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Offering a home with a conventional property representative isn't so cut-and-dried: Included costs include an average commission of about 6%, and depending on the state, closing expenses that can run from 2% to 5% of the purchase price. Sellers have to pay for repairs, too, and while the home is on the market, they're stuck paying the home loan and other costs.

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For many property owners, this route is the best method to bring leading dollar for their house specifically in today's realty market. Just put, there are less homes on the marketplace today, so competitors is high and many sellers are generating deals. For the most part, going for a lower price from an investor just does not make good sense.

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