A (MLS) multiple listing service is a database system that incorporates real estate agents to present available properties for sale to other agents. The database allows agents to see multiple listings, allowing them to connect homebuyers with the seller.
On the other hand, direct home buyers are companies or individuals who buy houses directly from homeowners and usually pay in cash. Therefore, if you see companies saying that “we buy houses in cash,” they mean they buy houses directly; it simply means that they pay for houses in cash and don’t necessarily require financiers.
Which Process Do Cash Houses Companies Use
Cash house companies use direct buying, which means that these companies will not be listing your house on the MLS system; they will buy the house themselves. These companies or individuals are professional home buyers and not agents, so they don’t list houses for anyone else to buy. In direct buying, you will see them indicating that we buy houses in cash as long as it meets their purchasing criteria.
Once these companies buy your house, they may decide to renovate it and sell it or keep it as a rental house for themselves. The process followed by these companies is straightforward as all they need to know is the house’s location, the rehab cost, and after-rehab value.
Who uses MLS Listings?
These are real estate agents and not the actual buyers, so they list your house on the MLS system hoping that another agent has a buyer who is interested. On average, if you list the house on MLS, you will likely have to wait a few months to close. This is contrary to direct buying companies that only take just a few weeks to close the sale.
Another disadvantage of MLS listing is the agent commission; the agent normally deducts around 3- 6 percent. However, in direct buying, there are no fees or agents’ commissions associated with selling your house, which means you get the net value of your house.
Benefits of ‘We Buy Houses For Cash’ Companies
Companies that buy houses directly are not required to market them, so you will be sure that the deal will close faster since no showings are required. Also, the fact that there are not many competing buyers because it’s not on the market.
And because there are no agents involved in the process, there are no real estate agent’s commissions which could further lower the value of your house.
Summary
A multiple listing service is a database system that incorporates real estate brokers to provide information about the available properties for sale. The database lets a broker see each other’s listings, enabling brokers to connect homebuyers with the seller.
On the other hand, direct buying companies do not list your house; they buy it directly, eliminating all the inconveniences associated with house listing. These companies usually allow you to choose your convenient closing date and can close your house sale in weeks.
