Sell my house to an investor
Biggerequity
In today’s market, more and more people choose to sell their house fast to an investor, or an investment company.
Owning a house or any type of real property is very complex, and every case is different.
Many times homeowners face situations in life that force them to sell their house fast, the reasons vary but they do make sense.
People that lose their job, for instance, understand that their life is going to change drastically. The plans they have made regarding the house they bought and the mortgage they took are irrelevant anymore – they have to make drastic changes according to their new situation.
Homeowners that are about to lose their home to the bank need to sell their home fast! Unless they have a lot of savings or a very reach and kind relative they are going to lose the house for sure, and the last thing they need is foreclosure on their credit record – an investor usually pays cash, is not subject to an appraisal, an inspection, a loan and can pay fast – this way the homeowner will still lose the house, but wouldn’t suffer from a long term credit impact.
To learn more about BiggerEquity, click here!
If you are trying to sell a distressed property, selling traditionally isn’t the best option
Many people forget that after they buy a house, they need to maintain it, and they let their house deteriorate, until one day they realize they have to repair the house because it’s not livable anymore – but they can’t afford the repair.
Selling the house on the market will be north of extremely difficult as conventional buyers usually need a loan – and banks don’t lend money for houses that are not livable. Again, selling to an investor is the right thing to do.
There are many more examples as to why sell to an investor, but the common ground is almost always the same – homeowners that sell their house to investors need to sell their homes – fast.
Here are 5 reasons why you should sell your house to an investor.
It’s Fast!
Perhaps the biggest advantage is the speed at which things happen. When selling a house on the market – prepare yourself mentally for a lengthy process. It usually takes a few months for a potential buyer to submit an offer that is accepted, and even when that happens there are many other things that must be accomplished before the deal close. A cash buyer or an investor however, buy houses in cash and can skip the lengthy process, as it is on his/her interest for things to move fast as well.
No Banks
Banks are hard to deal with when you are the seller. They take their time in qualifying your buyer for a loan. The banks don’t like to make mistakes, and they take more time to qualify the mortgagor nowadays. A motivated seller, who needs to sell fast, simply can’t afford to wait all that time, and can’t take the risk to wait just to hear that the buyer hasn’t approved after all the time spent. The Banks also wants to inspect the property to see exactly what they are lending money for, and if the inspector isn’t happy about certain things, the homeowner needs to repair the defects. The banks want the home to appraise, as they don’t want to lend more than the value of the house if the house didn’t appraise – prepare to lower your selling price or you can forget about striking a deal.
Buyer’s Remorse
In the standard purchase and sale agreement used by the vast majority of realtors, the buyer has a clear advantage over the seller. The process is lengthy and in many cases, buyers feel after a while they haven’t made the best deal, or they could have bought a better house or all sorts of things that make them have second thoughts about buying. We’re all humans after all. In many cases, the buyer can get out of the deal at any stage free and clear, and the biggest loser is the seller who spent a lot of time and got nothing.
Fees and Commissions
Selling the house on the market will require the services of a real estate agent. Real estate agents represent the buyer and the seller. The agent that represents the seller usually charges 3% of the sale price. In return, he will list the house on the market and do all the marketing. The agent that represents the buyer charges 3% of the sale price as well, and he will get a buyer who’s interested in buying. If the seller’s agent is also the person who brought the buyer, then he is going to charge 6% in total. Anyway, you chose to look at it, sellers pay between 5-6% in realtor commissions and roughly 1-1.5% in closing costs. An investor will save the seller 6% right there as the transaction occurs off the market and there are no realtors involved.
Showings & Open Houses
When selling a house, people want to see the inside too, and especially retail buyers who don’t buy houses sight unseen. As a traditional seller, expect to show your house for months until a willing buyer is submitting an offer that turns into a contract. This could take months, it might happen days and evenings, weekdays and weekends, and you must maintain your house clean and in a hospitable manner at all times. Selling to a cash buyer is different as you will not have to go through that and they often buy your house sight unseen.
How to pick a good investor to work with?
Real-Estate has always been and always will be a peoples’ business. Make sure you are doing business with people that you feel comfortable talking to and dealing with.
Ask the right questions!
Many investors will tell you that they’ll “buy” your house for cash but they aren’t actually going to buy it, they’re going to put the property under contract, and try to sell the contract for-profit to a different investor.
This could turn up as insignificant if they find a buyer and as a seller, you wouldn’t even know about it necessarily–if they can’t find a buyer then there are 2 options:
- They will buy your house themselves.
- They will walk out of the deal.
You need to ask the right questions to understand what is going to happen with your house after you sign the contract.
The best thing to do will be to ask for proof of funds so you can sort between them, hence knowing that they CAN buy your house.
Conclusion:
Summarizing is easy when it comes to selling your house to an investor or not.
If you are in a hurry, it’s clearly the better choice.
Your situation is a key factor in taking the decision whether to sell to an investor or traditionally through a real estate agent.
Before you take that decision, examine your options and situation well, and understand where you stand.
We will be happy to assist in any way and we offer a free consultation for every homeowner–our consultation is non-obligating.
Contact us by phone at 866-333-8377
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