If you’re in the market to sell your home, you may have noticed online ads and roadside signs saying, “We buy all homes in any condition!”
These claims may have set off your internal scam alarm, but the truth is that home investors are actually turning out to be an attractive option for sellers looking to dispose of their properties in as little time as possible.
But if you’re like many home sellers, you may have many questions about what home investors do. You may even have preconceived ideas about how investors work. In this guide, we’ve put together a list of common myths associated with home investors to finally reveal the truth once and for all.
1. They’re a Scam
Many home investors are legitimate businesses that buy homes in cash, make improvements, and sell the property at a profit. That’s right, they’re house flippers.
But like any other group of enterprises, there will always be a minority of unscrupulous individuals looking to make a quick buck.
So, it’s important to do your due diligence. If you’re seriously considering selling your home to an investor, look for referrals from family and friends. If you want to begin your search online, look for companies with a legit website, social media pages, and referrals from local homeowners. The last thing you want to do is trust a shady Facebook page offering to buy any home with spot cash but has less than 20 likes of friends.
2. Fast Closing Times Are Too Good to Be True
Seasoned home sellers know that traditional real estate escrows typically last 30 to 45 days, which gives the buyer time to sort out their mortgage and commission an inspection of the property.
With home investors however, the escrow process can run very quickly. Anywhere between 7 to 10 days is par for the course, which can sound too good to be true, but is not.
3. Home Investors Will Lowball You
A reputable home investor will make an offer that’s fair and reflects the condition of your home. Not only that, they’ll make a lump sum payment in cash. While an investor’s offer may be lower than your expectation, do note that it’s the price based on the state of your home, as-is. If you’re going to work with a real estate agent, you typically have to spend a few thousand dollars on an inspection, repairs, improvements, and staging to get a high price. And even then, there are simply no guarantees you’ll get the price you’re hoping for.
With investors, you get your cash ASAP without having to spend any money of your own.
4. There Are Hidden Fees
On the contrary, there are very few fees because the transaction happens directly between you, the seller, and the buyer, the home investor. There are no middlemen or real estate agents requiring commissions. Your investor may ask you to pay for a home inspection if they determine that your property needs one, but other than that, fees are far lower than what you would get going the traditional route.
Not sure where to start selling your property as-is? Get in touch with Blue Hen Homebuyers to discuss your options. As a property investor, we buy all kinds of homes in any kind of shape. Call our offices today at 910-802-2222 to learn more about how we can help you.