria must be met:

• The home being sold is your primary residence.
• You’ve owned the home for at least two years in the five-year period before selling it.
• You’ve lived in the home for at least two years within the five-year period before selling it. The years you’ve lived in it don’t need to be consecutive. Certain exceptions to this rule are made for those who are disabled or those in the military, Foreign Service, intelligence community, or Peace Corps.
• You didn’t acquire the home through a like-kind exchange (also known as a section 1031 exchange) within the last five years. This is basically when you swap one investment property for another.
• You haven’t claimed the exclusion on another home in the last two years.
• You aren’t subject to expatriate tax (a government fee paid by those who renounce their citizenship or take up residency in another country).

If you don’t quite check all of these boxes, you may still qualify for a partial exclusion of gain. This can happen if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event. For details on such circumstances, please refer to IRS Publication 523.

How to report your California capital gains taxes

For your federal return, report your capital gains and losses by using U.S. Individual Income Tax Return (IRS Form 1040) and Capital Gains and Losses, Schedule D (IRS Form 1040).

For your California capital gains, file California Capital Gain or Loss Schedule D (540).

California transfer taxes

A transfer tax is a transaction fee tacked onto the sale of any land or real property.

California’s documentary transfer tax varies depending on the location within the state.

The law permits general law counties and cities to charge 55 cents per $500 of property value or the amount paid ($1.10 per $1,000).

This amount can only be increased by charter counties or cities — those that have adopted a charter and therefore have supreme authority over municipal affairs. Of California’s 479 cities, 121 have charters.

Here are some examples of what the documentary transfer tax looks like in a few of California’s largest cities:

*The transfer tax rate in some cities is tiered so that the greater the purchase price or market value, the greater the tax.

When transferring a home in California, the seller usually pays the tax, but this can be a point of negotiation during the transaction. If left unpaid by the time the sale goes through escrow, then the payment responsibility automatically falls on the buyer.

Property taxes owed

Annual property taxes in California have two payment stubs. They can be paid simultaneously or in two installments.

The first installment is due Nov. 1 and becomes delinquent Dec. 10. The second installment is due on Feb. 1 and becomes delinquent April 10.

Once a home is sold, the seller is no longer responsible for its property taxes.

For example, if the fictional Jim and Susie pay the first installment in November and then sell their Sacramento home in December, it is now up to the buyers to cover the second installment due in the spring.

Aird says he experienced a scenario like this firsthand as the buyer of a California home in 2021.

“Part of the closing cost was paying into an escrow for that next property tax payment that was due in a few months,” Aird says. “It was our responsibility as the buyer.”

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What about selling an inherited home in California?

For starters, there are no estate or inheritance taxes in California. So you don’t owe taxes just for inheriting a property.

As the heir, however, you do take on any debts attached to the property, such as an outstanding mortgage.

When selling an inherited home, many of the same considerations apply as they do to selling any California property. Where things differ the most are with capital gains.

Fortunately for heirs, the values of inherited assets are adjusted by what’s called a stepped-up basis, says Aird. This means that no matter how much a home has appreciated in value since originally purchased, a decedent’s heirs are not responsible for paying the taxes on those historical gains if they choose to sell the home. Rather, the property automatically converts to the current fair market value.

If the heirs choose to immediately sell that property for the assessed fair market value, then there are no gains to speak of. However, if they sell the property for more than the fair market value, or choose to hold onto the property for a while before selling and its value continues to appreciate during that time, then those are considered taxable gains.

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Other selling expenses to anticipate in California

• Title fees: These consist of title insurance and a title search. Title insurance is a contractual obligation to protect against any issues with a home’s title, such as illegal deeds, undiscovered wills, or forgeries. In Northern California, it is customary for the buyer to pay for the title insurance, but the opposite is usually the case in Southern California. It’s not uncommon for the parties to negotiate over this item or split the cost, which can range between 0.5% and 1% of the sale value. A title search, which costs between $75 and $200, can be paid by either the seller or the buyer and is done to prove that the seller is the rightful owner of the property and that there are no outstanding claims or judgments.
• Settlement fees: Amounting to about 1% of the home sale value, this lump sum (also known as escrow fees) is issued by the title company, escrow company or attorney that is facilitating the closing of the transaction. The payment is designed to cover all that’s involved in handling the final paperwork and distributing funds to the appropriate parties. As with title fees, this can be paid by either the buyer or seller, but is often split between both parties.
• Agent commissions: The agent commission fee in California is generally about 6% (3% for the buyer’s agent and 3% for the listing agent). The seller typically pays for both agents’ commissions.

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Ways to prepare for real estate taxes

Real estate taxes don’t need to be a surprise or intimidating.

There are some simple steps to take that can help you prepare for what’s to come if you decide to sell a home in California.

• Know your home’s value: One initial step is to use an online Automated Valuation Model (AVM) tool like HomeLight’s free Home Value Estimator. Having a ballpark idea of what your home might be worth can help you calculate the potential capital gains from the home sale.
• Save the right documents: Another step is to know what tax documents you will need if you purchased or sold a home. Consult with your tax advisor about the federal and state documents required to file in California, and what tax breaks might be available for your selling situation.
• Find a top agent: Another helpful step can be to partner with an experienced real estate agent who can guide you through the home sale process. A qualified agent can help you understand the tax ramifications and ensure a favorable outcome by maximizing your profit. Our data shows that the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent.

HomeLight makes it easy to find top-performing real estate agents in your market. We account for factors like the real estate agent’s sale-to-list price ratio and how that maps to local price trends so that you can find top agents who will put more cash in your wallet when you close.

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It might seem like a good idea to hire someone you know — like a family or friend who happens to have their real estate license — but that decision could backfire. You need an experienced and specialized professional: a buyer’s agent.

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Working with just any real estate agent isn’t necessarily bad, but there is a difference between a regular agent and an exclusive buyer’s agent.

Agent Ken Mucha, an Accredited Buyer’s Specialist who works in Bend, Oregon, emphasizes the importance of working with an exclusive buyer’s agent.

“I think the critical thing is that they’re more highly specialized and razor-focused in spending time and resources only with buyers to find them their dream home at the best possible price and terms,” says Mucha.

If you’re thinking of buying a home, and especially if you’re a first-time homebuyer, you need a professional who’s willing to jump into the trenches with you. We spoke with the experts and put together this guide on where and how to find a buyer’s agent who has your best interests at heart.

In this article, we explore the reasons why some agents might offer a discounted rate and what kind of service you can expect from a low-commission agent or discount brokerage. To help you make an informed decision in your agent search, we spoke with top-performing real estate agents:

• Megan Hill, who has 68% more single-family home transactions under her belt than the average agent in Montgomery, Alabama
• Jose Valiente, who sells homes 49% faster than the average Hialeah, Florida, agent
• Mario Avalos, who has 13 years of experience selling homes in  Miami-Dade County, Florida

Let’s jump in.

How does a 2% real estate commission work?

Low-commission agents, 2% commission companies, or discount brokerages charge a reduced 2% commission to home sellers. While this may look like a 3% to 4% discounted commission fee of the average 5% to 6% commission, it’s actually a 1% discount or less, because it typically only applies to the listing agent’s commission.

Still, that one percent can add up to thousands of dollars in savings depending on the price of your home. However, as we explain later, paying a reduced commission may impact the total profit you make on your home sale, leaving you with less money at the end of the day.

What is the average real estate commission rate?

According to HomeLight’s real estate transaction data compiled from thousands of home sales each year, the national average real estate agent commission rate is currently 5.8%. Locally, commission rates can vary. Here’s a round-up of commission rates across a few major U.S. cities:

• Los Angeles real estate commissions: 4.96%
• San Francisco real estate commissions: 5.04%
• New York real estate commissions: 4.72%
• Bakersfield, California real estate commissions: 5.36%
• San Diego, California commissions: 4.92
• Atlanta, Georgia commissions: 5.98%
• Washington, DC commissions: 6.0%
• Fort Lauderdale, Florida commissions: 5.98%

The data shows that in the typical real estate transaction, a seller pays somewhere between 5% and 6% in commissions. However, the listing agent doesn’t pocket the entire fee. The buyer’s agent typically takes a 50% cut of the total commission fee. In addition, both the buyer’s agent and the listing agent will pay a portion of their commission to their companies for brokerage and desk fees.

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How much can I save with a 2% real estate commission?

In a 2% real estate commission scenario, the 2% commission fee only applies to the listing agent’s commission. It’s important for a seller to understand that the commission paid to the buyer’s agent doesn’t disappear. Your listing agent may recommend that you also pay the buyer’s agent anywhere from 2% to 3% in commissions.

For example, if the average commission in your area is 5.8%, you may pay 2.9% (50% of 5.8%) to the buyer’s agent on top of the discounted 2% fee paid to the listing agent, for a total of 4.9% commission. When you account for the buyer’s agent costs, the savings gap you’d earn with a 2% versus a 6% commission agent narrows considerably.

In the chart below, we show you the total commissions you’ll pay with discounted 2% listing fee and a 2.5% buyer’s fee. The actual amount you’ll pay a buyer’s agent depends on what’s typical for your area and the rate you agree to pay. (As we discuss later, you can negotiate a buyer’s commission that is lower than the average rate, but there are risks.)

*Commission rates are estimates and are not a guarantee for your home sale.

Can you pay a 2% commission to the buyer’s agent as well?

As we mentioned earlier, you can negotiate with your listing agent to pay a reduced commission to the buyer’s agent. It may seem that cutting the fee you pay to the buyer’s agent doesn’t affect the listing agent, but this isn’t necessarily true. The buyer’s commission is published in your home listing, which may make your home less appealing to the buyer’s agent. For this reason, cutting the buyer’s commission may make it difficult for the listing agent to sell your home.

“When an agent sees the 2% commission split in the listing, they’re not going to prioritize it over a 3% listing. They’re going to go where they can make their money,” explains Hill.

Why would an agent offer a 2% commission?

Avalos, Valiente, and Hill agree that a top-producing agent would not be as likely to devalue their services to offer a 2% commission. Successful agents know their worth and respect their clients enough to give them the full level of service they expect — and that’s not possible when cutting huge corners with commissions.

However, there are certain situations in which an agent might work for a lower commission, such as:

The agent doesn’t need to put in as much work

If you’re selling your home during a hot market when homes sell fast, the agent may not have to invest as much time or effort in completing the sale. The same is true if you have an in-demand home. If your home is in a desirable location, has an attractive listing price for a select buyer pool, or has a high level of coveted upgrades, an agent may consider it an easy-to-sell prize.

An agent may also consider a reduced commission if you have the time, experience, and willingness to take on a portion of the work. There’s a lot involved in the selling of a house, but if you’re a professional photographer, videographer, interior decorator, or digital marketer, and you’re a go-getter who wants to be more involved in the sale, an agent might cut you a deal.

The agent doesn’t intend to put in as much work

Valiente elaborates that an agent offering a 2% commission either doesn’t fully understand how much work must go into selling a house or simply doesn’t intend to put in that level of work. However, by contrast, a top performer will have sold enough houses to know what their time is worth and can afford to turn down a client who won’t accept the standard rate.

The agent needs experience

An agent’s main motivation in offering a reduced commission rate is often to attract more clients and encourage them to sign a listing contract. A brand new agent or part-timer may not be able to “win” the listing based on a history of successful sales or a bevy of great client reviews. Instead, they may lower their rate to make the risk of underperforming worthwhile to their client.

We recommend that sellers know how many transactions are average for their area and how many transactions their agent has under their belt. According to the National Association of Realtors (NAR), the median number of transaction sides in 2021 was 12 units per Realtor®, which includes buy-side and sell-side transactions. How many transactions a top-producer closes depends on what’s typical of their local market and the brokerage that they work for. It could be 40-50 sell-side transactions in some areas, or it could be over 100 in a busy local market.

“I checked out one brokerage offering 2% commission, and they have 25 buy-side and 25 sell-side transactions for the year with about 10 agents,” explains Hill. That’s a low number for Hill’s Montgomery, Alabama area.

Fewer homes are being listed

Similar to other sales industries, there are times when supply is low. The 2% commission can give an agent an edge in a competitive market where inventory is low and other agents are clamoring for limited listings. Fall and winter are traditionally slower when it comes to the number of properties being placed on the market. During this offseason, or during a hot market when there’s an inventory shortage, agents may be competing for seller clients and be more willing to accept a lower commission.

Your home has a high listing price

If you’re selling a luxury home, a home in an area where the average market value is high, or a home with lots of upgrades, the agent stands to make a good commission even at 2%. In fact, an experienced agent may offer a discounted rate to sell a luxury home, so it’s a good idea to check your local brokerages before you look into a discount brokerage.

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What services will you get with a 2% rate?

If the 2% real estate commission sounds too good to be true, it might be — depending on what you need and expect from your agent. Don’t assume that you’d get the same level of service as a seller who’s paying the full commission rate. Talk with the agent to find out what services he or she provides for the reduced rate and request a written breakdown so you can see what’s included line by line.

For example, the house selling down the street at a 6% commission rate might have the advantage of a 3-D video tour, professional staging, dozens of professionally shot photos, social media promotions, and frequent communications from the agent. As a result, it could end up selling for a higher amount that could exceed what you would have saved with the discounted commission.

If you’re just looking for an MLS (multiple listing service) listing and bare-bones representation, and you have the experience to provide the bulk of the marketing and promos yourself, a 2% agent might be acceptable for you. But if you prefer the full-spectrum service you’d get with the standard commission rate, think twice about cutting corners.

Keep in mind that you can interview more than one real estate agent before you hire one. One idea is to compare the services of your 2% commission rate agent against the services of a top local agent apples-to-apples to see if the trade-offs would be worth it to you.

What are the risks of using a 2% commission agent?

Quality, cost, and speed are the top criteria people consider as they make their spending decisions. The general rule is you can’t have all three. Although there are exceptions to this rule, typically you sacrifice one for the other. When you opt for cheap or fast, you don’t always get quality. So if you prioritize a lower commission fee in your agent search, quality and speed could be affected.

Here are the top risks to consider in working with a 2% commission agent:

You lose in negotiations

Avalos sees a sprinkling of 2% commission agents in his market. In his experience, any agent charging 2% will likely lack the same level of knowledge for how to negotiate when selling a house that full-priced agents have.

“If an agent values themselves that low, they probably don’t have the confidence or expertise to negotiate effectively with buyers. The buyer will likely end up bringing down the price, which could offset the savings from the lower commission,” explains Alvaro.

You don’t receive dedicated service

An agent who offers discounted rates across the board may need to take on a larger number of clients to make up the difference. If that’s the case, they might have to allocate less time and attention to each client. This may mean that they could be slower to respond to your communications and offer less guidance than you expect.

If you want an agent who is laser-focused on selling your house, can offer personalized service and quick responses, and can afford to invest in the “bells and whistles” when marketing your home, you may be disappointed by what you’ll get in exchange for the 2% commission.

When you pay an agent the full commission rate, you typically can expect dedicated services. A dedicated agent will thoroughly research the comparative market analysis (CMA) they use to help you price your home. They’ll walk you through the sale, provide recommendations that will smooth the process, advise you on the pros and cons of each offer you receive and each step you take, and provide expert advice through any rough spots of your transaction.

“I do my CMAs by hand and it takes me three days before I get a price back to the seller. I don’t just pull tax records, slap a price on it, and move on. I’m going to do my calculation and compare it against what the computer says, then I’ll go back and pull costs from the neighborhood specifically. I’m evaluating the lot, the acreage, the upgrades, and the updates,” says Hill.

A real estate agent fully dedicated to your needs will pull out all the stops to make sure you have a satisfying sale. You may even be able to ask them to take complete charge. For example, Ryan Lidholm, a top real estate agent in Columbia, Missouri, sold the home of retired couple Debbie and Carl Kindle while they traveled the country in an RV. Talk about a stress-free experience.

You undersell your home

According to our home sales database, the top 5% of agents sell homes for as much as 10% more than the average real estate agent. A top performer is going to be in tune with what local buyers seek and how to make your home irresistible to them. They’ll also bring hyper-local expertise to more effectively market nearby walking trails, coffee shops, or neighborhood amenities. When buyers ask about crime and school districts, a top agent will point them to the right resources to get the information they need.

But a 2% commission agent is still cheaper, right? Well, let’s say hypothetically you do partner with a top agent versus an average one. The top agent helps you maximize the value of your home with spot-on pricing, strategic prep, and a strong marketing strategy that helps you generate tons of interest. Suddenly, the house you would have sold for $300,000 goes for $330,000 — the 10% bump credited to the special expertise of the agent.

In this scenario, the agent’s added value (the additional $30,000) would exceed the cost of the standard 6% commission, amounting to $19,800 on a $330,000 sale. While it’s not guaranteed an agent will add a certain amount of value to your list price, our data shows that top agents consistently earn their seller clients more than their peers, helping to offset and even exceed their commission fees.

How does a 2% commission compare to a 0% commission (flat-fee service)?

You could ditch the listing commission altogether and pay a flat fee for placement on the MLS. These services offer different pricing structures starting at around $99 for an MLS listing, a few photos, and some other basic services. The seller can pay a little more to include extra photos and get a more prominent placement.

The biggest caveat here is that you won’t have a dedicated, personalized resource to help sell your home. This option is typically a resource that benefits for-sale-by-owner (FSBO) sellers. Once your home is listed, you’ll be responsible for all of the services that an agent would usually handle:

• Prepping and staging your home for sale
• Setting an appropriate price
• Marketing your home to the right buyers
• Responding to all buyers’ inquiries and scheduling all showings
• Negotiating with buyers and buyers’ agents
• Handling all paperwork, disclosures, and contracts

If you’re juggling a job, family, and other obligations, or if you just aren’t knowledgeable about the home-selling process, using a flat fee listing service might require more time, knowledge, and energy than you’re able to commit. In addition, data from NAR indicate that FSBO homes sell for 11% less than homes sold by real estate agents, so it could be a wash as to whether you’d actually save money by taking on all the work solo.

What about agents whose rates are under 2%?

While there are discount brokerages and low-commission agents that are willing to dip below the 2% mark, the risk of sub-par service increases as the commission drops. Most agents won’t be able to devote the same time and resources to a deal that is barely earning them a living wage, and some may cut certain services with their rate.

For example, a discount brokerage that offers a 1.5% commission may consider products and services that are standard with a full-commission agent as optional add-ons for which you’ll pay an upcharge. This may include a yard sign, a lockbox, photo or video services, staging, etc. While they may list your home in the MLS, post your listing across their own real estate channels, and oversee the documentation, they may not provide in-person representation or devote any time or money to drive buyers to your listing.

Are there other ways for sellers to save money in the transaction?

The good news is that a homeowner can still save money in the sale of their home with a full-commission agent. Some of the ways our experts recommend sellers cut costs include:

• Selling a home that’s in poor condition “as is” to eliminate the cost of repairs
• Negotiating for the buyer to pay a portion of the closing costs, which could include commissions
• Capping repairs at what is required by the lender

“I tell my sellers to make the [lender-required] health and safety repairs and then offer a home warranty because it’s cheaper,” says Hill. More information about how home warranties can save you money is available here.

A top agent may save you money in the long run

While a 2% commission rate may seem appealing at first, the bottom line is that you may lose value – and money – in a cut-rate deal. Based on these insights from our experts and transactional data, hiring a full-commission top-performing agent may give you the best chance at a highly successful outcome. In addition, having a proven, experienced real estate professional in your corner means you can expect to receive dedicated service and guidance throughout your transaction.

If you’re looking for a top agent who will guide you along the way and help you get the best price on your home sale, we’d love to connect you to an agent with a track record of satisfied clients. Our service is completely free, and in two minutes, we’ll recommend the best agents near you.

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Top agent Dave Mattes, who completes 16% more sales than the average agent in Reading, Pennsylvania, thinks that “a good real estate agent is somebody that dedicates enough time to treat their customers well, and they have fast responses, market knowledge, and good communication.”

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Four steps to find a Realtor that’s right for you

You can work with either a real estate agent or a Realtor to buy or sell a home. Both professionals are licensed to transact real estate. But note that Realtors are members of the National Association of Realtors and who are bound by the Realtor Code of Ethics. Be sure and ask any agent that you’re interviewing about these qualifications.

Beyond that, the right Realtor for you will know how to market and sell your house and know your area inside and out. They’ll not only help you sell for more or save money where it counts, but negotiate for other non-financial concessions that you might need. And through it all, they’ll keep you appropriately informed.

Learn more: How to pick a Realtor and sell your house fast

Step 1: Look to the past. What are the agent’s actual results?

There are countless online sources where agents can purchase ads, listings, and even pay to insert testimonials. If you’re only looking at an agent’s online presence, you’re not seeing the full picture. One of the best ways to know if they’re effective is by their results. Past success is one of the strongest indicators of future success.

Before hiring a Realtor, think about what matters the most to you: speed of sale, sale to list price ratio, or knowledge of your neighborhood. How quickly has the agent sold homes in your area before, and did they sell for list price or above? Once you know your priorities, use the agent’s results data to narrow your search.

All of these strengths are represented in a Realtor’s sales history, but who has time to dig through months worth of listings?

Today, companies such as HomeLight will do this work for you — and fast. Our agent-matching platform surfaces sales records of top real estate agents in your area to provide individualized agent recommendations. Simply tell us a bit about your plans to buy or sell, we’ll run a query, crunch the data, check reviews, and provide you with up to three relevant and qualified agent matches in just two minutes.

Our powerful, data-driven tool analyzes millions of home sales to find the best performing real estate agents in your area. Its results aren’t based on questionable surveys, submitted testimonials, paid ranking systems or a friend’s recommendation — but on what they get done for their customers. The match tool’s speed and easy-to-read results allow you to browse and review agent profiles to determine who you’d like to interview. Enter your city and click “find an agent” to get started.

Step 2: Look at the now. Is the agent engaged in the current market?

A successful agent is one who is actively listing and selling — now. They’ll have their finger on the market’s pulse, and have updated skills and strategies to bring buyers and sellers together. After narrowing your list of potential agents based on past success, look at their current pipeline.

Especially with the difficult economic conditions of inflation and increasing mortgage rates throwing a wrench into the real estate market, finding an experienced agent becomes all the more important.

Mattes advises sellers to “look for agents that have active inventory.” You want to work with the people who are “actually doing business, and who have a flow of business that you can witness online,” he advises.

Do they have sales or listings pending? How many sales did they close in the last few months? A quick glance at a few of their online profiles gives you a good idea of their market activity.

Step 3: Interview at least three designated top agents

Once you’ve found a few great agents in your area, take time to interview and get to know them. Once you decide to list or buy, you could be talking to them several times a day. You’ll want to have a good rapport and clear communication. When you’re interviewing the agents, pay attention to how they respond.

Do they answer your questions with concrete, factual data? Beware of agents who respond with vague answers. You want someone who knows the average days to sell in your market and the current average list price off the top of their head.

Look for signs that they know your market, like mentioning the new grocery store opening down the block. A good agent is on top of changes that impact your home’s value.

Step 4: Ask agents the right questions

When it comes to interviewing agents, you could ask over 20 different questions to find the right fit. But if you don’t have that much time, here are the top five questions to ask.

Q: What is your “days on market” average?

A: The days on market is the number of days, on average, for the agent to sell a home. For great agents, this number is typically about half of the days on market for average agents. HomeLight provides local days on market information for cities across the nation.

You’ll find a list of popular cities at the top of our tool, and cities in each state down below. Once you select your location, scroll down and look for the chart with the “Days on Market” figures. You’ll also find additional information about what a top local agent can offer.

Q: How many homes have you sold in the past 12 months?

A: According to top real estate agent James Silver, who works with 76% more single-family homes than other agents in Detroit, Michigan, a real estate team should sell around 200-300 homes in a year. He says that a good number for a single agent is in the 30-50 home range. This range won’t be the same in other areas, so compare an agent’s transactions to your market’s norm. In addition, consult our guide on “How Many Homes Should a Realtor Sell a Year?”

Q: What is your sale to list price ratio?

A: This percentage is the final sale price (what the buyer paid for the home) divided by the last list price. A positive ratio tells you that they sell homes for more than the listing price. Look for an agent with a sale to list price ratio that’s over the average in the area.

Q: How well do you know the market in my neighborhood?

A: Selling points like the quality of local schools, access to nearby restaurants and grocery stores, and crime data, help market your home. You want an agent who can rattle off the pluses of your area during an open house, or point out what makes your location desirable.

It’s a good sign if they live nearby or have had the bulk of their transactions in your neighborhood. An agent’s HomeLight profile page also has a map of every location where they’ve bought and sold houses, so you can see their activity in your area at a glance.

Beyond the neighborhood, do they know the real estate market? Even if you’re in a seller’s market, you want an agent who knows which concessions are common for your area, and what you can safely ask for during negotiations without risking the sale.

Q: What are your priorities for buyers/sellers?

A: What do you need most from the sale? If you’re selling a home and relocating to another state, speed may be your top priority. You need an agent who does their job well, fast, and keeps contact to a minimum. First-time sellers or buyers likely need an agent who will go out of their way to explain every step. Think about whether you need an agent who keeps you in the loop or takes care of all the details without checking in constantly.

Learn more: How to choose a Realtor for selling

What makes a good real estate agent?

Numbers are only one slice of the pie, however. There are other factors that make a good real estate agent the best choice to list your home. Here’s what to look for in a Realtor:

Has relevant professional certifications and experience
An agent who has learned about the market, contracts, and the laws surrounding real estate is the best choice to represent you. Their professional certifications indicate their competence, as does their years of experience. Some agents may have taken extra training in investment properties, waterfront properties, luxury homes — or in how to help specific clientele such as seniors or military.

Dedicated to the profession — not a part time hobbyist
You want an agent who makes their bread and butter from real estate, not someone who will be working at a day job when you call with questions. Accessibility indicates that they’re dedicated and give it their all. “If you email that agent to set up any sort of time or call them and they don’t answer or email you back promptly, it tells you how your sale is going to go,” says Nikki Lagouros is a full-time agent in Reston, Virginia, who sells properties 40% quicker than the average agent in her area. “It’s a huge red flag.”

In-depth knowledge of the local market
A great agent will have an in-depth knowledge of the local real estate market, but also the area. They stay informed about upcoming developments that could impact your home’s price. Plans to build a new highway on the other side of your backyard decreases its value; a new playground park increases it.

According to Lillian Montalto, a top listing agent in Andover, Massachusetts, buyers should make sure an agent “knows the marketplace, knows the inventory, is able to provide [them] with information, like how hot the market is and what homes are about to list.”

Tech-savvy marketing skills
Does an agent post regularly on Instagram or another social media feed? Do they know how to get your home out to a wide circle of interested buyers?

Lagouros leverages social media marketing to target potential buyers. After creating an avatar of an ideal buyer for one of her listings, she builds geo-centers around demographics and areas that target them in her social media marketing.

More and more, buyers are shopping for and purchasing homes online. According to HomeLight’s Top Agent Insights Survey for Spring 2023, 81% of agents report leaning into social media as a marketing strategy to reach these potential buyers. Pick an agent that caters to this slice of the market to increase your odds of selling quickly and for top dollar.

Customer-fit communication style
Depending on the situation, some sellers want an agent who gives a high level of personal attention. If you send a text about an offer at 10 p.m., you don’t want to wait until 8 a.m. for a response. Other sellers might prefer to keep it short and sweet, or handle everything by email (for example, if you’re selling a vacation home).

Your agent’s communication style should fit your preferences because you’ll be talking to them a lot — before listing or when looking at houses, and when evaluating offers.

In a multiple offer situation, Mattes says that sellers need an agent who can help them sort it all out in a way that makes sense — helping them narrow it down if they want government financing, a cash deal, or no inspections. It’s an important part of their job to communicate the differences between offers to help you pick the one that’s best for you.

Has a network of professionals
Would staging your home increase its sale price? Maybe the dining room could use a fresh coat of paint. A great agent has a network of professionals that they can call on to get your home ready for sale and also help out during the sale. Buyers often request repairs after the home inspection, but if you have to call around town and get recommendations and quotes, it could delay the closing. A good agent will know the right person for the job.

Integrity, the respect of their peers, and negotiation skills
A good agent will tell you the truth even if you don’t want to hear it. They’ll encourage you to be honest on seller’s disclosures, saving you from potential lawsuits after the sale. This integrity has likely led to a good reputation and the respect of their peers, which might be measured by industry awards.

They’ll bring this integrity to the table during negotiations. Even if you have a great offer, or have found a home that you’re thrilled to buy, there’s always something to negotiate. It could be the close date, repairs, or a rent back period. A good agent knows how to handle the back and forth of negotiations.

Dogged determination and self-motivation
Agents are independent contractors without the security of a regular paycheck of a 9-to-5 job. Successful agents will have the dogged determination to succeed, following up with interested buyers, responding to text messages late at night, and constantly working to get their sellers the best results.

What are the signs of a bad real estate agent?

A bad real estate agent could be one that isn’t a good fit for your needs, or one who won’t get the job done. If you see any of these red flags, get another agent.

• Invisible results and vague experience
  While we all have to start somewhere, you probably don’t want an inexperienced agent handling your largest asset. If you hear lies and half-truths when asking about their sales record, run! A good agent will be upfront about their past results and experience.
• Real estate is only a side gig
  An agent who only sells real estate part time is unlikely to get you the results you want. Ask if the agent works real estate full time.
• Unprofessionalism on many levels
  Do they show up with unkempt hair and a stained shirt? Is their behavior, such as late or no-show appointments, demonstrating unprofessionalism? Buying and selling real estate is a business transaction, and you want to work with a professional. Also beware of arrogance or an abundance of ego, particularly when you ask about past sales. An agent who responds arrogantly will be off-putting to other agents, making it difficult to negotiate, and could be over-inflating their track record and lack needed experience.
• Unfamiliarity with the market
  If an agent can’t answer basic questions about the market, specifically the market in your area, it’s a red flag. Another sign they don’t know your market? Lagouros says that if they “don’t know the guidelines on the HOA, or of the condo association, or the various models or layouts for that neighborhood,” the agent could be misleading you about their expertise.
• Shaky negotiation skills
  To close a sale, the agent has to be your best advocate, whether buying or selling. If an agent is over-eager to please, seems to be faking their enthusiasm, or you’re starting to feel like they’re not on your side, they might be the wrong agent for you.
• Pushy with an agenda, too much pressure
  Ever got the feeling that a salesperson cares less about putting you in the right car and more about their commission? The same can be true for some real estate agents. When an agent is pressuring you to accept an offer that doesn’t fit your most important needs, take a step back. Also, pay attention to signs that your agent is misreading your cues — such as failing to even ask for what you want — or not listening to your answers.
• Doesn’t understand contracts
  It doesn’t matter if the agent’s a good negotiator if they don’t get it in writing. Buying and selling real estate are legal transactions, and you need the protection of strong contracts. According to Lagouros, good agents know the contract and all the implications and loopholes to protect their buyers. She points out that in a real estate transaction, “people are putting down earnest money deposits of $100,000. If the agent flubs something in the contract, they could lose that money for them.” A good property agent should go over the contract to list or represent you as a buyer, and be able to explain confusing terms and clauses.
• You’re getting nowhere
  Has your home been on the market for longer than normal? If there isn’t an identifiable reason — your home’s condition or poor location — it could be a sign that your agent isn’t doing their job. Consider canceling your contract with them and finding someone else.

Differences between agents for buyers and sellers

Agents may specialize in helping clients buy or sell homes. Most agents provide both services, but it’s common for agents to start their career helping buyers, and then graduate into becoming a more regular listing agent. As you search for your perfect agent match, look for agents who work primarily on your side of the transaction and are passionate about their job.

Mattes thinks that the advantage to working with an agent who exclusively handles either buying or selling is that you get somebody 24/7. If it’s a buyer’s agent, “They’re super focused on finding people a home and then learning the tactics to help their buyers get a home over somebody else,” he says.

Now — go find a great agent!

Buying or selling a home is no easy task, but the right real estate agent can make all the difference. According to our internal data, the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent. If you’re overwhelmed by the idea of finding an agent and sorting through their qualifications, HomeLight would be happy to introduce you to a few top candidates in your area and get the ball rolling.

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For most sellers, saving on real estate agent commission fees is the biggest appeal to selling by owner. But before you make the decision based on money alone, make sure you have a good grasp of the process and the amount of work involved.

Get a cash offer (no agent commissions)

Sell your home for a competitive price in as few as 10 days, with no additional fees, agent commission, or prep‑work. All you need to do is tell us a bit about your home and speak to a home consultant. This helps us get the best possible offer from our investors for your home.

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Joel Carson is a top real estate agent in Salt Lake City, Utah, with 32 years of experience helping home sellers and buyers in all kinds of housing markets. He points out that, “It’s the largest transaction that people do in their life. Without having a professional who does this for a living looking over documents and making sure the seller understands all aspects — that the buyer gets a proper inspection, and communicating what expectations buyers should have of the seller to make repairs — a lot of that is lost.”

He thinks that “for sale by owner,” or FSBO, sellers can sometimes underestimate all the moving pieces that go into a successful real estate sale, which is why we’re going to break them down for you.

A home’s condition can also be a big factor in why you need to sell a house quickly. Houses require constant maintenance and can become an enormous burden. Listing and selling a fixer-upper can prove difficult unless you have enough cash for repairs.

Step one to selling fast: Talk to an expert!

Sell your home for a competitive price in as few as 10 days, with no additional fees, agent commission, or prep work. Start by telling us about your home and speak to one of our Home Consultants. This helps us get the best possible offer from our extensive network of investors nationwide.

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Others want much-needed convenience amid juggling work, parenting, and additional demands while selling a home. One study found 84% of Americans report feeling stressed weekly. Maybe when it comes down to it, you’re not interested in repeated showings or haggling with buyers who expect HGTV move-in-ready homes.

In this handy, easy guide, we’ll share your best options when you need to sell a house fast.

Sell my house fast option 1: Get a cash offer

If you find yourself saying: “I want to sell my house urgently,” one of the fastest ways to close the sale and move on is to request a cash offer.

You could contact multiple companies or the first We Buy Houses website you come across, but there’s a much better way to sell your house for cash — and that is through HomeLight’s Simple Sale platform.

Simple Sale brings together one of the largest networks of cash buyers in the U.S., slashing your closing timeline and letting you choose your move-out date. Essentially, we compare sites like “We Buy Houses” to nearly every other option you could find and present you with the best offer.

Simply answer a few questions about your home, and you can receive a no-obligation all-cash offer within a week.

How fast?: Sell your house in as little as 10 days

Key benefits:
• Speed
• No repairs
• All cash
• Simplicity
• No-obligation offer
• Typically the best way to sell your house

Maybe you’ve got a small, outdated ranch in Dallas, and you’re wanting to escape the city’s continued growth to find more space in Colleyville. Perhaps your Austin bungalow was damaged in a fire, and you’re not quite up for the repairs. Or maybe, you’re ready to leave the Lone Star state altogether and relocate to California or Colorado.

We dug into the details on hundreds of We Buy Houses for Cash companies across Texas and rounded up some of the best options available. We also provide guidance on how Texas cash-for-homes companies function, how much they might offer for your home, and how you can weigh your options so you’re happy with your sale.

Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. Links and mentions of Texas “we buy houses” companies should not be considered an endorsement. 

Sell Your House in Texas Fast With a Cash Offer

Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses. Available to sellers throughout Texas.

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Working with house-buying companies in Texas

We Buy Houses companies in Texas typically promise quick, all-cash offers and ultra-fast closings, often in as few as seven days. They tend to target distressed properties in need of repairs, and work with sellers who need to move ASAP.

Here’s how the process generally works:

1. You request an offer and provide the company some information about your home. Some companies may make a preliminary offer at this stage, but it’s usually subject to change once they’ve inspected your property.
2. The company completes a walkthrough of your property, usually within 24 to 48 hours.
3. The company makes a firm offer (usually within 24 hours, sometimes on-site after the walkthrough), which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
4. If you accept the offer, you’ll both sign a contract and the closing process will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
5. Closing and getting paid is quick, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

According to HomeLight’s data, the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent.

“This is the biggest asset that most people have. It’s going to be the biggest sale they ever have,” shares Mark Boyland, a top real estate agent in Scott’s Corner, New York, who’s ranked in the top 1% of real estate agents in the Hudson Gateway Multiple Listing System since 1995. “It’s important that [sellers] get the best representation when they’re going to do that.”

Find a Top Agent to Sell Your Home for More

Tell us a little about your home and selling needs and we’ll provide recommendations for up to three top real estate agents in your area.

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But with over 1.5 million real estate agents in the U.S., picking the right agent can feel, well, overwhelming. To help simplify the process and guide you through a smooth, profitable, home-selling experience, we’ve vetted expert advice from top real estate professionals and created this 10-step guide to picking your perfect agent.

1. Compare agents online

There’s no shortage of online resources for researching agents. But how can you ensure you’re choosing a top agent?

An easy way to find highly rated agents in your area is HomeLight’s free Agent Match tool. Our matching platform analyzes over 27 million transactions and considers an agent’s specialties and certifications, their years of experience, and their successful home sales in your neighborhood. Each agent is at the top of their field, so you can be confident that they’ll help you maximize your profit.

Each suggested agent is proven to outperform other agents in their area for properties similar to yours by measurable factors including:

• High volume of home sales in your price range
• High sale-to-list price ratio
• Lower than average days on market
• Top-rated client reviews

Once you’ve selected a few agents online, scope out their websites, social media, reviews, property listings, and more to see how they professionally market themselves. Their online presence may also provide a further look into their personalities and show whether they’re using current technology and trends.

For a deeper dive, Google each agent’s name and read additional reviews wherever you can. Notice which positive qualities are mentioned repeatedly and see how the agent responds to any negative reviews.

2. Get referrals from a trusted source

In a 2022 survey, the National Association of Realtors concluded 36% of sellers found their agent through referrals by family and friends, and another 27% stuck with an agent they had previously used when selling or buying a home.

So, do you know of any family, friends, or colleagues who have recently used an agent to successfully sell their house? What about anyone through your social network? Maybe they worked with an agent on your list, and you can score a firsthand recommendation.

If you have to lower your price, so be it. An old electrical panel, stained carpeting, and kitchen straight out of the ‘90s mean buyers won’t consider the house move-in ready or necessarily pay top dollar. But you don’t have enough money or time to perform a bunch of work, and you’d rather just collect a decent sum and move on.

But to sell without doing repairs, you’ll need to find buyers willing to take on homes that might need a little TLC. And, you certainly don’t want to leave any money on the table. So how do you pull off a profitable, quick as-is sale?”

Sell Your House Just the Way it Is

House needs some work? No problem. Skip repairs, staging, and the hassle of open houses. Get an all-cash offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer within a week and close in as little as 10 days. Available to sellers across the U.S.

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To get answers, we called on a highly-experienced group of as-is home sale experts for the scoop on how to nail an as-is sale.

Without further ado, here’s what the experts have to say about selling a house as-is. In the end, hopefully, you’ll be able to answer the question, “Should I sell my house as-is?” with confidence.

What does it mean to sell a house as-is?

What exactly does it mean to sell as-is? In short, it means a buyer will purchase your home without you making any repairs.

The term can be used broadly by many agents to simply refer to a home sale for a house that hasn’t been recently updated or is in need of repair.

According to Mandy Williams, a top Alabama real estate agent, that can look a lot different than a turnkey transaction. “A lot of buyers expect to walk into a house that’s listed on the traditional market and see a home that’s been completely updated to today’s trends and standards,” explains Williams, who sells homes 35% quicker than the average agent in Birmingham.

But marketing your home as-is conveys to buyers that your home may be in imperfect condition, notes Jena Bebleh, a top agent in Peoria, Arizona, with 18 years of experience. “In an as-is sale, a buyer is purchasing a home in its current condition,” she says. “That may mean the seller won’t do any repairs, even if they come up on an inspection report. The buyer is willingly purchasing the home in its current state with full knowledge of its condition.”

That last bit of her comment is critical to grasp; by selling as-is, you aren’t absolved of the duty to share what you know about the home to buyers — and an as-is label, particularly on an open market sale, is not a fail-safe to avoid all negotiations.

That said, selling as-is can still be a viable strategy if you go about it the right way.

Jeff Shipwash of Shipwash Properties in Knoxville, Tennessee, flips multiple houses each year and routinely buys as-is properties. As an experienced investor, he explains, “If you own a home that needs several repairs and don’t have the finances, or simply don’t have the time or desire to undergo the stress of home remodeling, selling as-is could be for you.”

A cash buyer can also assist in the event that you can’t afford to make repairs or are helping a family member who needs to move quickly due to a change in health or other circumstance.

In recent years, technology has made it easier to find a cash offer from a house buying company. For example, HomeLight’s Simple Sale platform helps you sift through your many options by providing you with the strongest offer from our extensive network of cash buyers across the country.

Step one: Talk to an expert!

With our Simple Sale program, you can sell your home for a competitive price in as few as 10 days, with no additional fees, agent commission, or prep‑work. Start by telling us about your home and speak to one of our Home Consultants. This helps us get the best possible offer from our extensive network of investors nationwide.

Learn More

Selling a house is a big deal and starting the process can be overwhelming. When working with a house buying company, you’re typically going to receive less for your home than you would with a traditional buyer. On the flip side, many (but not all) cash offer companies will cover a seller’s closing fees.

To help you get started, let’s take a closer look at who pays cash for houses, how the process of selling a house for cash works, and the pros and cons of using cash home buyers. Then, you can make a truly informed decision on whether to sell your house for cash and who to request an offer from.

Selling a house is often a complete pain. When a potential buyer is scheduled to tour your home the next day, you can’t hit the sack. You have to bust out the vacuum and rush to tidy up so that the house looks presentable. Or you end up bleeding cash over repairs for the furnace and roof to attract a decent offer.

By selling your house to one of the iBuyer companies, you can avoid many of these headaches. The term iBuyer refers to a group of high-tech house flipping businesses that cropped up in the mid 2010s. Before you work with one, you’ll have to weigh the pros of convenience and speed against the possibility of receiving less than fair-market value and paying service fees.

Get a Quick Cash Offer For Your Home Today

It’s difficult to sell a house, especially under the pressure of a deadline. Use HomeLight’s Simple Sale platform to sell when you’re ready without the hassle of paying for repairs, prepping for listing, or dealing with showings.

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To help you navigate through selecting an iBuyer, we’ve put together a roundup on some of the top iBuyers in 2023 and details about working with each.

Who are the iBuyer companies?

The term iBuyer encompasses a list of companies including Opendoor and Offerpad. We also include information about HomeLight’s Simple Sale platform, which provides you with a competitive all-cash offer to buy your home. Although Zillow was once a top-three iBuyer, it shuttered its iBuying program in 2021. In early November 2022, Redfin announced the shuttering of its iBuyer arm, RedfinNow, after launching in 2017.

Though each business operates a little differently, iBuyers generally provide a near-instant cash offer for houses, allow you to sell your home mostly or entirely online, and can facilitate much faster closings than a more traditional or financed buyer.

“The biggest advantage is ease,” says Lynn Carteris, a top real estate agent with the Oldham Group serving the San Francisco Bay area in California. “You don’t have to prepare the house; you don’t have to repair the house.”

It’s a process that requires some thought and planning in the best of circumstances. But with housing inventories so low these last few years — even as the market rebalances in 2023 in the face of elevated interest rates — it can feel daunting trying to find your next dream home. One good piece of news for buyers: even as inventory remains low, competition has gotten less heated in 2023 compared to the previous few years, report top real estate agents surveyed by HomeLight. On the flip side, sellers are looking at slightly higher days on market.

If you’re in this situation (or think you will be soon), know you aren’t alone: 51% of all buyers owned their previous home, according to a 2022 National Association of Realtors report and 56% said finding the right property was the most difficult step of the homebuying process.

Here are the four primary options available to you when it comes time to buy a house that is contingent on selling yours.

Step one: Talk to a few buyer's agents!

Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase) and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.

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What is a home sale contingency?

In real estate, a “contingency” refers to certain circumstances that must be met before a home sale can be finalized. For instance, a property might go under contract with a house inspection or financing contingency. This means that if a significant structural issue is found during the inspection, or the buyer’s financing falls through, they’ll be able to terminate the contract without penalty.

In the case of a home sale contingency, the buyer will be under no obligation to follow through with the purchase of the new house unless their home sells.

These contingencies are typically good for one or two months: giving buyers a set amount of time to put their current house on the market and find a buyer. If their home fails to sell during this timeframe, the contract can be terminated.

There are two different types of home sale contingencies:

• A home settlement contingency is used when the buyer’s home is already under contract, the home inspection is complete and the transaction is moving toward a closing date. Because there are fewer roadblocks in this scenario, it’s typically a more attractive option for sellers.
• A sale and settlement contingency is used when the buyer’s home isn’t yet under contract and they’re still actively marketing the property. Because there are no guarantees that the house will sell quickly (even in the current real estate climate), this clause isn’t as appealing to motivated sellers.

Find a Top Agent With Experience in Home Sale Contingencies

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How does a home sale contingency work?

If you fall in love with a home prior to selling yours, your real estate agent can add a contingency clause to the terms of the offer. This clause will protect you from moving forward with the purchase before your current home sells, and can go one of three ways:

1. You find a buyer for your home and your contract for the new home moves forward as planned.
2. You don’t find a home buyer in the specified timeframe (usually 30-60 days) and the contract for buying the new home is voided. When this happens, you typically will get back any earnest money you put down on the house and will be able to start the search over again.
3. In the event of a “kick-out clause,” another buyer makes an offer on the home that the seller is interested in accepting. According to R.C. Shea and Associates, a kick-out clause is an addendum that gives sellers the ability to keep their home on the market while you try to sell your house. If they find a new buyer, they’ll give you 72 hours (on average) to either move forward with the home purchase or drop out.

How common is a home sale contingency?

With just over half of all buyers owning their previous residences, the process of buying a house that is contingent on selling yours is an everyday obstacle for buyers, sellers, and their agents. And yet, with only 5% of contracts terminated due to contingency issues in 2021, it’s certainly not an obstacle that is insurmountable — especially with a little planning and an experienced real estate agent by your side.

4 ways to buy a house contingent on selling yours

How you move forward in the process will depend on where you are now. Let’s explore the four most common scenarios so that you can put your plan into place.

Choose your own adventure by picking the path that best represents where you are now in the process:

• Your home is under contract and you’re looking for your next dream home (Proceed to Scenario A)
• Your home is on the market and you’re looking for your next dream home (Proceed to Scenario B)
• Your home is on the market and you’ve found your next dream home (Proceed to Scenario C)
• Your home isn’t on the market but you’ve found your next dream home (Proceed to Scenario D)

Scenario A: Your home is under contract and you’re looking for your next dream home

With moving day imminent, your focus is two-fold: make sure your home is packed and ready to go before the closing date, and find your new home.

If you’re already this far along in the process, you probably have a good idea about where you want to move and what your motivations are. For many buyers over the past few years, it has been a desire for more space and to be located closer to friends and family.

As you search for your dream neighborhood, here are a few key things to keep in mind:

• How affordable is the area? You’ll want to work with a top real estate agent to research recent home sales in each neighborhood you’re considering to see if it’s in your budget.
• What is the cost of taxes? Taxes can vary widely between states (and even between towns), so it’s important to factor this into your budget before deciding on a location.
• Are you seeking an urban, suburban, or rural area? 
• What is the proximity to your workplace and/or your children’s schools?
• Do you want access to public transportation?
• Are you seeking a neighborhood with historic charm or is a newly-developed subdivision more your style? 

With your real estate agent’s help, the answers to the above questions can help narrow down your list of potential neighborhoods that you’ll want to target in your search. But just because a neighborhood checks all of your boxes on paper, doesn’t mean it’s the right choice for you and your family. Here are a few online tools that can help take your research even further.

AreaVibes
Investigate the area’s crime statistics, as well as stats on other key factors, such as the area’s amenities, cost of living, education, housing, and weather. When you search for a particular city, neighborhood, or address, you’ll see how it scores in each of the key metrics, as well as how it compares to both surrounding communities and the nation as a whole.

WalkScore
If living in an area where you can walk to the neighborhood coffee shop or grocery store is important to you, then you’ll want to check out this tool. Just type in an address, and you’ll see how walkable and bikeable the area is — as well as how close you are to schools, restaurants, shops, and other areas of interest.

Google Street View
Take a virtual drive through a neighborhood to get a feel for the area, as well as the age and condition of homes, their proximity to each other, and what the traffic situation might look like. Simply type in an address and drop the “street view” icon on the map to start exploring.

GreatSchools
The quality of schools in a community has a big impact on property values and is, therefore, an important metric to consider — even if you don’t have children. GreatSchools pulls together school ratings and information for schools across the country and will compare schools within each state.

CityData.com
This site collects and analyzes data from a wide range of government and private sources to create profiles of every city and state in the country. Type in the name of the city you’re interested in learning about to get stats on the area’s demographics, income, house values, property taxes, crime levels, weather, and more.

Once you’ve identified a few neighborhoods that meet your criteria, it’s time to start house hunting. In a perfect world, your dream home will go on the market in one of these areas as soon as you start your search. If that doesn’t happen, however, or the competition in that area is so steep that houses are getting scooped up quickly, Andy Peters, one of the top real estate agents in Georgia, has an unorthodox plan he used for buyers who needed to find a new home fast.

“We sent out mailers to the neighborhood they wanted to live in,” Peters said. “It was a very simple mailer, one-pager with a picture of the client — in this case, a family of four with their dog — and we told their story.”

The strategy worked. A seller in that neighborhood had just met with an agent and planned to list their house in the next 30 days. They ended up selling their home to Peters’ clients before the house ever hit the market.

If you’re struggling to find the perfect home for you and your family, don’t despair and (just as importantly) don’t settle. It may not be your preferred option, but you could consider a short-term rental as you search for your new home.

Scenario B: Your home is on the market and you’re looking for your next dream home

While some markets are cooling a bit, it’s likely you will still be in a fairly good position to sell your current home. However, you might find yourself in a tough position when looking to buy another one.

This strong demand for housing combined with low inventory means that you’ll be in a good position to sell your current home. According to agents surveyed for HomeLight’s New Year 2023 Top Agent Insights report, however, while the crazy seller’s market of 2020-2022 may be a thing of the past, it isn’t exactly a paradise for buyers. Having an experienced real estate agent on your side who can help with this process will be key.

Navigating the buying and selling processes at the same time can be overwhelming, as your focus will be split in two very different directions. Unless luck is on your side, it’s also very likely that one process will be completed before the other.

If your home goes under contract first, go back to Scenario A. 

If you find your new home first, proceed to Scenario C. 

Scenario C: Your home is on the market and you’ve found your next dream home

In this scenario, you have to focus on both selling your current home while at the same time preparing the best offer for your next home.

To ensure the fastest sale possible, you won’t want to put any obstacles between your home and potential buyers.

Instead:

• Use a top agent’s advice to price the house for the market. Ask them to show you comparable home sales in the area over the last few months for houses that are similar in size and features to yours. A comparative market analysis (CMA) will help you better understand how to price your home based on the current real estate market.
• Make all repairs that might create buyer hesitation. The biggest things to assess are health and safety issues such as the structural condition of the house, the existence of harmful substances such as mold or asbestos, and anything not up to code. Using a home inspector can be helpful with this process.
• Don’t skimp on staging. According to the National Association of Realtors, 82% of buyers’ agents said that staging a home made it easier for their clients to visualize themselves living there. When completed by the sellers’ agent, staging cost an average of $300 — money that may be recouped at the time of sale. In fact, 23% of buyers’ agents said that a staged home increased the selling price by 1% to 5%.
• Use only the highest quality images for the online listing. With 97% of home buyers using the Internet to search for available properties, hiring a real estate photographer to take professional shots of your property can be a worthwhile investment. A 360-degree virtual walkthrough or video tour can help your property stand out, as well.
• Prepare to move quickly. Through the process of staging the home, all of your personal effects should already be packed away. To make the process of moving out (and into your new home) as easy as possible, transfer all of those boxes to the basement, attic, or a storage facility while your home is on the market.

Now it’s time to focus on that offer for the new house.

Competition is inevitable, and not something you can control. What you can control is making your offer as attractive as possible.

Here are a few tips that can help:

• Offer a higher price than your competitor. In 2022, the average home sold for 100% of the listing price. Work with your agent to provide the most attractive offer possible.
• Let the seller stay a while longer. According to Peters, there are offer terms that can mean more than money. “Terms that would be interesting to me, would be if a buyer was willing to give the seller possession after the close,” he said. “In other words, the seller has a week or two to get out of the house, when they’re living rent-free.”
• Consider using a bridge loan. Rather than relying on the sale of your home to fund your new purchase, this short-term solution can be taken out against your current home until a buyer is found.
• Include your current home’s list price with the offer. If you’ve priced your home appropriately (or aggressively), this shows the sellers you’re serious about selling your home.
• Make it personal. Never underestimate the power of sentimentality, even in a business transaction, as Peters showed in Scenario A. With this in mind, include a handwritten, personal note about what makes this property a dream home for you and your family.

Together, this combination of strategies for selling your current home, while making an offer on your next home, will put you on the best path to achieving success.

If you are facing a scenario wherein you’re selling your current home at the same time you are preparing to purchase your next home, consider jumping to our section below called “​​Another way to sell…”

Scenario D: Your home isn’t on the market, but you’ve found your next dream home

Simply put: get your home on the market.

According to the Realtors Confidence Index, houses were on the market for an average of 26 days at the end of 2022 — up from 19 one year earlier. Though that’s still a relatively short period of time, it’s can feel like cutting it very close after getting an offer accepted to make the necessary repairs and cosmetic changes to the house, list it, accept showings, review offers, go under contract and close. You run the high risk that your contingent offer will expire or the sellers find another buyer.

That’s even if a seller would take the gamble of accepting the huge risk of a contingent offer from a buyer whose home isn’t listed yet. Peters, for one, would not.

“If you had somebody come to the table and their house isn’t even listed and they want to buy a listing, I am very trigger shy to do that,” he said. “They have to show some motivation that they’re on the market and they’re making a conscious effort.”

When you’re ready to put your home on the market, proceed to Scenario C, or consider a whole new scenario below.

Other ways to sell your existing home and buy a new one

If you are a homeowner in scenarios B, C, or D, above, there are also convenient trade-in or “buy before you sell” options that can significantly reduce the stress of buying and selling at the same time.

For example, with a service like HomeLight Buy Before You Sell, we’ll work with your real estate agent to make an offer on your current home, so you can make a strong offer on a new home and close and move on your timeline. If you’re in the states of California, Texas, Florida, or Colorado, consider exploring HomeLight’s Buy Before You Sell program.

Examples of other “buy before you sell” or “trade-in” services include: Knock Home Swap, Orchard, and Ribbon. These companies look for homes in good condition and tend to make cash offers closer to market value.

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Bottom line? Rely on a top agent’s expertise to guide your journey

The process of buying or selling a home can be challenging enough — but when trying to do both at the same time, getting it right can seem downright daunting. Especially in today’s competitive and shifting market, having a top real estate agent on your side will be critical to navigating the twists and turns of any home sale contingency scenario.

Whatever path you currently find yourself on, your next step in your adventure should be to consult with a real estate agent in your area who can guide you through the process. All it takes is two minutes and we’ll help match you with the best real estate agents in your area.

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“You make a phone call or answer some questions online, agree to an offer, and then it’s not something you have to worry about anymore,” says Doug Van Soest, owner of SoCal Home Buyers, a house flipping company in Southern California. “Plus, you’ll save money on things like commissions, repairs, and closing costs.”

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HomeLight provides you with a convenient, no-obligation all-cash offer to buy your home, on your timeline. No repairs, no staging, no showings — and close in as little as 10 days.

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However, selling a house for cash also usually means leaving some extra money on the table. Here, we’ll take a closer look at what it means to sell your house for cash, the pros and cons of selling a house for cash, where to request a cash offer, and more.

What does it mean to sell a house for cash?

When you sell a house for cash, it simply means that you sell to a buyer who can purchase the home outright without the use of a mortgage loan. If you agree to an offer of $350,000, your cash buyer will need to show proof that they have that $350,000 at the ready in a bank account or something equivalent.

This calls for working with a niche type of buyer that typically purchases off-market homes — houses that may need repairs or can otherwise be purchased at a discount.

Though some traditional buyers pay cash — it is more rare to see. 78% of recent buyers financed their home purchase, according to the National Association of Realtors. So when listing your home, there’s no guarantee of attracting a buyer willing to pay all cash.

To ensure a cash offer for your home, you’ll need to work with a house-buying company or individual investor with cash reserves.

After completing a few steps to evaluate the home and make a firm offer, the buyer will wire you the money for the full amount of their offer price at closing. You won’t receive a briefcase full of bills in tidy rows like you might see in the movies. The money will be sent over via a secure electronic transfer.

Cash investors typically pay anywhere from 50% to 70% of market value, while iBuyer companies might pay up to 90%, depending on the home and the local market.

Reasons to sell a property for cash

Now that you know what it means to get cash for your home, is selling your house for cash a good idea?

“The value a cash buyer offers is convenience and speed,” says Will Holly, owner of Holly Nance Group, a boutique real estate investment firm in New Jersey. “You’ll avoid the time hurdle involved with back-and-forth negotiations with multiple buyers.”

“With cash, it turns into an easy transaction where the seller doesn’t have to be stressed out. It just takes all that pressure off the seller,” adds Mark Abdel, a top-performing real estate agent in Minneapolis whose specialties include investment properties.

Let’s review some of these benefits more in depth.

1. Faster closing

When you sell a house for cash, you can get money for your home much faster (usually in a week or two compared to several months with a non-cash buyer).

Mortgages are time-consuming. As of 2023, mortgages are taking an average of 43 days to complete from start to close. The lender will also require an appraisal to confirm the amount of funds they’re willing to provide, which can introduce additional delays.

All in all, with a cash offer from a house-buying company, you can often close the sale in as few as seven to 10 days. For sellers who need cash quickly, this is a huge advantage.

2. No repairs or home staging

According to a study by Coldwell Banker, 80% of Americans prefer a move-in ready home to one that needs updates. If your house needs work, it can be more challenging to find a traditional buyer.

When you sell your home for cash to a house-buying company, you can skip the repairs and other preparations typically required when selling on the open market.

Cash-for-homes companies often purchase homes “as is” since they have the capital and expertise to update a house. This removes the repair burden from the seller’s shoulders.

A cash sale also means you won’t need to stage your home or worry about keeping it spotless for weeks or disrupting your schedule for repeated showings.

3. Reduced closing fees

Besides repair and staging costs, a cash offer can cut out additional closing costs. Many house-buying companies will cover closing costs in full for the seller, which can amount to 9% to 10% of the sale price. (The largest cost is typically the agent commission at an average 5% to 6% of the sale.)

These savings can act as a counterbalance to a lower offer price. A HomeLight study found that the average cost to sell a house to a traditional buyer is $31,308, so when weighing whether to sell for cash, you should always factor in the selling costs associated with each option.

4. Smaller holding costs

So long as you own a house, you’re responsible for its holding costs (also known as carrying costs), which include utilities, taxes, insurance, maintenance, and other fees amounting to a decent chunk of change each month.

In a sluggish real estate market, Holly says it could take as long as six months to sell a house. This can cause delays upward of half a year to get the equity out of a home while the owner continues to cover the costs of heating, cooling, mowing the lawn, etc.

A cash offer provides more immediate relief from these ongoing costs. Plus, the longer your home sits on the market, the greater the likelihood of reducing the list price.

5. Peace of mind

Holly also points out the peace of mind and financial certainty that comes with a cash sale, especially for homeowners juggling life challenges. “Any home seller with any complexity to the sale is better off with a cash buyer,” he says.

Those complexities might include a death in the family, bills stacking up, or expensive repairs. A cash offer may come in lower, but it won’t hinge on your home appraising at a certain amount or the financing working out for your buyer. When you need cash now, a drawn-out sale can be a major stressor.

6. Interest rate immunity

As home shoppers face today’s higher interest rates, a buyer with cash in hand eliminates the uncertainty of getting a loan approved. Mortgage interest rates have more than doubled since last year, making it challenging for some prospective buyers to qualify for a home loan.

“A cash buyer is not susceptible to rate hikes,” says Holly. An increase in interest rates or a change in the buyer’s credit history or employment situation could cancel or delay a settlement just days before closing. “Contracts are falling out more often,” Holly adds about the current real estate market.

Without the added risk of a financing contingency, selling to a cash buyer is typically a simple, more certain process.

7. Flexibility

Whether you want to move next week or stay put for a couple of months, a cash sale generally gives you plenty of wiggle room. Sellers who work with a house-buying company often select a move-out date that works best for them.

What’s the process to sell a house for cash?

Working with a cash homebuyer differs from the traditional agent-assisted process in many ways. Below we offer a side-by-side comparison followed by an infographic showing the steps to complete a cash sale.

Cash home sale vs. traditional home sale

Steps to complete a cash home sale

Who buys houses for cash?

You may be asking, “Can I sell my house to a bank?” Well, there might be alternatives.

As a group, cash buyers or house-buying companies are individuals or entities that buy your house outright and usually in as-is condition, without the need for lender financing. In general, selling your home to a cash buyer allows you to skip the home prep, showings, and staging hassles and arrange a more flexible closing timeline to coordinate with the purchase of your next residence. But not all cash buyers have the same business model. It’s a good idea to know who you’re contacting to request a cash offer for your home. To keep it simple, we’ve grouped these buyers into a few broader categories you’re likely to encounter.

Maybe you’re looking to move out of your Orlando home and retire to a gulf-front condo in Sarasota. Or perhaps you need to sell your mission-style Miami property so you can start your new job in Atlanta  — but repairs have gotten away from you.

Whatever the case, you don’t have time or energy to give your tropical landscaping a fresh look or wait for snowbirds to secure their financing.

That’s where Florida We Buy Houses companies come in. To help you select a trustworthy option, we’ve put together a list of reputable house-buying operations that serve locations within the state for anyone interested in exploring this potential solution for selling their home.

Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. Links and mentions of Florida “we buy houses” companies should not be considered an endorsement.

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Working with house-buying companies in Florida

We Buy Houses companies in Florida typically promise quick, all-cash offers and ultra-fast closings, often in as few as seven days. They tend to target distressed properties in need of repairs, and work with sellers who need to move ASAP.

Here’s how the process generally works:

1. You request an offer and provide the company some information about your home. Some companies may make a preliminary offer at this stage, but it’s usually subject to change once they’ve inspected your property.
2. The company completes a walkthrough of your property, usually within 24 to 48 hours.
3. The company makes a firm offer (usually within 24 hours, sometimes on-site after the walkthrough), which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
4. If you accept the offer, you’ll both sign a contract and the closing process will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
5. Closing and getting paid is quick, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

In this post, we’ll explore your options to speed up your home sale process, including cash offers and the benefits of partnering with a top real estate agent. We’ve also sought out selling tips from expert Bay Area real estate agents to give you the insights you need to secure a quick, favorable deal.

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Option 1: Sell your San Francisco home fast for cash

Selling your San Francisco house to a cash buyer allows you to cut through the traditional real estate process, such as inspections and repairs, home prep and showings, and can significantly accelerate your home sale.

HomeLight’s Simple Sale platform connects you with the largest network of cash buyers in the U.S. We use the information you provide about your home plus local neighborhood data to get you a no-obligation all-cash offer, allowing you to close in as little as 10 days.

HomeLight was founded in 2012 and is BBB accredited with an A+ rating. The company has 4.6 stars on Google based on more than 500 user reviews.

Who else will buy your San Francisco house for cash?

You can also find other cash buyers in San Francisco, such as house flippers, iBuyers, and investors, who will buy your house for cash. In these next sections, we’ll provide examples of these businesses, how they operate, and the benefits and drawbacks you can expect.

Texas is the fastest-growing state in the U.S., claiming six spots on the country’s list of top 15 fastest growing cities. In response to growing interest in the state’s mild weather, gorgeous beaches, and lack of state income tax, Texas home values have increased 42% in only five years, from a median price of $230,000 in Q1 2019 to  $326,800 in Q1 2023, according to data from Texas Realtors®.

Buyers with deep pockets see Texas as an attractive investment — particularly the suburban rings around houses for sale in Austin, Dallas, and Houston. Read on to find out more about all-cash home buyers in Texas and how they can facilitate a fast sale.

Need to Sell Your House Fast in Texas?

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Disclaimer: Information in this blog post is meant to be used for educational purposes only, not as a substitute for professional tax or legal advice. If you need help navigating the intricacies of selling your home in the state of Texas or elsewhere, HomeLight always encourages you to reach out to your own independent advisor.

Inside the Texas all cash home buyer market

According to HomeLight’s Summer 2023 Top Agent Insights report, agents estimate that all-cash sales currently account for 29% of homes in their market, and 35% of agents report that cash offers are increasing.

Nick Koren, director at New Western, a national real estate investment company that buys properties in Austin, San Antonio, Dallas, Fort Worth, and Houston, echoes that the cash-buying market has changed dramatically in the Lone Star State over the past couple of years as traditional buyers pony up cash to compete. “In the past, cash buyers would typically be real estate investors or national home-buying companies,” he says. “Owner-occupants have also found sources of financing that provide cash to purchase a home.”

The state remains a hot spot for real estate investors, whether they’re looking for a property that will appreciate or generate solid cash flow. Texas represents the second largest U.S. economy (behind only California) with $2.1 trillion in output. The state does have a higher property tax rate of 1.6%, but this drawback is somewhat offset by the state’s landlord-friendly rules and regulations.

How long does it take to sell to a cash buyer in Texas?

Koren says that without any financing contingencies, the timeline for a cash sale in Texas can be as fast or as slow as the person selling the home wants it to be. When his company buys a home for cash, they can typically close in as few as 7 days.

Hayden Lyon, owner of Cowtown Home Buyers in Fort Worth, Texas, echoes Koren’s estimated timeline for cash sales. “From the time the contract is executed, cash transactions can close in as little as 5 to 7 days, depending on how quickly the title company can draw up the documents and get everything ready for closing,” he says. “The closing timeline is entirely dependent on how quickly the seller wants to sell.”

When your home first hits the market, your listing agent will note that it’s “Active,” as in ready and available for showings — but there’s a lot of ground to cover before your agent lists the status as “Closed,” when you have a done deal and you’re ready to hand over the keys.

Let’s sort through how potential buyers and their agents view statuses such as “real estate pending” vs. “contingent,” so you can present your home accurately and still meet your selling goals.

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Contingent or pending, you’re under contract!

Whether your home is “contingent” or “pending,” you have an interested buyer and a ratified contract — meaning one to which all parties agree.

In a nutshell, that means that all parties accept the contract’s terms, making it legally binding. However, there’s still some wiggle room as far as conditions that must be met. Enter the difference between “contingent” and “pending.”

Contingent: The deal hinges on certain conditions

“Contingent” usually means that you, the seller, have accepted an offer, but the offer is contingent on fulfilling certain criteria. Now, keep in mind that there are approximately 800 MLSs across the United States, all which have slightly varying rules on listing statuses. In lieu of the label “Contingent,” you may also see “Active Contingent” and “Active Under Contract.”

These labels essentially mean that although a listing is under contract with a buyer, a lot still must come together for this deal to close. In the meantime, with a “Contingent” status, the seller is typically allowed to continue showing the home and accept backup offers in the event something goes awry.

So what are the contract stipulations that put a listing into that “Contingent” stage, and how common is it for a property to hang in closing limbo?

Here are 5 common contingencies in real estate contracts:

• Inspection contingency: A buyer and their lender understandably want a home inspection to make sure they’re not investing in a lemon. Buyers also can use the findings of an inspection to negotiate for repairs or credits. According to HomeLight’s Top Agent Insights Report for Summer 2023, agents estimate that buyers only waived the inspection contingency on 20% of contracts.
• Financing contingency: Sometimes called a mortgage contingency, this specifies that the deal hinges on the buyer securing their loan. Considering that 78% of recent buyers financed their home purchase, this contingency is fairly standard.
• Appraisal contingency: To ensure they aren’t lending more than a property’s fair market value, lenders typically require a home appraisal. An appraisal contingency states that a home must appraise for a value that’s equal or higher than the buyer’s offer. According to HomeLight’s Top Agent Insights Report for Summer 2023, agents estimate that buyers only waived the appraisal contingency on 21% of contracts.
• Title contingency: Before closing, a title company pulls public records and other details to guarantee that no one else can stake a claim on the property you’re trying to sell.
• Home sale contingency: This contingency can arise when a buyer must sell their current home before buying yours. According to HomeLight’s Top Agent Insights Report for Summer 2023, agents estimate that 49% of their repeat buyers need to use equity from their existing home to make their next purchase, and that 20% of their contracts in Q2 included a home sale contingency.

Pending: Your deal is almost done

If a property is “pending,” it’s either because there were no contingencies ever inked into the contract, or that all the contingencies have been satisfied, says real estate agent Jim Griffin, a single-family home expert in Johnson City, Tennessee.

In other words, “pending” is the next step after “contingent.” An offer has been accepted, and the sale is expected to close.

What other MLS statuses do agents use?

In addition to “Active,” “Contingent,” and “Pending,” other statuses you may notice include:

• “Coming Soon” – This means there is a valid contract or listing agreement to list the property between the seller and the listing broker or listing agent; the listing is in the MLS but not active on the market just yet, perhaps to give the seller time to finish certain repairs while still marketing the property. Some MLSs limit “coming soon” status to 21 days unless the property is new construction or undergoing major renovations without occupancy.
• “Closed” – Consider these listings sold.
• “Expired” – The listing is not on the market because the listing contract has expired.
• “Canceled” – Another reason the listing is not on the market; the listing contract has been terminated in writing.
• “Withdrawn” – This can indicate a temporary situation where the seller has requested no showings or offers. A valid listing contract exists and the listing remains in the MLS, but it’s not active at the moment.

In addition to these statuses, agents can leave public comments that syndicate to all viewers, or private comments for other agents about anything relevant to the seller’s situation, Griffin says.

Agents also indicate in the MLS what he called “checkbox items,” or coded features, such as if a property has hardwood floors, if it’s a condo, or if it’s a foreclosure or a short sale.

How does a listing status get changed?

Guidelines from the NAR state that any change to a listing must be made in a timely manner. Most MLSs dictate that the representing agent update the status of a listing within a day or two, with a grace period for weekends and holidays.

For Griffin’s market, if a property goes under contract, it generally needs to be marked ‘contingent’ within 24 hours,” he says. “I can do that from my phone.”

Pending vs. contingent: Is one better than the other?

Unless your agent has noted otherwise in the MLS, “contingent” means that as a seller, you’re still open to additional offers. “If a property’s ‘pending,’ you don’t want to go out and look at it as a buyer,” Griffin says. The current parties have satisfied all contingencies, so “there’s no sense in [the seller] taking a backup offer.”

Why have a backup offer on hand? Quite simply, life happens. A real estate contract has anywhere from a 1%-10% chance of falling through. (5% of contracts were terminated in 2023 according to NAR.)

You reduce your stress by working with an agent who is proactive by thinking of “just in case” scenarios, such as issues with the home inspection or a buyer’s financing falling apart because of a change in income.

“If you’re selling your home and the buyer loses their job or something happens that disrupts the process of that transaction, that doesn’t mean that your goals change or that your family’s goals change,” Griffin says. “You can’t help if something happens to that buyer, but if you have a backup offer because your agent was proactive and fought for you, then you have the peace of mind: ‘OK, we don’t have to start all over again.’”

Fielding offers while your property is “contingent” also allows you to remain competitive. Griffin recalled one instance where a sale was contingent upon the buyer selling his current home in Daytona Beach, Florida. Although the Florida house went under contract, something prohibited that buyer from closing the sale, which meant that Griffin’s client in Tennessee couldn’t close.

However, because the Tennessee home was listed as “contingent,” the agent was able to get a backup offer for $15,000 more than what the Florida buyer had offered. “The backup offer came in knowing there was another offer on the table, and they wanted to make their offer very advantageous,” he said.

Understanding the differences between “contingent” and “pending” gives you more insight into why some real estate agents liken transactions to dominoes, one hinging on another to fall into place. Consider each status another step in the process of selling your home and a day when you truly can celebrate your success.

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Knowing whether you qualify and how to qualify as a first-time homebuyer is half the battle, then comes understanding the advantages — like low-money-down or no-money-down loans and grants that often accompany the coveted first-time buyer status.

Buying a home can be overwhelming no matter what, and if it’s your first time buying, there is a lot to know. From how much you need for down payments to credit scores, let’s break it down.

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Why would I want to qualify as a first-time homebuyer?

First things first, there are major advantages of being a first-time buyer, including a number of nationwide programs and incentives geared toward first-time buyers that make homeownership more accessible. For example, both conventional and FHA loans offer first-time buyers the opportunity to purchase a home with only 3% down (conventional) or 3.5% down (FHA).

If you don’t have a lot of cash saved and you are a veteran or looking for a home a bit outside of the city, then you may qualify for no-down payment loans, such as a VA or USDA loan. VA loans also offer even more benefits, like better interest rates and less strident qualifications — but as the name indicates, they are only available to current military members or veterans (or their spouses).

USDA Rural Development loans also allow for 100% financing (or 0% down). Don’t let the name fool you: areas designated for Rural Development loans can be closer to cities than you might expect. One of the key eligibility factors is an area’s population size rather than the amount of rural land surrounding a house. Two big advantages to the USDA loan program are the ability to secure a low fixed interest rate with a very low down payment, even for borrowers with limited income and less-than-stellar credit.

Don’t forget to do your research and ask plenty of questions when talking to lenders and your real estate agent about local and state first-time buyer programs. Many offer down payment grants, no-down-payment mortgages, and low interest rates.

For example, “In my area, the Kentucky Housing Corporation offers several programs, like down payment and closing cost assistance,” says agent Gary Wantland of Bowling Green, Kentucky.

State programs vary, of course, but they provide another exciting opportunity for first-time home buyers to investigate.

When loan environments are riskier (like during an economic recession), it can be harder to get these kinds of loans. You may have a preapproval, but a preapproval does not guarantee formal loan approval.

During the coronavirus pandemic, for example, many lenders imposed overlays (an overlay happens when a lender sets extra qualifications on top of the industry-wide guidelines, making it harder to qualify for a mortgage). For a buyer, overlays could drastically alter your homebuying experience and possibly disqualify you from the loan you thought you could get.

For example, pre-pandemic, an FHA loan could be secured with 3.5% down and a minimum credit score of 580. During the pandemic, lenders could (and did) impose much higher down payment and credit score requirements. Wells Fargo raised the minimum credit score requirement to 680 for all government-backed loans, while JP Morgan Chase requires a minimum score of 700 for purchase loans and a 20% down payment for nearly all new  conventional mortgages.

It is worth noting that the FHA itself did not change any credit score requirements, so it is more important than ever to shop around for a mortgage.

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OK, it’s a good idea. How do I qualify?

If you’ve never purchased a home before, then you qualify as a first-time buyer — but here’s something you might not know: you can be a first-time home buyer more than once. This is one instance in which time is on your side.

“There’s a lot of misperception about what it takes to qualify,” says Alanna McCargo, vice president for housing finance policy at the Urban Institute. “People are confused by income levels, they think they made too much, or they don’t realize that they could have owned a home before to qualify.”  If you haven’t owned a home in the past three years, you can apply for a mortgage as a first-time buyer.

Even if your previous home was foreclosed, you can still qualify as a first-time buyer, but different lenders might ask you to wait longer than the three-year “first-time buyer reset” period. Zach Wain of Wain Capital says, ”Conventional loan programs require a 7 year waiting period from the date of foreclosure until you are allowed to get a new conventional loan.” Wain adds that FHA loans are less strict and enforce a 3 year waiting period and are more beneficial for home buyers that have average to below average credit scores.

It might also be a good idea to go through a pre-underwriting with a lender. Ryan Dibble, COO and former head of mortgage operations at Flyhomes, says “pre-underwriting is the only reliable answer to a big question: How much can I spend on a home? It’s a written commitment from a mortgage lender confirming the loan amount and program you’re qualified for.” This way you can shop for a home with confidence and avoid getting your heart set on a home that’s not quite within your reach.

How big of a down payment do you need to have?

The short answer is, it depends on the program.

Having cash on hand is one of the biggest hurdles to homeownership, but first-time buyers are eligible for some incredible programs that help lower your down payment amount. For a conventional loan, qualifying borrowers may only to put 3% down. Any buyer can find loans backed by the Federal Housing Administration (FHA) through traditional lenders, but they have special features that could be enticing to first-time buyers that have lower credit scores and relatively small savings. You’ll need to put 3.5% down for FHA loans.

There are also a number of down payment programs specifically for first-time buyers. Some are grants and some are loans; some will match your down payment amount up to a certain percentage, while others offer a flat lump sum to anyone who completes the program. They vary by state, and it’s a really good idea to look into which programs are available in your state … otherwise, you could be bypassing free money to supplement your down payment.

But just because you don’t have a lump sum of cash in a savings account, that doesn’t automatically disqualify you from purchasing a home. Wantland wants buyers to know: “there are some programs, like the USDA loan, that allow you to tie closing costs into the loan.” Meaning you can go to your closing with no cash in hand and still leave with your new house keys.

If you’re a veteran, VA-backed purchase loans also don’t require down payments.

Let’s talk about your credit

To put it simply, the better your credit score, the more loan options you will have and better interest rates. A score in the 700s or above is considered “excellent” and will likely secure a loan with the most favorable interest rate. Meeting credit score requirements is a must to qualify for no-down-payment or low-down-payment loans for first-time buyers.

Wain recommends meeting with a mortgage professional before you begin your house hunt. He says, “Home buyers should focus on increasing their credit score so they can get the very best conventional pricing possible, and meeting with a lender early in the process ensures time to explore ways to improve your credit score.

For conventional loans with a 3% down payment, you’ll likely need a 620 FICO score. For an FHA loan with a 3.5% down payment, you’ll likely need a 580 FICO score. There’s no official minimum for a VA loan, but you’ll likely need a FICO score between 580 and 620. And for a USDA loan, you’ll likely need a FICO score of 640.

How high is your income?

The step to qualifying as a first-time homebuyer is assessing your income and understanding how much money you need. You won’t be able to qualify for certain programs (such as USDA loans) if you make more than a certain amount of money. The amount varies by state and county, so don’t forget to investigate those limits or ask your lender.

Plus, certain programs have a certain debt-to-income ratio that you must fall under in order to qualify as a first-time buyer. If you have enough cash for a substantial down payment, maybe some of that cash could be used to pay off another debt, like a car or student loan, to bring your debt-to-income ratio down.

Wantland says, “The bottom line is: the numbers have to work for a buyer to qualify for one of these programs. Debt-to-income is as important as your credit score in a lot of cases.”

It’s also important to be mindful of the monthly expenses that debt-to-income ratio calculation doesn’t include, such as the cost of food, utilities, transportation, and health insurance. So keep these additional obligations in mind as you evaluate how much you’re willing to pay for housing each month.

When loan environments are riskier, you’re going to have to bring more to the table — a higher credit score, a bigger down payment, or lower debt-to-income ratio.  

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What’s the bottom line?

Despite the name, you don’t actually have to be buying your first home to qualify as a first-time buyer. Qualifying as a first-time homebuyer comes with some major advantages, but unless you have top-notch credit and a very low debt-to-income ratio, you won’t be able to qualify for every available program.

Finding a lender with excellent service is key. When shopping for a mortgage as a first-time buyer, most people focus solely on the numbers. But Dibble reminds buyers, “Make sure you choose a lender who is going to guide and advise you throughout the process, like a concierge. If the lender you’re considering is responsive, proactive, and pleasant to work with, that’s a good sign!”

Working with a real estate agent you trust is also critical for first time buyers. Working with an agent who knows the local market inside and out will work to your advantage. It’s not unusual for a lender to call agents, either, looking for buyers who may qualify for new opportunities that have recently become available. Make sure your lines of communication are open and honest — and don’t be afraid to ask questions — and you’ll be even closer to qualifying as a first-time homebuyer and finding your first home.

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In recent years, regulations have tightened, forcing mortgage lenders to disclose these costs in loan estimates. However, many homebuyers still find themselves shocked when they see the final tally, which can add up to as much as 5% of the total loan amount.

Here’s what you need to know about closing costs, and some major fees to watch out for:

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Background on closing costs

Closing costs are one-time fees related to your home purchase that are paid at closing. They typically add up to about 2% to 5% of the full loan amount, depending on your specific circumstances. There are two main types of closing costs:

• Lender and broker fees: Lender and broker fees are charged by most mortgage lenders. Think credit reports, application fees, loan origination fees, and broker fees. These fees are optional, and vary from lender to lender. By law, lender and broker fees, when added up, cannot exceed 3% of the total loan amount.

• Third-party fees: The second group of closing costs is third-party fees. These are charged on nearly all loans. Think unavoidable costs like property taxes, title transfer fees, homeowner’s insurance and the like. Many lenders fail to estimate third-party closing costs in their loan estimates and prequalification calculators because disclosing them isn’t required by law. Unfortunately, that lack of disclosure leaves borrowers surprised by these fees, and confused when they see a lender who actually includes them in an estimate.

The vast majority of lenders hit you with estimated closing costs after you’ve already gone through the lengthy mortgage application process.

Here are 9 fees you can expect to pop up from lenders:

1. Lender and broker fees

The following are some common lender and broker fees. Again, these are optional fees set by your lender. They cannot exceed 3% of the total loan amount when combined.

2. Loan application fee

Many lenders charge a fee just for taking and processing your application. Compared to the cost of a mortgage, this is not a significant expense, but it’s another way the mortgage industry tries to squeeze you.

The cost: Varies, but expect to pay up to $500

3. Loan origination fee

A loan origination fee is one of the biggest closing costs you’ll encounter when taking out a mortgage. Sometimes this fee is identified by one of its other monikers: the underwriting fee, the processing fee or the administrative fee. Whatever its name, this fee is the bread and butter of most mortgage companies. Loan origination means, quite simply, the creation of a mortgage. You might be wondering: why do lenders charge two separate fees for your application and loan origination? Your guess is as good as ours.

The cost: Lenders tend to charge around 1% to 2% of the final loan amount for an origination fee. This can add up to thousands of dollars.

4. Mortgage broker fee

If you work with a mortgage broker, expect to encounter a mortgage broker fee. This fee is usually a percentage of the total loan amount.

The cost: Most brokers charge between 1% and 2% of the total purchase price of the house.

5. Private mortgage insurance

For buyers putting down less than 20% on a home, many lenders require private mortgage insurance (PMI). This insurance protects the lender in case you default on your mortgage payments. PMI tends to be a recurring annual fee, with the first year paid upfront at closing. Once you’ve paid off 20% of the home, PMI usually stops being required. Note that some lenders require you to prepay for PMI in one lump sum. Some lenders also charge application fees for PMI.

The cost: PMI ranges from 0.55% to 2.25% of the home purchase price

Third-party fees

The following are some common third-party fees. You’ll be hard-pressed to avoid them, no matter which lender you work with. However, it’s smart to work with a lender who’s at least upfront about these fees, so you can prepare for them, and won’t find yourself with sticker shock when it’s time to close.

6. Appraisal and home inspection

Before approving your financing, a mortgage lender needs to know how much the property you’re eyeing is actually worth. This is so your loan-to-value ratio can be properly calculated. Enter the appraisal. Most often, a neutral third-party appraisal company is brought in to determine the value of the property. Many lenders also require a home inspection, to make sure your new house is safe and structurally sound.

The cost: Anywhere from $300 to $1000

7. Attorney fees

Some states require that a lawyer be present during closing transactions. Of course, everyone knows attorneys are not cheap, so this can add up quickly.

The cost: Varies widely depending on your location and the number of hours required by the attorney

8. Taxes

Another unexpected cost many new homeowners get hit with? Taxes. Homebuyers typically pay for two months of county and city taxes at closing. You may also have to pay a transfer tax, which is basically the fee for transferring property ownership from one party to another.

The cost: Varies greatly depending on the location, but prepare to pay for two months of county and city taxes, plus various other tax fees

9. Homeowner’s insurance

The majority of lenders require that you purchase homeowners insurance before closing. Many will ask you to prepay for a year of insurance before settling the purchase. This insures the property in case of unforeseen damage.

The cost: Depends on your home’s location and value, not to mention which insurer you choose.

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Other Fees

Unfortunately, the above list is not an exhaustive look at closing costs. There are many other miscellaneous third-party fees that may be associated with closing your mortgage. Most of these fees probably won’t break the bank, but they can sure add up. Other fees you might see on closing day include:

• Title Fees
• Title Insurance
• FHA, VA and USDA Fees
• Pest Inspection
• Flood Determination
• Survey Fee
• Assumption Fee
• Annual Assessments
• HOA Fees
• Escrow Fee

The cost: These fees can vary significantly depending on your circumstances

At the end of the day, the fees charged on your home loan will be specific to you, your property’s location, and the lender and settlement service providers you choose to work with.

Never be afraid to ask your lender for an estimate covering all your closing costs, and be certain to review your Loan Estimate carefully.

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In this article, we explain how much real estate commission you’ll pay to sell your home and how the commission is split between the brokers and the agents. To better answer your questions, we spoke with top-performing agents Rick Ruiz, who sells nearly 50% quicker than the average Las Vegas agent; and Robert Dombrowsky, who works with over 85% more single-family homes than the average Fair Lawn, New Jersey agent.

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How are real estate agents paid?

Real estate agents are licensed professionals who work for a real estate broker or brokerage firm. When an agent gains enough experience they can branch out on their own as a broker. According to the National Association of Realtors (NAR), 87% of agents work as independent contractors, not employees.

Agents are typically paid a commission on their sales, but some are paid a salary plus commission on their sales, and a minority are paid a salary only.

The 5% to 6% commission on a home sale is typically split 50/50 between the listing agent and the buyer’s agent, with 2.5% to 3% going to each. But the agent doesn’t receive the full amount. How much an agent is paid depends on the broker they work for.

According to Glassdoor, the average salary for real estate agents is $123,779 with an estimated $74,726 in the form of bonuses and commission.

However, today’s competitive market has increased the number of new agents, which has increased competitiveness between agents. Dombrowsky believes this has caused a widening salary gap between top sellers and average sellers.

“The agent who has less experience, who works exclusively as a buyer’s agent, or who is doing the business part-time is going to be making less because they’re not always winning the bidding war,” he explains.

Who pays the real estate agent’s commission?

As stated earlier, the seller typically pays the agents’ commission. However, the seller doesn’t pay this directly to the agents. The escrow or settlement company that is overseeing the closing distributes payment, including the commission checks to each broker at closing. The listing agent and the buyer’s agent then receive their commission from their broker.

Here is what the distribution of a 6% commission might look like on a $350,000 home if both agents receive 50% of their commissions and each brokerage takes half of that:

• $350,000 x 6% = $21,000 total commission payment
• $21,000 split 50/50 between listing and buyer brokers = $10,500 paid to each broker
• $10,500 split 50/50 between each broker and each agent = $5,250 paid to each agent

How much commission does a real estate broker receive?

A real estate broker is a real estate agent who has obtained a state real estate brokerage license and has in-depth knowledge of the real estate business. A brokerage manages the transaction, ensures the agent complies with state and local regulations, and assumes liability for the transaction.

The broker’s commission pays for any services or supplies the brokerage provides for its agents. This includes payment for managing the transaction and can include MLS (multiple listing service) input and management, use of proprietary apps, print and online marketing/advertising, lead generation, lockboxes and signage, and access to professional services such as deep cleaning, staging, and photography.

Not all agents use the services offered by their brokerage. Some more experienced agents may perform the services themselves and/or hire them out to other professionals. Ruiz explains:

“Most brokerages have a team that will provide services. But I’ve always treated my book of business and my day-to-day real estate activities like a business. So, I’m not sitting around waiting on my broker to get my clients ahead, I’m going to be the one spearheading it.”

How much commission a brokerage receives depends on its business model. Some brokers receive 50% of their agents’ commissions. Some brokers reduce their commission after a certain dollar amount; others reduce their commission as agents gain experience. Still, others are willing to negotiate the commission split with their agents. Brokers may also receive an added percentage of the sale as a desk fee and/or franchise fee.

Here are the (agent/broker) commission splits for some of the top brokers in the nation:

• Compass: starting at 80/20
• HomeServices of America: starting at 80/20
• RE/MAX: starting at 60/40
• Keller Williams:  70/30
• Century 21: 50/50
• ExP: starting 80/20

According to Glassdoor, the national average salary for real estate brokers is $132,550.

Will I pay a higher commission to a Realtor®?

Although the terms may be used interchangeably, all Realtors are agents but not all agents are Realtors. A Realtor is a licensed real estate agent who is also a member of the National Association of Realtors (NAR). A Realtor may belong to one or more of NAR’s 1,100 associations or boards on a national, state, or local level.

An agent who is also a Realtor adheres to the NAR’s strict code of ethics. When you hire a Realtor, you receive this high level of professionalism at no additional charge, which means you would not pay more commission to a Realtor than you would to a real estate agent.

Will I pay a higher commission to a real estate team?

A real estate team is a group of agents that share the workload and commissions of their real estate transactions. The team is mentored or led by a licensed and experienced team leader.

“A team is almost a company unto itself,” explains Dombrowsky. “Team leaders may have such a huge following and so much business that they are not able to service all of it, and so they take on members to fill certain roles. You can have huge teams where the team lead provides training, leads, and administrative services.”

The advantage of hiring a real estate team is having access to two or more real estate professionals for your home sale at the same commission rate a single agent may charge. Team members may be licensed or unlicensed agents or specialists with expertise in one or more of the services you require, including detailed listing, staging, photography, marketing, and more.

The drawback of hiring a real estate team for your home sale is that you may not be working directly with the agent that you hired.

How can I save money on real estate commission?

Negotiate a lower commission with your listing agent

Many homeowners don’t realize that the commission that they pay to the seller’s agent is negotiable. In fact, in today’s competitive market, many agents come to the seller’s home prepared to negotiate and still provide comprehensive services.

Additionally, during negotiations with the buyer, you may ask the buyer to pay their agent’s commission.

“Today’s consumers are used to lower costs. Advances in technology have added efficiencies and made it easier for agents to provide full value at scale. And competition between agents has also reduced rates,” explains Ruiz. “Because the market value for homes today is a lot higher, there’s a lot more room for the agents to charge a discounted commission and still be compensated handsomely.”

A couple of things to remember when negotiating a lower commission:

• It’s typically not in your best interest to eliminate services when negotiating commission. Most homeowners aren’t skilled enough to perform the expert services a top agent provides.
• The commission you pay is a motivator. If you reduce the agent’s commission too much you may also reduce the agent’s motivation.
• You may not get the best services from an agent who will work for a cut-rate commission.

“At the end of the day, there’s a balance. You have to ask: Do I want that Realtor that’s willing to work for that rock-bottom compensation?” says Ruiz.

Eliminate commission entirely with for sale by owner (FSBO)

One way homeowners choose to save money on broker fees is to sell by owner, known as FSBO. A few things to consider when selling your home yourself:

• You’ll have to do all the legwork yourself. This includes listing and marketing your home. You’ll be in charge of finding the answers to all of your selling questions.
• You’ll still have to hire professionals. This includes a real estate attorney, a titling service, an escrow company, and any other professionals required by law.
• Homes sold FSBO tend to sell for less. Top agents typically sell homes for 16% more than homeowners do on their own.

According to a 2022 NAR report, FSBO sales account for only about 10% of home sales.

Pay a reduced commission to a discount broker

You may be able to save a little on your home sale by listing with a discount brokerage. A discount broker provides basic real estate services – including listing, documentation, and transactional services – for a flat fee or a reduced commission (usually around 1.5%). The services they offer may be limited to listing, documentation, and transactional services. Some brokers offer full services, including the services of an in-person agent.

Keep this in mind when considering a discount brokerage:

• What you save in commission you may lose in the sale. Top agents typically sell homes for 6% to 10% more than lesser-experienced agents. This means your 1.5% savings may actually cost you more in profits than simply paying the higher commission.
• The discount may be less than you think. On top of the fee you pay a discount brokerage, you’ll still pay the buyer’s agent a 2.5% to 3% commission. Additionally, some discount brokerages have hidden or minimum fees and some sell their services a la carte, which can add up fast.
• You could receive limited in-person support. The services you receive may be less robust or personalized than what you’d receive from a top real estate agent. Additionally, if you receive services from an in-person agent, that agent may be busier than a full-commission agent, less motivated to the best price on your sale, and may be less experienced than a top agent.

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Partner with a top agent who can get you the best possible price on your home sale

The commission that you pay to a top-selling agent is well worth the cost for the expertise and guidance you receive on your home sale. Because homes sold by top agents earn up to 10% more than those sold by average agents, the amount you’ll pocket at closing will be well worth the investment.

If the 5% to 6% average commission seems high, keep these things in mind:

• Commission pays for the many professional services required to sell your home.
• Commission motivates your agent to work harder and get a better purchase price on your home.
• Commission is split multiple ways, between the brokers and agents involved.
• You can negotiate the agent’s commission and still receive full services.

If you’re wondering how much you might pay a top real estate agent, we can help. Our commission calculator provides an overview of the current agent commissions in your area so you can get an idea of how much it costs to hire a top real estate agent to sell your home.

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The growing population of Colorado has contributed to the increase in housing costs over the last few years, with the median price of a single-family home rising by almost a third. And while housing prices in hot spots such as Boulder, Aspen, and Vail can easily reach into the millions, there are still affordable places to live if you know where to look.

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Here are 10 of the cheapest places to live in Colorado

Below are ten cities and towns in Colorado that represent some of the cheapest places to live in the state. Please note that the estimated median home values listed will fluctuate with market conditions. Click on the value to see current estimates.

La Junta

Population: 7,322
Median local home value: $129,241
Median household incomes: $49,654

The small community of La Junta is located in southeastern Colorado in the Arkansas River Valley. The name “La Junta” means “the junction” in Spanish and reflects the town’s history as the junction of two major trading routes and the critical role it played in the transport of commercial, agricultural, and ranching commodities for over a hundred years.

Although the mountains of western Colorado are visible on the horizon, La Junta is located in the prairie grasslands. Biking, bird watching, and hiking are popular activities here — as well as exploring museums that highlight the history and heritage of the area. Youth sports are also a big deal, with tournaments happening all summer long and great community support for the high school teams.

Rocky Ford

Population: 3,815
Median local home value: $113,168
Median household incomes: 31,510

Ten miles southeast of La Junta is the town of Rocky Ford, which is famous for the cantaloupe crops that grow plentifully around the community. As one of Colorado’s most famous foods, these cantaloupes are well-loved throughout the state.

Primarily a farming community, the town of Rocky Ford is rural and quiet — ideal for those wanting to live life at a slower pace. There is a small, historic downtown center where residents can grab a bite to eat, go shopping and get a peek at the city’s historic roots.

Lamar

Population: 7,687
Median local home value: $122,041
Median household incomes: $41,124

The quiet, rural community of Lamar is located in southeast Colorado. The town is equally known as one of the best bird-watching spots in the state, as well as the home to one of the Colorado Welcome Centers, which is located in a restored 1907 train depot.

Bird lovers and other outdoor enthusiasts will appreciate the town’s proximity to John Martin Reservoir State Park, Willow Creek Park, and Two Buttes State Wildlife Area. The Two Buttes Trail is part of the Colorado Birding Trail and is a great place to catch a view of snow geese, sandhill cranes, and other migratory birds in the spring and fall.

Sterling

Population: 14,777
Median local home value: $226,177
Median household incomes: $40,956

The city of Sterling may be small by many standards, but it is the largest community in northeastern Colorado — serving as the main shopping district for much of the region. The city also sees visitors because of the famous public art display here, which can be found throughout the downtown area and parks. Created by local sculptor Bradford Rhea, these living tree sculptures take the shape of various characters and creatures, including a mermaid and a herd of elephants.

Like other communities in this part of the state, residents enjoy a quiet, laid-back lifestyle that heavily revolves around the outdoors. Boating, hiking, golf, and hunting are all popular activities here.

Trinidad

Population: 8,329
Median local home value: $181,752
Median household incomes: $38,733

The tiny town of Trinidad is located in southern Colorado along the New Mexico-Colorado border. There is a lot of Colorado history in this little town, as it once served as an important trading outpost on the Santa Fe Trail. Now, that trail is an important recreation area in the area.

Speaking of recreation, Trinidad is increasingly becoming a popular spot for gravel bike enthusiasts, as there are over 1,600 miles of gravel roads in the area. Residents also spend time at Trinidad Lake, which provides ample camping, hiking, fishing, and boating opportunities.

Fort Morgan

Population: 11,597
Median local home value: $302,242
Median household incomes: $48,642

Fort Morgan is an agricultural, ranch community located 80 miles northeast of Denver in the plains of Colorado. Farming and food production are big business here, with a number of food processing facilities calling Fort Morgan home.

In addition to the employment opportunities, residents of Fort Morgan can look forward to lower utility rates than many other communities in Colorado, because all of the utilities are owned and operated by the city. According to the city website, this results in the lowest electric rates for commercial and residential customers in the state and contributes to the affordability of settling in this community.

Cañon City

Population: 17,141
Median local home value: $313,065
Median household incomes: $49,963

Cañon City has earned the distinction of “the Climate Capital of Colorado.” Due to its unique geography (and despite its elevation), Cañon City is typically 10 degrees warmer in the winter months than the surrounding communities.

Located southwest of Colorado Springs in central Colorado, Cañon City sits between the Sangre de Cristo mountains and the eastern plains. Because the city is surrounded by thousands of acres of protected land, residents enjoy beautiful views throughout Cañon City — as well as have access to many outdoor, recreational options. Popular activities include fishing, hiking, biking, rock climbing, off-road riding, and hunting.

One such attraction is the Royal Gorge Bridge and Park which is popular among thrill-seeking residents and tourists alike.

Pueblo

Population: 111,876
Median local home value: $300,301
Median household incomes: $42,902

The city of Pueblo is located in southeastern Colorado. Although significantly smaller than nearby Colorado Springs, Pueblo has many of the amenities that you’d find in larger metro areas, including a four-year university, a symphony orchestra, and a performing arts center. Pueblo is also home to the annual Colorado State Fair and Pueblo Chile & Frijoles Festival.

The winters in Pueblo are much milder than what you’d find in the mountains, with an average winter high of 47 degrees. Yet, it’s only about a two-hour drive to the mountains, where world-class skiing, tubing, and other snowy adventures await.

The city sits on the Arkansas River, with the city riverwalk being a highlight of the downtown area.

Brush

Population: 5,339
Median local home value: $262,997
Median household incomes: $56,078

The small rural community of Brush is located in the plains of northeastern Colorado. Agriculture and ranching are a big part of the local economy here, with the city hosting the largest amateur rodeo in the world each July.

Despite its rural feel and small population, the city offers a range of amenities aimed at enhancing the recreational opportunities of its residents. These include five parks, a nine-hole golf course, a roller skating rink, public swimming pool, and wildlife areas. The city also holds a 4H Junior Fair and multiple 5K run/walks each year.

Cortez

Population: 8,766
Median local home value: $276,996
Median household incomes: $42,245

Located near the famous Four Corners is the historic community of Cortez. This city is steeped in rich Native American history and culture that goes back centuries and can be seen both in the artifacts and archaeological points of interest in town, as well as the residents who call this community home.

The city is located a mere eight miles from Mesa Verde National Park and is also in close proximity to Carpenter Natural Area and Hawkins Preserve where rock climbing, biking, and hiking are popular activities.

Heirloom and heritage corn, squash, and beans are popular crops here, making their way onto restaurant menus and at farmer’s markets throughout the area.

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FAQs: Choosing the right Colorado community

Are there cheap places to live in the mountains of Colorado?

The mountain communities of Fruita, Trinidad, and Cañon City all have affordable housing options that are well below average in the state.

What are a few of the safest cities in Colorado?

According to the latest SafeWise report, the safest cities in Colorado include Brush, Frederick, Milliken, Severance, Gypsum, and Dacono. The city of Lamar also made the top 10 list.

What if I want to live near ski resorts?

World-class skiing comes with sky-high prices. In Aspen, the current median home price is 2.7 million. House prices in Vail are not much cheaper at 1.5 million.

Are there cheap places to live in Colorado that have good school districts?

Generally speaking, the best school districts in Colorado come with an expensive price tag, with Telluride, Aspen, Boulder, and Cherry Creek high on the list. When balancing affordability with school quality, Colorado Springs, Pueblo, Trinidad, and Lamar are good places to start.

What cities in Colorado have the nicest climate?

The cities of Pueblo, Cañon City, and Lamar are known for their mild winters and hot summers. In Lamar, the coldest month of January has an average high of 46 degrees.

Is it a good time to sell my Colorado home?

It is a seller’s market in Colorado with low inventories and a median single-family home price that has risen by almost a third in the last two years. If you’re thinking about selling, we invite you to try our free Best Time to Sell Calculator, which analyzes sales data in your neighborhood and tells you what time of year you’d likely sell the fastest and make the most money.

Are you considering buying or selling in Colorado? Partner with a top agent

Colorado is a real estate hot spot, being ranked the most desirable state to move to in a 2019 survey. Between the high demand and rising prices, you’ll need an experienced real estate agent on your side to help guide you through the process and help you get the best deal possible on your home sale or purchase.

To speak to a top agent in your area, consider HomeLight. And if you’re curious what your Colorado home might be worth now, our Home Value Estimator will give you a ballpark quote in two minutes.

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In this post, we’ll help you determine how much commission you might pay on your California home sale, and what options are available to earn the highest proceeds possible.

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What’s the average real estate commission in California?

According to HomeLight’s Agent Commissions Calculator, you can expect to pay approximately 5%-5.5% in commissions to a full-service agent when selling a home in California, with some variation based on location within the state. On a property worth the current statewide median home sale price of  $791,490, that amounts to between  $39,575 – $43,532 in commission costs.

Here’s a breakdown of how much you might pay in real estate commissions based on local commission data and what a home sells for in six of the largest cities in the Golden State:

Median home prices: California Association of Realtors, March 2023

HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator. You might also be interested in our Net Proceeds Calculator and Home Value Estimator.

Still curious about commission rates in California? Here are the answers to common questions about real estate agent commissions:

Who pays real estate commission fees?

The commission is typically paid by the home seller, and the seller’s agent will then split the commission with the buyer’s agent.

As top San Francisco Bay area agent Carl Medford explains, “Typically, 2.5% goes to the listing broker out of which the listing agent is paid; and, the same thing on the buyer’s side.”

However, “Everything in real estate is negotiable — including commissions,” adds Medford, who was named a HomeLight Top Producer in 2021 and received the Bay East Pinnacle Award for eight years.

Because agent compensation can vary wildly, listing agents include the buyer’s agent commission on the multiple listing service (MLS) description. That way, the commission structure is transparent before the buyer’s agent shows the house.

When is the commission paid?

The real estate commission will automatically be deducted from the sale proceeds at the time of closing. Until then, you won’t owe any money to the real estate agent.

Does the agent get to keep the full commission?

Although the seller pays the entire commission, the listing agent, who is representing the seller in a transaction, doesn’t keep it all. Part of their commission will go toward marketing your property with professional photography, open houses, offline marketing, and more.

“A  huge amount of our commission pays for marketing expenses,” Medford explains. “In our market, we are expected to pay for staging and a full photography package which is pretty expensive.”

The commission is also typically split 50/50 with the buyer’s agent to compensate them for bringing a buyer to the sale and coordinating the buy-side of the transaction. So, around 2.5% to 3% goes to the listing agent, and the other 2.5%-3% goes to the buyer’s agent.

Both the listing agent and the buyer’s agent will then share a percentage of their commission with their sponsoring broker.

These split rates can vary; however, it’s common for the listing agent to give their broker anywhere from 30%-50% of their commission, depending on the agent’s level of experience, their market size, and brokerage agreement.

How is the commission divided between agents?

The commission that’s paid by the seller will typically be split among each agent and the brokerages through which they hang their real estate license. Let’s say you sell your California home for $730,000 with a 6% commission rate. You pay a commission of $43,800, and each agent has a 70/30 split agreement with their brokerage. Here’s how that might look:

• Listing agent: $15,330 (70% of their $21,9000 commission share)
• Listing broker: $6,570 (30% of their $21,900 commission share)
• Buyer’s agent: $15,330 (70% of their $21,900 commission share)
• Buyer’s broker: $6,570 (30% of their $21,900 commission share)

In addition to the 2.5% typically distributed to both the buyer’s and seller’s brokers (which they share with their affiliated agent), “we typically use the transaction coordinator,” says Medford, “who usually receives a $300 to $600 flat fee paid out of the commissions.”

Are California commission rates negotiable?

You can negotiate real estate agent commission rates, but don’t be surprised if California full-service agents hold firm on how much they charge. A Consumer Federation of America report found that only 27% of agents are willing to negotiate the commission.

One reason agents often don’t lower their rate is that it may reduce their ability to negotiate a higher sale price for the seller. An agent’s services often include photography and pricing analysis, so a lower commission could also translate into a smaller marketing budget for your property, an inaccurate list price, fewer home promotions, and a lower likelihood of selling.

Exceptions can occur if you’ve already found a buyer. Let’s say you’re selling your Cape Cod-style cottage to a friend, or have decided to sell to a family member. In that case, the agent would likely be willing to play the role of transaction coordinator and independent go-between for a reduced commission rate.

Overall, commissions in California are negotiable but do your research first. When asking an agent to lower their pay, you’re limiting the pool of agents willing to work with you. And the downsides to working with a low-commission agent can be steep. Without a top California agent in your corner, you could dramatically undersell your home, have a rough selling experience, or fail to sell the home at all.

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What is included in a real estate agent’s commission?

A full-service real estate agent in California will provide a high level of offerings that go toward giving you a great selling experience and boosting exposure to your home.

An agent’s services fall into a few main categories:

Guidance on pre-sale improvements

Agents see a lot of houses in their California markets. They will have an eye for the small but impactful improvements you could make to help it sell for more. The best agents will go above and beyond to help their clients get the job done.

Pricing strategy

An agent will put together a comparative market analysis (CMA) in the form of a thick packet featuring charts, facts, figures, and photographs of houses. The analysis will show you what your home is worth based on comparable sales in the neighborhood, market trends, and local price per square foot. This key tool helps you set a realistic price that can attract offers right off the bat in a fraction of the time it would take a non-professional to determine.

Marketing services

As part of their commission, at a minimum, California agents should offer expert home prep and staging, professional photography, marketing flyers and pamphlets, direct mail, automatic postings of your listing on major home search sites, local advertisements, exclusive previews for other brokers, and open house coordination. Advanced agents may also offer the development of a virtual tour.

Offer management and negotiations

When you receive one or multiple offers, an agent will help you determine the strength of the offer and work with you to proceed with responding to buyers. They’ll advise on whether to accept, reject, or make a counteroffer while putting together offer spreadsheets to identify the best offer in bidding war situations.

If a buyer requests repairs after the inspection, an agent will help you push back where appropriate and advise on when to concede. Should the appraised value be lower than the contract price, an agent can help you determine whether to ask the buyer to make up the difference or if you should lower your price.

Market knowledge and neighborhood expertise

Great California real estate agents know what local buyers seek in homes and which of your home’s attributes to highlight. An agent will skillfully incorporate key features into your home’s listing description and immediately be able to recognize what makes your house or the surrounding area special.

What is a fair real estate commission in California?

As noted above, the average commission rate in most California markets is between 5%-5.5% to hire a full-service real estate agent. This rate should mean you have an agent who is dedicated to selling your home for the best possible price, who is available and communicative, and who is willing to shepherd the transaction from start to finish. If an agent isn’t willing to offer all or the majority of services listed above, you should interview more candidates.

“It totally depends on what kind of services the agent is going to provide,” says Medford.

It’s also important to remember, “When you’re negotiating a commission, you’re always negotiating two sides,” Medford explains.

Ideally, a California buyer’s agent looks to make at least a 2.5% commission. “If you go lower than that, there’s a danger a buyer’s agent might try to avoid showing a listing,” says Medford. “That’s not ethical; but, it does happen.”

On the seller’s side, you may be able to find a listing agent who charges as little as .05% to enter the listing on the MLS — if the seller provides all the data, photos, and manages all other aspects of the sale.

“Sometimes, agents might even charge a flat fee — maybe $2,500 — for listing,” Medford says.  “It’s completely flexible.”

What if my California house doesn’t sell?

Real estate agents only get paid commissions if and when your home sells successfully. Most real estate contracts include an exclusive right to sell, which gives the real estate agent the sole rights to market the property, list the property on the MLS, and receive the commission if the sale closes in a determined time frame. If your house remains on the market beyond the time period outlined in the listing agreement, you are not obligated to pay your agent.

However, keep in mind that your listing agreement may contain a protection clause, also known as a “brokerage protection clause,” “safety clause,” “extension clause,” or “tail provision.” The protection clause states that if a buyer who the listing agent introduced to the property purchases the property after the listing agreement expires, the seller still must pay the agent a commission.

Many California agents’ contracts have an easy-out policy. If the seller decides to terminate the contract before it expires, Medford says, “There may be a stipulation in the listing agreement that the seller pays for the basic marketing expenses such as staging, photography, etc.”

The contract may also have a clause requiring the seller to pay a full commission if the agent’s efforts yielded a buyer under certain conditions.

For example, if Medford’s firm can document its relationship with the buyers who place an offer within 60 days of the listing’s termination, the seller must pay their firm’s commission.

Within three days of the contract’s termination, Medford’s team provides the seller with a comprehensive list of people who actually came through and who might qualify under this arrangement.

How can you avoid paying Realtor fees?

There are two main ways to avoid paying Realtor® fees. You can either sell your California home without an agent’s help or sell it directly to a cash buyer without ever going on the market.

For Sale By Owner

Without a real estate agent, you’re responsible for preparing your home for sale, marketing, negotiating, and navigating legal and financial documents. When selling a house on your own, you’ll need to hire an attorney, at a minimum, to make sure the paperwork is right.

Typically, For Sale By Owner (FSBO) makes the most sense if you already have a buyer. As of 2022, 50% of FSBO sellers knew their buyer.

This indicates that while the FSBO route is rare, making up just 10% of sellers, it’s even more rare to forgo a real estate agent’s help when you don’t already have a buyer lined up and ready to go. In addition, according to a 2022 National Association of Realtors (NAR) report, the median FSBO house sold for $225,000, compared to a median of $345,000 for agent-assisted sales. That’s a significant loss of proceeds in an effort to save 5.25% on commissions.

“We actively go looking for FSBO to explain the value we add,” he says. “We pick up a lot of clients that way.”

Recognizing commission avoidance drives many sellers to FSBO, Medford says, “Our team has created a commission menu, which delineates a tiered level of service and commission.”

Undoubtedly, all NAR-member agents are bound by a code of ethics to provide their clients with competent representation as defined by the terms of their contract. However, full-service commission contracts allow agents to marshal more resources, time, and effort into marketing the home.

“There’s a lot more work and effort that goes into full commission listing,” Medford explains, “than a cut-rate, discounted commission.”

If the seller has a low-percentage commission in mind, Medford explains the services available at that rate versus full-commission packages that include staging, professional photo package and extensive marketing, etc.

While every Realtor is different in what they offer, “Agents typically provide more than a seller can typically do by themselves,” says Medford, who has more than 22 years of experience in real estate.

Sell to a cash buyer

Cash buyers — including iBuyers, investors, and house-buying companies — are individuals or entities that purchase your home outright, without the need for lender financing. These buyers typically make off-market purchases and can provide speed and convenience to sellers.

Just be aware that the price offered by most cash buyers may not match what you could receive on the open market with the help of a top agent.

If you’re interested in a cash sale, you can receive a no-obligation offer through HomeLight’s Simple Sale platform, with no hidden fees or agent commission. Simple Sale connects you to the largest network of cash buyers in the U.S.

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Now you know how California agent commissions work

Sellers pay real estate commissions in exchange for an agent’s expertise and services throughout the sale process. If you’re worried about the cost of the commission, consider that targeted upgrades, stellar marketing, and savvy negotiations can help you maximize your sale price. With a performance-proven California agent to guide you, you also avoid the stress of navigating this complex process without professional oversight.

The key is finding a quality agent who provides the highest amount of value for their commission fee. In fact, our transaction data shows that the top 5% of agents in California sell homes for as much as 10% more than the average agent.

HomeLight can connect you with top California agents with experience tailored to your needs. Whenever you’re ready to get started, HomeLight would be happy to put your commission worries to rest by introducing you to several agents in your area who are well worth it.

California commissions are negotiable. However, “At the end of the day, you really get what you pay for,” Medford concludes. “Those sellers who lowball listing agents to save some money are being penny wise and pound foolish.”

Writer McCoy Worthington contributed to this story.

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You finally made it to closing and successfully sold your house — and you’ve got plenty of ideas for what to do with the money once it’s wired into your bank account. Maybe a little spending, a little saving, perhaps wiping out some debt…

But then a thought occurs to you: This windfall, as great as it is, feels a lot like income. Does that mean it will be taxed like income? Will you need to set aside a chunk of the profits to cover a hefty tax bill?

The good news, in a nutshell: You most likely don’t need to worry. But it’s a good idea to understand how the process works so you can have complete peace of mind going into the sale.

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How does the government tax home sale profits?

Here’s how it works: Your home sale proceeds are considered a “capital gain,” in other words, the profit you made from the sale of a capital asset. The capital asset, in this event, is your home.

To roughly calculate the size of that gain, you’d take the sales price of your property (minus selling expenses), a figure known as your amount realized. From there you’d subtract your adjusted cost basis. In general, your adjusted cost basis is what you originally paid for the home, plus the cost of any major renovations (called capital improvements).

Let’s illustrate with an example:

You bought your home in the year 2000 for: $250,000
You sold it in 2020 for: $450,000 (marking 4.2% yearly appreciation)

Prior to selling, you invested in the following improvements:
Kitchen refresh: ($20,000)
Bathroom remodel: ($30,000)
New hardwood floors: ($2,000)
Landscaping: ($3,000)

Your settlement costs amounted to:
$26,000 in agent commissions
$18,000 in other closing fees

From here, you can calculate your capital gain like so:

$406,000 (sale price – settlement costs)
–
$305,000 (cost basis, i.e.,  the original price + the total cost of capital improvements)

=

A capital gain amounting to $101,000*

Even when factoring in your capital improvements to raise your cost basis, that’s quite a profit! And you’re thinking: I’m going to be taxed out the wa-zoo for this money. And it’s true that in many cases with capital gains yielded from investments such as stocks and bonds, the government wants to take a cut of whatever you earned.

But most homeowners won’t have to fork over capital gains taxes — at least when they sell their main house.

That’s because — under the current tax code (as of this writing) — when a homeowner sells a primary residence, they’re eligible to exclude capital gains recognized on the sale for the first $250,000 if they are single and up to $500,000 if they are married.

There are some eligibility requirements, however, called the “ownership” and “use” tests:

• You can only claim this exemption once every two years.
• You need to own the house for at least two years to qualify.
• You must have lived in the residence for at least two of the previous five years.

Thankfully, those two years don’t have to be consecutive, so you have a little flexibility if you decided to rent out your house for a year or fulfill your dream of spending a year in Paris, for example.

So long as you met these conditions, and regardless of whether you were a single or joint filer, you’d be selling your home tax-free in the example above. Why?

The gain of $101,000 falls beneath that exclusion cap.

For illustrative purposes, let’s say the gain had been $255,000 because you lived in an area with skyrocketing appreciation or owned the home for even longer. If you were a single-filer, you’d need to pay capital gains taxes on the excess $5,000.

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Why are home sale profits taxed so favorably?

It may sound too good to be true. After all, the government makes no qualms about taxing people’s incomes: According to the IRS’ 2020 tax rate tables, taxpayers have to hand over anywhere from 10% to 37% of their taxable income. So why doesn’t the same rule apply to profits from a home sale, which feels a lot like income in itself?

The exemption is a means of making homeownership seem more desirable. Uncle Sam views homeownership as a wealth-builder and stabilizer for the U.S. economy and therefore incentivizes Americans to own real estate with tax breaks. Think about it — if you sold your home only to hand over half the proceeds to the government, would you even invest in a house in the first place?

What if you earn more than the limit?

We asked Robert McGarty, a top Seattle real estate agent, just how often his seller clients end up paying taxes on their home sale. And in his experience (good news!) a vast majority of sellers don’t exceed the exclusion cap.

When they do exceed the cap, it usually happens if the homeowner has been there for a long time, and in most cases they’ve done a lot of improvements to help offset that gain. (Please note that standard home repairs typically do not increase your gain.)

What if you haven’t lived in the home for at least two out of five years?

Even if your profits are less than the maximum exemptable amount, if you haven’t lived in the home as your primary residence for at least two of the past five years, you will be required to pay a capital gains tax on whatever you earn when you sell.

• If you’ve lived in the home for less than a year, you’ll be on the hook for short-term capital gains tax. This is based on your federal income tax rate, depending on whatever bracket you fall into.
• If you’ve lived in the home for more than one year but less than two years, you’ll have to pay long-term capital gains tax. This one isn’t quite as painful: Single filers earning an adjusted gross income (AGI) up to $40,000 and married couples earning up to $80,000 will pay no long-term capital gains tax in 2020. Those earning between $40,000-$441,450 ($80,000-$496,600 for married couples), will pay 15%, and those who earn more than those levels will pay the top capital gains tax rate of 20%.

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Do you have to report your home sale profits to the IRS?

In most cases, a homeowner isn’t required to report the profits from the sale of a home on their tax returns. It is required only in the following scenarios:

• The capital gains exceed those thresholds mentioned earlier ($250,000 for single homeowners and $500,000 if married),
• The homeowner has owned the property for less than two years, or
• The homeowner has claimed a tax exemption for another property in the last two years.

If you fall into any of these three categories, you would have to report the sale on a Schedule D Form 1040 or 1040-SR.

According to IRS Publication 523, you’d also need to report any other income from your home sale related to:

• Selling personal property such as furniture, drapes, lawn equipment or appliances, as part of the property sale
• Sales of expired options
• Forgiven mortgage debt

For some home sales, the real estate closing agent will submit a Form 1099-S to the seller and to the IRS, although the IRS doesn’t require that form if the capital gains are less than the $250,000 or $500,000 cap.

If you do happen to receive a copy of the form but you meet the criteria for the tax exclusion, it’s still not necessary to report the sale on your income tax return. However, make sure to keep all of your paperwork so you’re prepared if the IRS contacts you about the 1099-S.

There are countless details involved in selling a home, including the tax implications. To avoid any unpleasant surprises, speak with your real estate agent or CPA to find out what, if any, taxes you will have to pay on any profits earned.

*This is a simplified calculation and could vary based on other factors. Please review IRS publication 523 for further details.

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If you are selling your home in Florida but also looking to purchase a new one, the timing of both transactions can feel impossible to plan perfectly. If you are relying on the equity in your current home to make a down payment on the new one, it may seem as if your only option is to sell, move out, and find a third location to live while you shop for the new house. But before you resign yourself to months of mayhem, you may consider a bridge loan to streamline the process and reduce stress.

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What is a bridge loan, in simple words?

In real estate, a bridge loan is intended to be a convenient and fast way to buy your new home without waiting for your old home to sell. This short-term financing (also called a swing or bridging loan) helps homeowners during the transition between properties.

A bridge loan is typically more expensive than a traditional mortgage. This is because there is more risk involved for the lender. The bridge lender will loan the buyer the equity they have built in their existing house in order for them to move forward with the purchase of a new home.

How does a bridge loan work in Florida?

A common scenario in real estate where a Florida buyer will need to apply for a bridge loan occurs when they need to purchase their new property before their old home has sold. In this case, they will use the equity from their previous home to cover the down payment and closing costs for their new purchase.

We connected with top-selling real estate agents and MLS experts to track down the answers. Here’s what you need to know about the MLS before you buy or sell a house.

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What is a multiple listing service (MLS)?

The multiple listing service (MLS) is a marketplace of home listings that a group of real estate agents or brokers compile. As Andrea Swetland, a top-selling San Francisco real estate agent with 30 years of home-selling experience, explains, the MLS lays out available listings for both buyer’s agents and seller’s agents — making it easier to pick out the right property for their clients.

“The MLS is a marketplace that enables buyers to look for the listings available on the market, and it allows for sellers, through their agents, to announce listings to the market and to other agents,” she says. “It’s a platform that allows agents to do deals together with separate representation for buyers and sellers.”

Although most agents will refer to “the MLS” as if it’s a single system, there are actually many MLS databases scattered across different regions. Even though a city or region may run its own MLS, real estate agents can often access multiple MLS systems at a time.

“I think every city area has their own way of doing things, but, for example, I belong to the San Francisco Association of Realtors’ MLS. Through them, because of the partnerships that they have with the other MLS systems, I can basically look up properties all the way from Sacramento to, let’s just say, the Monterey area.  Even though I don’t belong to all of the other MLSs, we provide an informational portal search together.”

How does the MLS work for home sellers?

For home sellers, listing your property on the MLS will let you send the details of your home sale to as many potential buyers as possible. But if you think you can just pop onto the MLS on your own and post your listing, you may be disappointed. In order to post on an MLS, you need to be a member of that MLS’s organization.

“You have to be a member of the MLS,” explains Swetland. “You have to be an agent because you’re going to be posting the listing that you’re bringing onto the market.”

Unless you’re a real estate agent yourself, you have a few options if you want to list your home on the MLS:

1. Work with a real estate agent: The easiest way to access the MLS is to hire a real estate agent. Real estate agents generally have access to the MLS. That means they can easily add your property listing to the MLS.
2. Pay for a flat-fee MLS service: For “for sale by owner” (FSBO) sales, home sellers can also pay a fee to have a third-party company list their home on the MLS. These flat-fee MLS listings cost anywhere from around $100–$1,300. Just keep in mind that these services often don’t include the extra perks of a full-service agent.

How does the MLS work for homebuyers?

Like sellers, homebuyers need to hire a buyer’s agent to access the MLS directly. However, homebuyers can access parts of the MLS indirectly through online home sale listing sites. Some popular examples are Zillow, Realtor, and Redfin. These sites automatically pull some information about home listings off of the MLS and publish it.

Still, buyer’s agents can access the full MLS with a complete view of listings. They also often see home listings across multiple MLS systems through partnerships, and they may even hear about listings early through their connections with listing agents.

How does the MLS work for real estate agents?

For real estate agents, the MLS pushes potential home listings out into the open. That means buyer’s agents have a chance to find the best possible options for their clients, and a seller’s agent can show off listings to as many potential buyers as possible.

As Swetland explains, “It should be the one place that all of the agents feed information to so that it can even the playing field, and everybody can access the same information.”

How many MLS systems are there?

As we mentioned earlier, there isn’t just one MLS. So you may still be wondering, “How many MLS systems are there?”

According to the Real Estate Standards Organization (RESO), there are about 560 MLS systems in the United States. The same group says there are close to 40 MLS systems in Canada.

What is an MLS listing?

An MLS listing is the full profile describing the details of a seller’s property. That includes the listing price, along with important property features. Charlotte Ferguson, a real estate agent who ranks in the top 1% of agents in the Atlanta metropolitan area, says anyone who creates an MLS listing should be sure to include professional photos.

“Pictures are worth a million words,” says Ferguson, “so it’s important to hire a professional who will capture the best photos of your home.”

What is an MLS number?

If you’re working with the MLS, you may hear the term “MLS number.” This is a number that’s assigned to each property that’s listed on the market.

“When we bring up a property, and even if you’re on Redfin or Zillow, you’ll see that there is an MLS number,” says Swetland. “The MLS number identifies what association owns the listing and what the specific number is to that property.”

Swetland says that MLS numbers make it easy for real estate agents to search for and track down a specific property.

“If, for example, your client says, ‘Hey, I saw this property, I’d really like to see it, here’s the MLS number,’ but doesn’t send me the address, I can look it up by the MLS number. If they only send me an address, then I go into the MLS, and there’s a search bar to put the address in as well.”

Benefits of using a multiple listing service?

Multiple listing services spark advantages for buyers, sellers, and real estate agents. Here are a few reasons why:

MLS benefits for sellers
The MLS allows home sellers to spread the details about their property to as many potential buyers as possible. That helps them find more bidders and raises their chances of selling for a better price.

Swetland explains: “The MLS provides the marketplace so that sellers have the ability to get the most money they can for the property, and buyers have a chance to get the best deal that they can by looking at the comps (comparable nearby homes), et cetera.”

MLS benefits for buyers
Buyers also benefit because they can see a full marketplace of listings and housing options. In addition to pushing home details front and center, MLS listings also help buyers get a sense of typical pricing and home availability in an area.

MLS benefits for real estate agents
The MLS also gives real estate agents a single source to browse homes and connect sellers with buyers. In turn, both buyer’s agents and listing agents can present their clients with more options.

“It gives agents the ability to find all the listings in one place,” says Swetland, “so the sellers actually know that they’re getting the most money for their property because it’s being advertised to all the agents and buyers that are looking. For the buyer, it gives them the ability to see all of the active listings and make an informed decision rather than just being at the mercy of whatever.”

Unlock all the benefits of the MLS

The MLS is an important tool for both home sellers and homebuyers. It provides a full marketplace of available properties and helps create a more transparent transaction process. But you will need the help of an agent to access the MLS.

Want to find an experienced real estate agent in your area? HomeLight can connect you with a top-performing, trusted agent in your market. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

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A home’s condition can also be a big factor in why you need to sell your Connecticut house quickly. Houses require constant maintenance and can become an enormous burden. Listing and selling a fixer-upper can prove difficult unless you have enough cash for repairs.

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Others want much-needed convenience amid juggling work, parenting, and additional demands while selling a home. Maybe when it comes down to it, you’re not interested in repeated showings or haggling with buyers who expect HGTV move-in-ready homes.

When you need to sell your house fast in Connecticut, your best two options include: 1) seek a cash offer or 2) recruit a top real estate agent. This simple guide will cover each option in detail so you can make an informed decision for your home sale.

Option 1: Sell your Connecticut house fast for cash

Selling your Connecticut house to a cash buyer allows you to cut through the traditional real estate process, such as inspections and repairs, home prep and staging, and can significantly accelerate your home sale.

HomeLight’s Simple Sale platform connects you to the largest network of cash buyers in the U.S., including trusted buyers in Connecticut. We use the information you provide about your home plus local neighborhood data to get you a convenient no-obligation cash offer within a week. If you accept the offer, you can close in as little as 10 days.

HomeLight was founded in 2012 and is BBB accredited with an A+ rating. The company has 4.6 stars on Google based on more than 500 user reviews.

Who else will buy your Connecticut house for cash?

You can also find other cash buyers in Connecticut, such as house flippers, iBuyers, and investors, who will buy a house for cash. Here are examples of these businesses, the types of homes they look to purchase, and their process.

• House flippers: House flippers buy homes with good bones in dire need of repair to remodel and resell as turnkey for a maximum profit. Flippers typically make offers well below market value to account for the cost of needed repairs.
• iBuyers: iBuyers use a proprietary algorithm that compares many data sets, including price history, lot acreage, a home’s square footage, tax valuation history, and other data points to determine the home’s automated valuation model (AVM). While historically offering more than flippers, iBuyers typically charge sellers a fee between 5% to 6%.
• Buy-and-hold investors: Buy-and-hold investors buy houses as long-term investments, often converting properties into rental units to build equity.
• Franchising/homebuying companies: These investors will buy your house “as-is” for cash, and renovate and sell them as turnkey homes for a significant profit. Like flippers, these investors offer sellers below market value.