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Offering a home with a traditional realty representative isn't so cut-and-dried: Added costs consist of a typical commission of about 6%, and depending on the state, closing expenses that can run from 2% to 5% of the purchase price. Sellers need to spend for repairs, too, and while the home is on the marketplace, they're stuck paying the mortgage and other expenditures.

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For most homeowners, this route is the best way to bring top dollar for their house specifically in today's real estate market. Put simply, there are less homes on the market today, so competitors is high and lots of sellers are generating deals. Most of the times, settling for a lower rate from an investor just does not make sense.

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