A lot of people find that they have to move out of their house quickly, and they start researching selling their house to an investor. You may be wondering the same thing, so here’s our best advice for selling your house to an investor. Just as it would be if you were selling on the open market, you will receive a wide range of offers on your home. It’s really up to your discretion whether an offer is right for you. If you like the offer, it’d be wise to factor in the investor’s reputation to make absolutely sure that you go to closing. Some investors will get your house sold quickly, and may even offer financial guidance or assistance. Others can leave you waiting until the last minute before backing out and leaving you helpless. If you’re working with a small-time investor with an unclear reputation, you’re always going to be taking a gamble. Therefore, sometimes it might be better to take a little less money for your home in exchange for the security of knowing your house is taken care of.
The only real way to hedge your bets against unprofessional investors is to meticulously investigate the reputation and longevity of the company you’re thinking about selling your home to. Look for companies who have successfully navigated good markets and bad and who have an excellent reputation. Full disclosure: that’s us. But there are other investors like us who do an excellent job too.
Now that we’ve laid out how to best judge offers that come your way, here are some positives and negatives to think about if you’re considering selling to an investor.
Pros of Selling A Home To A Real Estate Investor
You Can Sell “As-Is.
Let’s say you live in Houston, and you get offered a job at Procter and Gamble in Cincinnati. They tell you you have to start next month. That means you’re not going to have time to repaint the rooms and replace the dishwasher, and all the other demands a realtor is going to make of you. With an investor, you can get paid in a couple weeks and be out of the house before you know it. That’s convenient.
Payment Methods That Work For You
Selling to an investor can open up a whole range of different ways to receive payments for your home. Cash, pre-scheduled cash payments, or assumption of your existing mortgage payments, whatever option works for you can almost always be arranged. A company like us will be able to pay cash at closing in full.
Above all else, the most compelling reason to sell to a home investor is the need to sell quickly. There are so many situations, such as being behind on mortgage payments, when time really is money and every month you sit with an unsold home is thousands of dollars lost. There are investors who can close in under a week, and this means you can move out quickly and move on with your life.
Cons of Selling A Home To A Real Estate Investor
Like we said before, this industry is notoriously shady, and it can be really hard to find a trustworthy investor to help you. There’s very little regulation; you don’t need a license or any practical training to become a real estate investor. So when you’re in negotiations with an investor, look them up online to see what you can find. See if they have a profile with the BBB. There’s no right answer, you just need to rely on your own judgement.
Selling Below Market Value
There’s no way around it: If you sell to an investor, you will get less than market value for your home. It’s a give and take: you are able to sell your home quickly and simply, but in exchange you don’t get compensated for the full value of your home. If you factor in the time saved, the realtor fees you didn’t pay, and the repairs you didn’t make, selling with an investor can make perfect business sense. Just make sure that before you make such a monumental decision as selling your home, that you do all the research you can and ask the people you trust to help you with this decision.