If you’re selling your home and an investor walks in offering you all cash, you might think But before you sign that purchase agreement, think it through.
Most of the home buyers are individuals, couples or families looking for a place to live. They might be looking for their “forever” home or a place to raise their young kids, and while they mat they consider their home an investment, but they aren’t what we would call professional investors.
Investors are people or companies that want to purchase your home in order to make a profit. So negotiations will go differently (and hopefully easier) than they would if the buyer was going to live on your property.
The Pros of Selling Your Home to an Investor
As-is purchase. The investor isn’t planning on living in your home so he or she (or the company), doesn’t care if your kitchen has been updated with a vibrant backsplash or if your toilets are new. In fact, many investors look for homes that are old or outdated so they can fix them up and flip them.
Little risk you won’t close for lack of funds. Most investors pay for properties in cash so you won’t have the uncertainty that comes with a buyer applying for a mortgage. Even when a buyer has been pre-approved for a loan, the lender can decide the buyer’s creditworthiness has changed and refuse to issue the funds needed to buy your home.
Before you sign a purchase agreement you should ask the investor for proof of funds. This can come in the form of bank or money market account statements that show cash or liquid assets in an amount that exceeds the purchase price of your home.
Quicker closing. Since most investors purchase with all cash, you can sell your property as soon as your two parties agree on the conditions of sale. The average time it takes sellers to close with an all-cash investor is two weeks. If you’re selling to a buyer who needs a mortgage, it’ll take you approximately 60 days.
Potential for flexible purchase arrangements. If your home is underwater or you’d like to get out of the real estate game altogether but don’t want to move, selling your home to an investor could be the way to go. Some investors will agree to take over your mortgage and some will even rent the house back to you in what’s called a sale-leaseback transaction.
The Cons of Selling Your Home to an Investor
You might not sell your home at true market value. Most investors are looking to buy homes at below-market value. Or at least at a bargain. And because they don’t have to tell you what they’ve planned for your home—like tearing it down to build lucrative apartments— you might not know its true market value.
If an investor owns a parcel of land that’s adjacent to your home, and the investor wants to build a large apartment or commercial project, this investor would theoretically be willing to pay more for your home than a family looking for a place to live. To negotiate successfully you need a real estate agent familiar with selling to investors.
When a buyer offers to purchase your home all-cash and without asking for any of the punch list items a normal buyer would, it could seem too good to be true. And it might be. Before you sign any purchase agreements, you should do your research on the potential buyers and ask a real estate attorney for guidance.
We here at CT Cash Homes are different than any other buyers. After you contact us and give us the property information, we will make you a fair, all-cash offer within 48-hours, and that is not even the best part. We never tell you when to close. YOU get to choose. If you are looking to close quickly, we can wrap up the deal and get you the cash in as little as 7 days. To get started, you just need to give us a bit of information about your house and the situation that you are in. To contact us, simply fill out the form on this page, or give us a call at (860) 249-0950 for a faster response. It is our goal to make your life easier by getting you out from under the property that is causing you problems and stressing you out. We can do this by paying a fair and honest price for your house quickly. So the next time you’re searching google for real estate investor CT, real estate investor near me or sell my house fast, click on CT Cash Homes.