4 Best Ways for Selling a Home in Illinois

The private home sale offers homeowners a chance to move rapidly because the buyers use cash for the purchase.

Cash eliminates the need to wait for your buyers to apply and qualify for a mortgage. There’s no delay with an all-cash purchaser.

You don’t have any risk that the lender’s appraiser won’t establish a home value that matches your sale price.

As an added benefit, a private sale keeps your personal space a mystery to the general public. You won’t have to host tens of looky-loos who want to tour your home during open houses.

Images of all the rooms in your home also won’t be featured on the internet for all the world to see.

Homeowners who sell a property in Illinois privately don’t have to face most of the problems that a sale to the general public brings.

The next segment explores how you find a buyer for a private sale.

What Are Home Buying Companies?

Professional home buyers look for investment properties in Illinois. They are experienced in residential property buying, and they can close quickly.

Some buyers are solo operators; some may be family businesses. Other cash buyers are a collection of investors — or even a hedge fund.

Every Illinois real estate investor has a business plan that focuses on a specific segment of the market.

Some prefer purchasing rental property as an investment for a steady stream of rental income. Other plans involve buying homes, rehabbing them, and then reselling them to others.

As investors have a variety of business plans, there’s a buyer for any type of homes — from single family through small complexes of up to four units.

Investors buy attached and detached houses. They also purchase manufactured and mobile homes. Some even buy vacant land in residential neighborhoods. There are commercial real estate investors, too.

And condition is never an issue. Investors purchase turnkey, move-in ready properties, and total fixers — and in any condition between the two.

Investors have two things in common: they have cash to buy and they can close quickly. There’s no long wait for your investor to apply and qualify for a mortgage to buy.

Some buyers have special needs, and investors have experience working with homeowners who are:

• selling a house to avoid foreclosure
• selling a rental house with tenants
• selling a house after a bankruptcy discharge
• selling a house in poor condition
• selling real estate in probate
• selling a house with property taxes owed
• selling a hoarder’s house
• selling a home to downsize
• selling a property before divorce
• selling a house for a job relocation

Illinois investor-friendly title companies have experience working with all-cash sales, so investors typically use their services in local transactions.

Read more about what to do when selling a house privately. Or, continue reading to learn about the pros and cons of this method.

Pros of Selling to a Home Buying Company

• Cash house buying companies handle transactions fast.

• You’ll avoid the uncertainty that mortgage applicants have when you sell to Illinois cash buying companies who use non-institutional lenders or cash to buy.

• You won’t have any need to prep your house before the home showing. Home buying companies aren’t concerned with cosmetic issues or property staging.

• You’ll avoid all real estate commissions when you elect to skip using agent representation.

• With professional cash home buyers, you don’t pay closing costs to sell a house.

Cons of Selling to a Home Buying Company

Selling a home in Illinois to a home buying company has a possible downside for some homeowners.

• Illinois cash property buyers probably will not make an offer that matches the property value of your home.

But there’s something more that home sellers need to consider when looking at an offer from a home investor. Sellers need to look at the net proceeds rather than just the selling price.

Cash investors typically will pay your closing costs. You also don’t pay agent commissions.

What the investor offers you is basically what you walk away with, unlike the sales price a Realtor brings to you, from which you will need to deduct your closing costs and Realtor commissions.

So when you compare the money you walk away with in both scenarios, you may find an investor’s offer compares with a Realtor-assisted sale better than you thought.

Now that you know how selling your house to an investor works, let’s talk about how to find an ethical professional.

How to Find an Ethical Home Buying Company

Most real estate investors operate as honest businesses. But just like any profession, there are some in the investment field that aren’t reputable.

By vetting your investors before agreeing to sell, you can sort the quality ones from the rest.

The first step in locating an ethical investor is to make a list of potential cash buyers.

Start with the advertisements you receive in the snail mail, list buyers from online ads you’ve seen, note investors seen on media advertisements, and ask your friends and coworkers for suggestions.

Supplement that list of prospects by collecting local investors from an internet search.

Use ”cash buyers,” “we buy houses,” or similar phrases as search terms. Be sure to also include your locality in your search queries.

Once you have a list, it’s vetting time. Look at the individual websites for pages labeled “About Us” or “Our Company.” If you can’t find one, cross that investor off your list.

Ethical investors are transparent about the company and the investor’s identity. That page should give some biographical and business information.

Look for a minimum of three years in the field and a long list of professional memberships in real estate trade groups and local community organizations.

It’s then time to do some deep vetting. Check for any professional legal issues or complaints about the prospects on your list.

The Office of the Illinois Attorney General handles unethical or fraudulent business practices. Check out your prospects with that agency.

The next step is to look for consumer complaints on popular websites like Yelp and Real Estate Bees.

If you’re now thinking, “That’s a lot of work!” you’d be correct. It is work, and it takes time, but there’s a faster way.

We’ve done the heaviest lifting for you. We’ve vetted the investors on our platform for their professionalism, experience, and expertise.

Simply request a cash offer on your house by using our simple online form, and the prescreened local investors will come to you!

You don’t pay anything for the vetting or the offers. You also won’t pay commissions or Illinois closing costs if you decide to accept one of the offers you receive — but there’s never any obligation to sell!

No charges, no fees, no pressure!

Real estate agents are the key participants in our next method of selling a home in Illinois

Who Are Real Estate Agents?

Agents must take formal education classes and pass exams to qualify for a license to work in real estate in Illinois.

They are trained in listing, contracts, marketing, negotiation, due diligence, and also in title, escrow, and closing procedures.

They are your fiduciary, your legal representative, when selling a house in Illinois.

Agents using the title of “Realtor” are members of the Illinois branch of the National Association of Realtors, a trade group that sets high standards for ethical business practices.

When considering using an agent to sell your property, it’s helpful to balance the advantages and disadvantages of that decision.

Pros of Using a Real Estate Agent

• Agents have the training and experience in all aspects involved in selling a property in Illinois. Seasoned agents have handled a variety of challenges involved in the sales process.

• Realtors have an invaluable resource available to them to research prior comparative sales in your neighborhood. This can assist you in setting a price for your property.

• An agent is your fiduciary, and you won’t need to stop your life to handle real estate issues during the day. Your Realtor can take charge as your legal representative.

Cons of Using a Real Estate Agent

• Most sellers find the average Realtor costs to sell a home the major disadvantage to using an agent. Illinois agent commissions run between 5%-6% of the home’s sale price.

• You’ll need to wait while your agent markets your house. It may take weeks to attract a buyer, sometimes months, when your home is an as-is listing.

• Agents market to the general public. Such buyers typically require a mortgage to purchase a home. This adds additional weeks to your sales calendar. There’s also a risk your buyer may not qualify for a loan after the underwriter examines the application and supporting documentation.

The key to a smooth real estate transaction is selecting a qualified professional to represent you and your property. The next segment has some recommendations for your search.

How to Find a Good Real Estate Agent

The gold standard for agents is referrals. An experienced agent typically doesn’t need to advertise their services. They can find clients through their past customers.

Ask your friends, co-workers, and family for their agent recommendations.

Look for agents with a minimum of three years in the trade and knowledge of your specific neighborhood.

Check the consumer temperature for your list of agent prospects by reading comments on places like Yelp, the local branch of the Better Business Bureau (BBB), and Real Estate Bees.

Once you’ve narrowed your list down, invite agents to meet with you for a professional listing sit down. Ask them to create a marketing plan for your property for the interview.

When you find an agent and a plan you like, sign a listing contract and get started on your sale.

If you’re a DIYer, the next sales method might be to your liking.

Representing yourself in your property sale is known as an FSBO or “for sale by owner.” You accept all the duties that a real estate agent would handle in this sales approach.

The Illinois Residential Real Property Disclosure Act requires all homeowners, including FSBO sellers, to complete a written assessment of the home and give that completed form to all prospective buyers.

The disclosure lets the home shopper know about any material defects and health or safety issues associated with your property.

The next job is to set a price for your home. If you’re unsure, you can find out how much your house is worth with the help of an online calculator.

That’s the easy part. You now need to review Illinois and federal real estate laws to make sure you’re meeting the letter of the law during your sale.

You’ll need to review contracts and master the steps involved in escrow and the closing.

Once that’s under your belt, it’s time to find some potential buyers. This might be the most difficult part of the FSBO process.

Ways to Market Your House Yourself

• You’ll need an FSBO sign for your property. It helps potential buyers quickly locate your house, and it may attract a passerby if you’re located on a street with significant foot and vehicle traffic.

• Buyers are attracted by eye candy. Film a video walkthrough of your home and post it on social media sites such as Instagram and YouTube.

• Create a formal flyer for your home. This is a written document that can be given to prospective buyers when they tour your property.

• There are a number of websites to sell your house by owner. Use these to post your home listing to expand your potential buyer base.

Still unsure if you want to handle the sale without any professional assistance? Let’s compare the pros and cons to help you make a decision.

Pros of Marketing Your House Yourself

• You’ll save 2%-3% of the sales price that you would pay to compensate a real estate agent when you represent yourself (you may still pay 2%-3% to the buyer’s agent, however).

• You are the boss of everything involved in the listing and sale. You set your own calendar.

• An agent must work with a number of clients. That’s not true for FSBO sellers. You have only one client to serve — and that’s you and your home.

Cons of Marketing Your House Yourself

• The legal requirements involved in the home selling process can be overwhelming for many FSBO sellers.

• You won’t have any professional resources to assist you during the listing and sales process.

• You may lose potential buyers or fail to get the best price for your property due to your inexperience in real estate sales and marketing. If you make a major mistake during the transaction, you may even end up in court.

• Some FSBO closing costs are negotiable, and you might not receive discounted pricing because you’re unfamiliar with the potential savings or the steps to receive them.

The final approach on our sales tour is one where the property owner buys and then sells in one coordinated transaction.

A dual transaction by a homeowner happens when the owner finds a house, but wants to sell only after they’re positive that sale on their new property will close.

This sale involves selling to a local Illinois iBuyer who will step in to buy the homeowner’s property, and then front their cash equity from the property so they can purchase the new home.

This has advantages for the homeowner, since they don’t need to attach a contingency to the offer on their new house. They also won’t need to wait for a mortgage to be processed.

The sellers would need to agree to wait in a contingency sale. Not all homeowners find that offer acceptable.

A contingency also means that another buyer could step in and steal the home away if they can match the first buyer’s terms. That buyer also may not have anything to sell, making that sale more attractive.

A sale to an iBuyer helps you avoid delays and the need for a contingency sale. It also ensures your new home doesn’t go to another buyer.

The iBuyer purchases your property, you receive the cash equity to buy your new house, and then the iBuyer closes on your property. Simple and fast!

We’ve covered four approaches to how to sell a house in Illinois. The last segment in this article steps you through the sales process.

Before Signing a Purchase Contract

Most sellers dread the prep period before the sale. Homeowners need to make the property turnkey ready, or as close as possible, to attract buyers.

That might mean paint, flooring, window coverings, decluttering, deep cleaning and landscaping. That’s major work in many cases, and sometimes major expenses!

If you sell to an investor, there’s no prep or prep costs. Investors don’t need cosmetic work done. They don’t even need you to repair anything. Just ask for an offer and that’s it.

You’ll then need to complete a property disclosure regardless of the sales method you use.

Our article outlining what happens when you sell a house as is in Illinois provides more detail about the mandatory disclosures.

Marketing the Property

You’ll need a marketing plan when you’re going the traditional sales route. That might include “house for sale” signs, open houses, advertising, and broker previews.

You’ll skip all of that with an investor sale.

Accepting an Offer

When you receive an offer from typical buyers or from investors, it will be accompanied by an earnest money deposit.

Once you accept an offer, that money is deposited into an escrow account for the sale.

A third-party escrow company will hold the funds, take charge of the money transfers, and wrangle all the legal paperwork required for the sale.

While it’s not required under state law, sellers may hire a real estate attorney during the escrow period.

Buyer Due Diligence Period

The due diligence period is the time of major movement. Your buyer will contract for home inspections, title searches, search for a lender, apply for a mortgage, and take out hazard and title insurance.

Investors skip many of these steps, so this period is abbreviated in a cash investor sale.

Federal law requires buyers and sellers to review closing costs before signing the final documents.

You’ll notice you don’t have any commissions or closing costs on your side of the bill when you sell to an investor. Traditional sales, however, tap the seller for both those fees.

Your buyer has the right for a final property walkthrough before the final signatures are collected.

Closing

The last step involves collecting the legal signatures. Your attorney, if you have one, will attend that session.

Your keys are then turned over, and the new deed is notarized and filed. That’s it. Your sale has closed!

We’ve covered how to sell a home in Illinois. The next steps are up to you, but we can assist in your search for professional cash home buyers.

Our partnering professionals have years of experience and a track record of closing quickly, leaving a trail of satisfied sellers.

We’ve vetted the investors on our platform for their expertise and professionalism.

Request cash offers now by filling out a short online form. We’ll then connect you with experienced local investors who have cash and the ability to close quickly.

You don’t pay anything for requesting or receiving the investors’ offers. It’s fast, free, and easy — and there’s absolutely no obligation for you to sell.