When it comes to selling a home, the majority of people work with Realtors to sell their homes simply because that’s the way things have been done for quite some time. Not everyone has a great experience working the traditional route so if you’re tired of relisting or you’re looking to avoid the complications of the process, you could consider selling your home to a real estate investor.
The Process Is Fast – Listing a home with a Realtor can be a time-consuming process. Your home may be marketed through advertising and open houses, with an average listing agreement of 6 months. Once you finally find a prospective buyer, he or she will probably have to qualify for financing, which can create further delay or even cause the deal to fall through. Buyers also often make the sale contingent on your home passing an elaborate inspection – which is not always guaranteed, especially if you have deferred maintenance or an older, out dated home on your hands.
Real Estate Investors are ready to buy with cash and close the deal right away. This can be an advantage, especially if you’re in a situation where you need to sell fast. They will present you with a no-obligation cash offer for your house, usually within 24-48 hours, and in many cases sellers walk away with money in the bank only a few days later.
Investors Buy As-is – If your home is not in good shape, a Realtor may request that you complete a list of repairs before they’re willing to list and promote your home. Investors will never require that of you.
When they purchase your home, they’re already aware of what needs to be fixed. They’ll draw up an offer that reflects what they’ll need to spend in repairs. You’ll never be asked to foot the bill or lift a hammer throughout the entire process.
Investors aren’t bothered by the extent of the damage. Your roof could be caving in or you could be dealing with burst pipes. Water damage, fire damage, and mold damage aren’t an issue when you work with an investor. They’ve seen it all, and they’ll work with contractors to handle the problems.
No Commission Fee or Hidden Fees – Understandably, a real estate agent doesn’t work for free. When you list your home with an agent, you’ll either pay a flat fee or, more commonly, owe a commission based on an agreed-upon percentage of the selling price – usually 5- 6%. This means that if you’re selling a $200,000 home, the agents stand to make $12,000 from the deal. This percentage holds true whether your real estate agent goes to great lengths on your behalf or seems to have little involvement.
So what about the for-sale-by-owner route? While you may be tempted to try and sell your home to an individual buyer on your own, this can be a complicated undertaking. You’d have to perform market research, create and implement a marketing strategy, vet prospective buyers, and draw up a pretty intimidating stack of paperwork. This doesn’t exclude the showings and the negotiations that often times can get a little awkward, especially if you’re not a trained negotiator.
Investors Can Help You With Foreclosure – When your home is in pre-foreclosure, you have a very short time in which you can sell your home to avoid foreclosure from being completed. In most states, that period of time is about 90 days.
Investors always purchase homes in pre-foreclosure, and they’re very familiar with the process. They’ll be able to help you work with your lender to arrange a short sale, and close the deal before the foreclosure period comes to an end. You might not know what to do, but an investor does. They’ll be quick to step up to the plate for you.
Investors Pay in Cash – Realtors can find you people who want to buy your home, but they can’t loan the buyer money. Only a bank can do that. The majority of buyers don’t purchase a home entirely in cash. They need loan approval from a financial institution in order to purchase your home. Sometimes, a buyer will enter the sale process and be denied the loan. You’ll have started all of the work only to find out that the buyer can’t make the purchase after all.
Investors have their own money. They purchase homes in cash, and they’ll never need to be approved for a traditional loan. What they offer you is what you’ll get. Don’t worry about hang ups or complicated escrow processes. An all cash purchase makes things so much easier.