Pros And Cons Of Selling Your Home To A Real Estate Investor

Repost with additions: Original Article On Forbes Sponsored By Zillow By Monte Mohr

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. So, what are the pros and cons of selling to an investor?

Pros of Selling to Real Estate Investors

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.

The Big State Home Buyers difference:

Big State Home Buyers has three unique payment options for our sellers:

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.

The Big State Home Buyers difference:

Big State Home Buyers is ready to buy with cash and close the deal right away. This can be quite the advantage, especially if you’re in a situation where you need to sell fast. We present you with a no-obligation cash offer for your house within 24 hours, and in many cases sellers walk away with money in the bank only a few days later.


Selling “As Is”

Typically, investors offer to purchase a property “as is,” many times sight unseen.  As a seller, thatallows you to avoid any costly repairs that would normally be considered your financial responsibility.

The Big State Home Buyers difference:

Big State Home Buyers will buy your home as-is, in any condition, so you don’t have to spend the time and money on improvements. If repairs are needed, we adjust the purchase price accordingly and take care of getting them done after the sale is complete.

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.

The Big State Home Buyers difference:

We never charge any hidden fees or commissions. Period.

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?

The Big State Home Buyers difference:

We have a whole in house legal team, so you are good here.

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 (we are A+ rated), and ask your listing agent to do some research on your behalf.

The Big State Home Buyers difference:

Many of our direct competitors put people’s houses down by emphasizing how much repair work is required. Sellers usually know that their homes need work and don’t need to be told this repeatedly–as it is quite frankly insulting. Naturally, sellers often feel an emotional attachment to their homes and we respect that.

Beware of the investor that makes the seller feel like they don’t have other options. This is a blaring scam indicator! Yes, of course you have other options. As a seller, you have many choices when selling your home. We just happen to be the easiest and the best choice. Our company’s success is solely dependent on the way we treat our customers. I could tell you all about us, but I would rather you read some testimonials from our satisfied clients.


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.

The Big State Home Buyers difference:

We have a uniquely organized team/ system here where everyone in the office participates in the sale process from the sales agents, to the title processors who work to clear title and gather information required to close quickly. These are tools that most others do not have and it helps us speed up the process and make things more efficient. This allows for the actual offered price of your house to be the best possible price, and overall (time, money, ease-of-sale) is a better option then risking your home as a listing.

Contact us for a free, no-risk quote within 24 hours.

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