Should You Sell Your Home To A Real Estate Investor?
This isn’t an uncommon question. Most of us are used to buying and selling our homes on MLS with the help of a real estate agent. We make sure the house looks the best it possibly can and hope that someone likes it enough to make an offer on the property.
While selling to an investor doesn’t happen every day it’s more common than most people think. But why do some people reach out to investors instead of real estate agents?
Most of the time, property that appeals more to an investor than a homebuyer simply isn’t in good enough condition to sell on the MLS. Perhaps the owner hasn’t kept up with repairs and maintenance, and it’s usually very outdated. Sometimes, the home needs tens of thousands of dollars’ worth of work in order to be sold to someone who plans to live in it. That’s money the owner typically doesn’t have, and most aren’t wanting to dump money into a house they don’t plan to live in.
Sellers also go to investors when they need to move out of the property quickly. For any number of reasons, they don’t have time to list it through a real estate agent and wait for a homebuyer to obtain financing, do inspections, and get an appraisal.
If you’re a homeowner interested in selling your property to a local investor, below are a few tips to keep in mind:
- Don’t worry about cleaning the property up or doing any repairs. The real estate investor willing to purchase your home will look past any clutter because they aren’t envisioning themselves living in the property. Instead, they’ll be focusing on the “bones” of the property and will be calculating repairs needed, so save yourself the added expense, and expect the property to sell to the investor “as is.”
- Be prepared to close quickly. This is good news if you need to be out from under the property quickly, because an investor can normally close more quickly than a traditional homeowner. In any case, be prepared for a faster process than you may be used to.
- You can decide how many investors you want to meet with and who you want to sell to. It’s simple these days to search online for local real estate investors, and you might even be receiving postcards and various mailers. You can decide who you’d like to have come out to see your property. Some homeowners will go with the highest offer they receive, while others prefer to sell their property to someone they connect with and trust. You do have a voice in the transaction.
- Feel free to ask how they came up with their offer. Real estate investors will typically pay a percentage of the after repaired value (ARV). The exact percentage varies, but it accounts for holding costs and a margin for their profit. They will also deduct necessary repairs from the offer. Keep in mind that most investors are able to secure lower-than-retail pricing for labor and materials, so their cost for repairs might be lower than if you were to rehab it yourself.
- There aren’t emotions involved on the buying side of the deal. Unlike when you sell to another homeowner, most investors won’t be emotionally involved with the property so it can be a clean business transaction. Depending on their business experience, most investors have done this enough to make it as easy as possible for both parties so that you can quickly sell the property and move on. As the seller you may have an emotional tie to the property, so be prepared for the different perspective on the other side of the transaction.
- If they’re able to, let the investors help you prepare to vacate the property. Whether you have lived in the home or inherited it sight unseen, you may not want to deal with everything in the property. Ask if your investor-buyer can clean the property out and donate some of the items to a local charity.
When a motivated seller reaches out to an investor, they’re in a position of need, and it’s an investor’s job to help provide a solution. They analyze the property, offer the best price they’re able to and explain repairs needed on the property. This is a conversation that is meant to help the seller understand the process, as most don’t realize how easy it is to sell to a real estate investor. Ideally, it’s a win for both parties, and the seller is able to move on to the next chapter in their life.
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.