I often get asked why people sell their house us instead of listing it?
If you are selling your house chances are you have seen the roadside signs that read, We Buy houses Fast! Or perhaps you’ve even received an offer to purchase your home from a real estate investor. The real estate market has changed dramatically over the last decade and it’s becoming more and more common for a typical home seller to encounter investors. But if you’re like most home sellers, this may be your first experience dealing with investors.
Two Main Option to Sell Your House
People sell their house for many different reasons, some because of good reason and they choose to sell. Other times, not so terrific reasons and they have to sell.
If you need to sell my home in this troubled real estate market, I have two options when trying to figure out how to sell my home: list it on the market myself or through an agent and wait for it to sell; or contact a real estate investment company and sell it to them instead.
Waiting for a house to sell in this troubled real estate market could take up to a year on average, whereas companies that buy houses can move quickly to make an offer and then buy my house fast in just a few weeks – or days.
Real estate investors have brought flexibility into the world of property sale that sellers can really appreciate now more than ever. Home owners no longer need to wait around for months just to sell their houses. Real estate investors are more than willing to buy houses within only a few days saving owners from foreclosure, bankruptcy and many other situations that require selling right away.
Real estate investors have brought flexibility that sellers can appreciate now more than ever
They may be moving to a larger home or downsizing to a smaller one. Or maybe they’re just taking advantage of a job opportunity and must move. There are also reasons like divorce, job loss, getting behind on payments, health problems, or just tired of being a landlord. We also specialize in helping people stop foreclosure so they can save their credit giving them the ability to buy another house in the future. So, here are the advantages and disadvantages of selling your house to an real estate investor.
Pros of Selling to a Real Estate Investor
Flexible Payment Options – Investors may offer various payment methods such as certified funds, cash, pre-scheduled cash payments, or perhaps they may even take over the existing mortgage completely. With multiple options available, sellers may find a solution that suits their needs.
Cash Offers – Quite often investors are willing to pay cash for a home and with the recent tightening of financial restrictions, coupled with the growing number of complaints about low appraisals, having a cash buyer has become even more appealing.
Selling “As Is” – Typically, investors offer to purchase a property “as is,” many times sight unseen. As a seller, that allows you to avoid any costly repairs that would normally be considered your financial responsibility.
Fast Closings – There are investors who can close within 7 days. How is that possible? Because the sale of the property is not reliant on approved financing, appraised values, home inspections, or the like; bypassing all of these steps expedites the process considerably.
Cons When Selling to Real Estate Investors
Investors Do Not Need a License to Buy – This means as the seller, you know nothing about the person/entity offering to buy your home. Some investors are corporations, but some are individuals who just happen to also be real estate agents. This is cause for concern for many sellers because they question the motive behind the purchase; do they want to buy my home to resell it for more?
There are Plenty of Scam Artists Posing as Investors – There’s a risk of fraud in any financial transaction, but it’s especially critical to avoid scams when dealing with your largest asset. To avoid any issues, get the name of the investor and do research online to see who they are, ask for references, look them up with the Better Business Bureau, and ask your listing agent to do some research on your behalf.
Homeowners Will Likely Sell Below Market Value – Investors have their own costs to contend with and you can be assured that those costs will be factored into their offered price. Investors are also aware of the power behind their cash offer and the fact that they are taking a risk by purchasing “as is.” They may be relying on your motivation to get out quickly. Whatever the reason, it is unlikely that an investor will pay market value for a home in its peak condition.
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