There is a lot of mystery and misinformation surrounding home investors, and some of it isn’t very flattering. This often makes people who should go to an investor think twice about doing so.
Often, people who believe the following myths will try to put themselves through the traditional home selling process when there are pressing reasons to avoid doing so. That’s what makes these myths so destructive.
Let’s set the record straight and provide a clearer picture of what it means to work with an experienced home investor.
Myth #1: Investors Only Buy Unappealing Houses
Home investors buy all kinds of houses.
We do buy houses in need of heavy renovation and repair when homeowners don’t have can’t afford said repairs. And yes, one of the ways we make money is indeed by “fixing and flipping” homes that are in bad shape.
But we buy absolutely gorgeous homes too! Some of the beautiful homes we buy come from people who inherited them but have no use for them–they already have homes of their own, and haven’t sunk any money into the home. They don’t want to pay property taxes or upkeep, and it makes sense to sell the home instead.
We’ve also bought homes from landlords who are sick of headaches that come from managing tenants, from divorcees who have been ordered by courts to sell their home as quickly as possible, and from people who are a behind on their mortgage and who need to preserve their credit as much as possible in a short sale. We’ve bought gorgeous homes that have liens–and houses with liens that aren’t the fault of the seller.
Home investors are a good choice if you need to sell fast, if the house is in bad shape, or if you just don’t have the time and energy it takes to stage and show the home.
If you’ve got a gorgeous home and you’ve got all the time in the world then yes, even we’d probably tell you to sell the home the traditional way. But please understand that whatever the condition of the home, sellers we work with are usually very happy to take advantage of the solutions we can offer to them.
Myth #2: All investors are out to lowball you.
Reputable investors present fair cash offers for each home they buy.
However, the offer is indeed impacted by our position as investors.
We don’t want to buy the house for the same amount you’d sell it to a resident-owner, since we’re not going to live in the house. We’re going to sell it for profit.
And if we need to make repairs on the home, then we’ll factor that into the offer…just as a resident-owner would.
In general, most of our offers are somewhere between 70% to 80% of what a resident-owner would pay for the same home. Many of the people we work with find this fair considering they’ll be able to sell the home quickly, and walk away with a check…quickly. Again, many of our sellers aren’t really concerned with extracting the maximum value of the home because it would actually prove detrimental for them to do so.
Remember that in some cases the home is not likely to sell for the asking price on the traditional market–or at all. At least…not in as-is condition.
Reputable home investors stay on top of the market and factor market conditions into our offers. And in some cases, homeowners still make a profit on their homes, even though we aren’t paying “market value.”
Myth #3: Selling real estate has to take a really long time. If it doesn’t, something is wrong.
Banks take a really long time. When you see people closing in 30-60 days after making the offer it’s usually because they’re buying the home with a loan.
Cash changes everything. Even the rare resident-owner who can pay in cash could easily close on a home in 7-10 days. Anybody could close in 3 days if title companies didn’t need to do title searches to make sure you have the legal right to sell the home in the first place.
A fast sale means one thing: it’s a cash sale. That’s it. And there’s nothing shady about cash.
Myth #4: All investors are scam artists.
You’ve heard horror stories, and we forgive you for being leery. There are certainly folks who put out “We buy homes for cash” signs and then find ways to scam you. Usually, they do this by asking for some sort of “processing” or “audit” fee. They’re out to collect these fees, and when they have them, they just disappear.
So. Anyone who asks you for cash is bad news. Real investors pay cash. Anyone who hasn’t been around for too long is also at least a little suspect.
But if you’re dealing with investors who have been around for a decade or more, and who have dozens of positive reviews, and who don’t ask you for money and who make legitimate, legal offers on homes…then you’re probably fine.
Myth #5: Investors don’t care about sellers.
Well…some don’t. As we tell people again and again, anyone can call themselves “investors.”
But…we do. We encourage people to call our offices and ask our advice whether they end up selling to us or not. We’re here to help homeowners with specific, legitimate problems. It’s our passion. The money is a nice side effect; it’s the thing that keeps in business so we can continue to offer our aid.
Again, if we think you should work with a traditional realtor, we’ll tell you so. We don’t want your home if this sale is not going to be a wonderful thing for you…we’re here to relieve burdens, not to create them.
Want to find out more? Call us and see if you can benefit from selling to Big State Home Buyers. But remember, we’re not going to pressure you…because we do care.