4 Best Ways for Selling a Home in South Dakota

A private sale is an all-cash transaction that moves quickly. As it’s paid with cash, you won’t wait through the traditional delays that a buyer with a mortgage brings.

You also won’t risk that your buyer fails to qualify for a loan, or your home appraisal required by the lender doesn’t match your sale price.

Typical delays caused by a mortgage lender happen because of loan applications, verifications of your buyer’s credentials, home appraisals, and time for an underwriter to review the lending packaging and make a final decision.

As in a private sale there is no mortgage lender involved, you avoid all this waiting.

A private sale also doesn’t require you to open your house to the public for open houses, broker previews, and endless showings when the last thing you want to do is vacate your home so strangers can look through your closets and comment on your decor.

So, just where do you find buyers who can close quickly in all-cash sales? The next segment introduces those buyers.

What Are Home Buying Companies?

There are investment companies that buy investment properties in South Dakota. They may be a sole proprietor, or a group of buyers working as a company.

Your investor may be interested in buying rentals, or they may purchase a home to remodel and sell to others.

Some prefer single-family homes, while others buy any type of property, including condos, duplexes, manufactured homes, and even vacant land.

Professional cash buyers aren’t concerned with cosmetic issues. While the general public may demand homes that are move-in ready, investors are focused on other things, such as square footage and the number of bedrooms and bathrooms.

Real estate investors in South Dakota are not interested in rummaging through your closets, or asking about the age of your carpet.

Even if your home is a complete fixer, you don’t need to do a thing to prepare it for an investor. That’s a major upside to selling a property privately.

Professional home buyers typically work with investment-friendly title companies in South Dakota who have experience in all-cash transactions.

An investor sale may have special benefits for homeowners who are:

• selling a house before it gets foreclosed
• selling a house with tenants in it
• selling a house before bankruptcy
• selling a house in poor condition
• selling a house under probate
• selling a house with taxes owed
• selling a hoarder house
• selling downsize to a smaller home
• selling a house before or after divorce
• selling a house for a job relocation

Let’s now explore the advantages and disadvantages of an investor sale, so you can decide if a cash buyer is your best sales option.

We’ll begin with the benefits of selling your home to a real estate investor.

Pros of Selling to a Home Buying Company

• Selling to an investor is a way to sell your South Dakota house fast.

• When using one of the best cash house buying companies, you won’t need to worry that the deal will fall apart when your buyer has issues with their lender.

• You won’t need to do any home prep. No repairs and even no cleaning.

• There aren’t any Realtor commissions to pay with an investor.

• Cash investors cover your side of the home seller closing costs.

However, there’s a potential downside to an investor sale.

Cons of Selling to a Home Buying Company

• Offers from real estate cash buyers in South Dakota typically don’t match market value.

There are two reasons for that. The first one is obvious. Investors are a business, and if they don’t make some profit, they won’t be in business long.

But the second reason may not be so obvious. Let’s compare an offer you get from a house buying company to a “market value” offer you’d get in a real estate agent-assisted sale.

The price listed on a contract in a sale that involves real estate agents isn’t the cash in your pocket. You must deduct the cost of commissions and closing costs from that figure.

The offer you receive from an investor is the cash you take away — your net from the sale. Your investor pays your closing costs, and when you forego using a Realtor, there aren’t any commissions to deduct.

So, if you want to compare the money from selling to an investor with the one you’ll get by selling with an agent, you should compare your net proceeds and not the selling prices.

When you make a proper comparison, you may find that an investor’s offer is not that bad.

How to Find an Ethical Home Buying Company

Just like every other profession, not everyone in the cash home buying field is honest and reliable.

You can protect yourself and avoid unprofessional investors by doing some basic research about your cash buyer and the firm they represent.

Begin by compiling a list of local investors. You can find cash buyers by asking friends and coworkers if they’ve had any experiences with selling a home using an investor.

You can make a search on the internet by using a few terms such as “we buy houses” or “cash for homes.” You may also see local signs and billboards advertising investors in your area.

Once you’ve collected a list, it’s time to begin your vetting.

Check your investors’ websites. There should be a page that provides biographical information about the investor and the company. Look for a page titled “About Us” or something similar.

If that’s missing, move on to other names on your list. Professional cash buyers are transparent about that information.

The next step is to screen for consumer feedback. Yelp, Real Estate Bees, and the South Dakota branch of the Better Business Bureau may have this public information.

Search for investors with a number of positive comments from home sellers.

The last step is to vet your investors with the state regulatory agencies. While not legally required, your cash buyer may hold a South Dakota real estate license.

You can use the South Dakota Department of Labor and Regulation online search feature for that information.

All this takes time and energy, but there is an easier way. We’ve already done the prescreening for you!

Request a cash offer on your home by completing a short form on our website, and we’ll share that information with a select group of local investors we’ve prescreened for their professionalism and expertise.

There’s no fee and no obligation to accept any offer!

For selling a house in South Dakota traditionally, you hire a real estate agent to manage the sale for you. Let’s see who agents are, what they do, and the pros and cons of hiring one.

Who Are Real Estate Agents?

Mount Rushmore State agents are licensed to assist sellers with listing, marketing, helping to negotiate sales contracts, and oversee the processes that happen after the seller has accepted an offer.

Your agent is your fiduciary who takes an oath to put your interests first during the sale. That means they have certain duties and obligations they must do for you to earn a commission.

Agents using the title of “Realtor” are members of South Dakota Realtors, the state branch of the National Association of Realtors.

Realtors take an oath of professionalism to put your needs above all others in the transaction.

Pros of Using a Real Estate Agent

• Your agent is a trained professional who is able to handle all aspects of your sale and to advise you on the most complex aspects and issues of the sale.

• Realtors have access to the Multiple Listing Service (MLS), a proprietary database that lists prior home sales and current listings. This can assist you in setting an asking price to bring top dollar for your home.

• Your agent is your legal fiduciary. That frees you up to go about your normal day without being on call to show your house, or deal with marketing.

Cons of Using a Real Estate Agent

• The average Realtor costs to sell a home are significant. This is a major downside of using a brokerage.

• The time to locate a buyer can feel like forever, particularly if your home isn’t in turnkey condition. While you are waiting for a buyer, you will need to endure showings and open houses.

• Realtors typically bring home shoppers who need mortgages — with all the delay and headache that accompanies a home loan. You’ll need to wait weeks for a loan to wind through the lending system.

How to Find a Good Real Estate Agent

Referrals are the best way to locate a quality real estate agent. Ask friends, family, and any new neighbors for their recommendations.

You can also research agents by using the Local Boards search feature on the South Dakota Realtors’ website.

Confirm the agents have a license in good standing with the state by checking the South Dakota Real Estate Commission’s Licensee Roster webpage.

Check the consumer feedback for the agents you’re considering. Yelp, Real Estate Bees, and the Better Business Bureau also post public comments for agents.

The last step is the most important. Interview your agents in person at your home. Ask them to do a formal presentation that includes a marketing plan for your specific property.

Interview until you’ve found an agent you like, and sign a listing contract with them.

Homeowners take the lead to sell a property in South Dakota in a “for sale by owner” listing, also known as an FSBO.

The South Dakota Department of Labor and Regulation lists the disclosures you’ll need to complete.

Since in this case you won’t have a Realtor by your side, you have a responsibility to complete the disclosures and make sure prospective buyers receive a copy before writing an offer on your home.

The next thing you’ll need to do is decide on an asking price. An online estimator can assist you in finding the fair market value of your home.

You’ll need to decide on your target audience for your home sale. If you’re focused on selling to investors, there’s nothing to do but contact them for an offer.

If you want to make top dollar by selling to the general public, you’ll need to make your home turnkey-ready for buyers to simply move in without repairing or updating anything.

This might include staging by renting furniture for the showing period. New paint and flooring makes your home look new and inviting for home shoppers.

Marketing requires a lot of time and effort, but we have some suggestions that might work for your home.

Ways to Market Your House Yourself

• “House for sale” signs let potential buyers know that your home is available. Make sure you list several ways to contact you for a showing.

• Video shorts are a good way to show your home’s unique features. These can be posted on popular online websites such as YouTube.

• Printed flyers allow your prospects to take home a list of your property’s amenities.

• Online advertising can quickly spread the word about your home listing. A number of websites to sell your house by owner offer free or low-cost ways to promote your property.

Pros of Marketing Your House Yourself

• The largest portion of the closing costs in South Dakota go to real estate commissions. You’ll avoid listing agent fees when you represent yourself.

• You are the boss of everything related to your sale and closing.

• Unlike real estate agents with numerous clients, you have only your home as your focus.

Cons of Marketing Your House Yourself

• You’ll need to master the legal complexities of home sales, including all the disclosures.

• Your buyer may take legal action if you make an error during the sale — an error you wouldn’t make if you had a real estate agent by your side.

• Some closing costs when selling a home by owner in South Dakota can be negotiated. Unless you have experience doing that, you may miss out on some savings.

• Pricing homes requires complex data and analysis. You may misprice your home and either lose cash, or sit a long time waiting for a buyer to appear when you’ve priced your property too high.

A sale to South Dakota iBuyers is our last sales method.

iBuyers can be helpful to many homeowners when they’ve found a house, but still have their current home to sell.

The process has the iBuyer purchase your home, and then you take that cash equity to buy your new property.

Once that transaction is complete, the iBuyer finalizes the sale of your current house.

The alternative is a contingency offer on your new purchase. Sellers typically aren’t excited about waiting until you sell your home to close the deal.

You may not sell your house quickly — or at all — and that requires them to relist the house and go through all the hassle of marketing.

The terms and price in a contingency sale may not be the same as a cash offer for your new home.

Sellers know cash sales move quickly and don’t risk falling apart when a buyer doesn’t qualify for a mortgage. So, with cash from an iBuyer, you will have advantage over other purchasers.

Those are four most common ways to sell a property in South Dakota. Our last segment walks you through the steps in a typical home sale in the state.

No matter what sales approach you use to sell your home, the steps in the actual transaction remain the same.

Before Signing a Purchase Contract

You’ll need to set an asking price and complete the required property disclosures. These are required under South Dakota law.

Our article, “What Happens When You Sell Your House As Is In South Dakota,” provides additional details about the state and federal disclosures.

The time prior to listing your home for sale can be the most labor-intensive for sellers, depending on your target buyer.

If you’re focused on locating a buyer from the general public and your home needs some upgrades, you may need to paint, replace window coverings or flooring, and do landscaping renovation.

The public likes turnkey properties. Fixers sit for some time in most real estate markets.

If your target buyer is an investor, you won’t need to do anything except complete the disclosures and then make contact and ask for an offer.

Marketing the Property

Marketing works the same way. The general public requires a marketing plan to put buyer eyes on your property. Investors don’t require any marketing or staging. Simply make the request for an offer.

If you’re working as an FSBO, you’ll develop your own plan and execute it. A real estate agent takes charge of all the marketing when you list with a brokerage.

You may advertise, have signs on your property, or hold open houses and broker previews. You’ll have showings of your home to prospective buyers during the time it’s listed with an agent.

Accepting an Offer

You’ll receive written offers directly if you are listing FSBO, or when selling to an investor. If you use an agent, they’ll be the intermediary to collect the proposed contracts and present them to you.

You may have counter offers, sometimes several, before you and your buyer agree on a price and the terms of the sale.

Buyer Due Diligence Period

Your buyer does most of the legwork during the due diligence period. They’ll contract for a home inspection, apply for a mortgage, contract for a title search, and take out title and hazard insurance.

The title and escrow officers will ready all the paperwork required for the sale during this time.

You’ll need to cooperate with the inspectors and appraisers if your buyer is applying for a loan to purchase the home.

A few days prior to signing the closing documents, you’ll review your closing costs and all the fees and charges you’ll pay to finalize the sale.

Disclosing these fees is required under the federal Real Estate Settlement Procedures Act (RESPA).

FSBO sellers and those using a real estate agent will be charged for closing costs. Agent-assisted sellers will also pay listing agent commissions.

If you’re selling to an investor, you won’t see commission or closing costs on your settlement paperwork. Your investor covers those charges for you.

Several days before the closing, your buyer will also take a final inspection walkthrough of the house to ensure things look the same as when your buyer made the offer on the home.

Closing

Your closing can take place in your broker’s office, or in the offices of the title or escrow companies that represent you in the sale.

You may hire an attorney to be present, but it’s not required under South Dakota law.

During the final closing, you’ll sign your final paperwork and turn over the keys to the property. A new deed will be filed at the county register of deeds transferring ownership.

Those are the basic steps in selling a house in South Dakota.

We’ve covered how to sell a home in South Dakota, and the procedures involved in the actual sales transaction.

It’s now time for you to decide on a sales approach and collect the names of real estate agents, iBuyers, and investors.

We can help you in making your list of professional investors. Our partnering cash buyers have the training and the experience — along with a long list of satisfied clients to demonstrate that expertise.

Request cash offers for your home by completing a short form that will help us determine your needs, and we’ll connect you with vetted local professionals.

There’s no fee and there’s never an obligation to accept any of the offers you receive.

Free, easy, and safe!