If you have a home you’d like to put on the market, perhaps the most popular way to attract buyers is to work with a listing agent, whose job is to represent you and look for potential buyers in the real estate market.
But there’s another way to sell your property, and that’s to sell it to a real estate investor. You may have heard of these companies from the roadside signs that say “We Buy Homes Fast!” You may even have received offers on your home from investors.
While real estate investors aren’t new, many people aren’t familiar with how they work. With that being said, listed below are a few advantages and disadvantages of selling your home to an investor.
Reasons to Sell to a Real Estate Investor
• Flexible Payment Schemes – Real estate investors offer a variety of
payment methods, including straight cash, pre-scheduled cash payments, and
certified funds. Some investors will even assume your entire mortgage. Either
way, investors are usually more willing to adjust to your needs, so don’t be
afraid to negotiate.
• Fast Cash – Indeed, investors are willing to pay in cash immediately after
assessing the value of your home. Given the challenges of low appraisals and
tightening financial restrictions, having a buyer who’s willing to buy your
home in cash can be very appealing.
• Selling Homes in Any Condition – Most real estate investors are willing to
buy property “as-is,” regardless of its condition. As a home seller, this means
you get to avoid any expensive repairs ordinary buyers would expect you to take
care of before selling the property.
• Faster Closings – Unlike the lengthy process of getting your listing agent to
work with a buyer’s agent in closing a sale, selling to an investor has a much
faster closing process, sometimes happening within 7 days. This is because the
sale isn’t dependent on approved financing, appraisals, and home inspections.
Reasons You May Not Want to Sell to a Real Estate Investor
• Investors Don’t Need Licensing – The largely unregulated field of real
estate investment means there are many scam artists posing as investors
“interested” in buying your home. Although there’s always a risk of fraud in
any financial transaction, it’s especially important to be careful when tying
what is arguably the single biggest investment you’ll ever make in your life to
a financial decision.
• Below Market Value Asking Price – While real estate investors are willing to
buy your home as-is, it comes in exchange for an offer that is often below
market value. Investors are also willing to make a cash offer because they know
most buyers are willing to sell their home at a lower value if they can get
cash right away.
If you have a home you’d like to sell right away, find out about Blue Hen Homebuyers. As an investor, we buy any property as-is. Call our offices today at 910-802-2222 to learn more about our services.