Once you have decided to sell your home, you begin to notice all the options that are available, such as short sale and real estate investor offers. With all the changes in the current real estate market, so many homeowners have turned to investors as an alternative to selling their homes. Since this probably your first go round with an investor, it is important that you understand the pros and cons of selling to them.
Pros of Selling to Real Estate Investors
Investors have a variety of payment options which include, certified funds, cash, pre-scheduled cash payments, or taking over the current mortgage. Sellers sometimes find it easier to go with the options that an investor can offer.
There are investors who will pay cash, which will be a fantastic option for sellers because of all the stipulations associated with selling a home. Low appraisals of the home can really hinder the selling price. With a cash option available, sellers will not have to worry about this.
Selling “As Is”
The beauty of selling to an investor is, they will buy the home “as is”, which means you will not have to make costly repairs. Often times, they will buy it without even looking at it. This will alleviate the financial burden you would be faced with if placing it on the market.
Selling a home can be a long drawn out process. Closing alone can take 30 to 90 days. An investor can offer a closing in as little as 7 days. The reason for the quick closing is because an investor does not have to wait for finance approval, appraisal value, or home inspection which can all be time consuming.
Cons When Selling to Real Estate Investors
Investors Do Not Need a License to Buy
As a seller, you will not know anything about the buyer because some are corporate investors while others are real estate agents who invest in a home on their own accord. This could be concerning for some sellers, as they will not know the motivation behind them buying the home. There is always that thought that they are buying the home just to turn around and sell it for more. This thought can be somewhat aggravating for sellers.
Faud is always a potential worry for sellers. There are so many scams that it is hard to know who is legit and who is not. A home is a large asset and you want to protect yourself against these potential threats. To avoid these types of problems it is best to get the investor’s name and research it online. Also ask for references and look them up on the Better Business Bureau website.
Selling Below Market Value
Don’t be fooled, there are cost associated with selling to an investor. They will factor those into the offer price. Investors are keen to the fact that cash offers are powerful, and they can also lean on the fact that they are buying the home “as is”. Their thought is, this is enough to motivate you to sell cheap. It is very unlikely that an investor will ever pay full market value for a home.
There are so many options when deciding to sell a home. If you would like to explore a quick option sell and need to go with a reliable buyer, contact me. I have the credentials that will help you feel good about choosing a short sell of your home.