Published March 5, 2021
Do You Sell to a Builder or Go to the Open Market?
When preparing to sell your home, it's important to know that you have options: selling to a builder off-market or listing and selling your home on the open market.
You may have been contacted by builders who are very interested in buying your property off-market without it ever being listed on the open market. Whether you decide to sell to a builder or on the open market, you need representation to help you evaluate the options and negotiate the highest price for your property. The following charts highlight some of the advantages and disadvantages of selling to a builder versus selling on the open market.
Selling to a Builder
| Advantages | Disadvantages |
| Builders will buy properties as-is; you will not need to spend money preparing for sale. Builders may not care about home defects. | Many builders negotiate long closings, so it may take 3-6 months longer to close on your property. |
| They may be willing to release some earnest money after the feasibility period is over. | Builders may have a lengthy feasibility period and decide not to buy your property at the end of it. |
| You may be able to stay in your home longer, meaning you will have more time to pack. | They typically do not consider the sentimental value; your home will be torn down and replaced. |
| Depending on the ease of building, lot size, shape, and slope, builders may be willing to pay top dollar for your property. | Builders typically have a clause in the contract that they may assign the property to others so you may lose control on who ends up buying your home. |
Listing and Selling on the Open Market
| Advantages | Disadvantages |
| Your property will get the most exposure and potentially sell for a higher price. | It will require more preparation; health and safety issues will have to be addressed and disclosed. |
| You will know what the market thinks your home is worth. | Your seller disclosure form will most likely be evaluated more thoroughly. |
| Your agent will help you present and market the home. | Your will need to pack up all of your personal belongings prior to the listing. |
| If your home has sentimental value, you may be able to sell to someone who will love it as much as you have. | You will have to keep the home clean and be comfortable with multiple parties touring your property while it is on the market. |
We have your best interest in mind. We want to represent you to ensure you are getting the deal that is right for you. If you are thinking about selling your home, contact us for a free market analysis and to discuss your personal situation.
