Real estate investors are groups or individuals that purchase properties for the sole purpose of turning a profit. They typically aren’t looking to live in the home.
Instead, they want to generate a return on their investment.
While this isn’t the traditional route many sellers go down, it can be beneficial in the right circumstances.
One undeniable perk that interests homeowners in selling their properties to investors is the quickness of the transaction.
You can learn more about how to sell your house fast to a real estate investor here. This quick process can take as little as 2 weeks depending on which investor you sell to.
Although selling your house fast sounds extremely enticing, let’s first review what happens when you sell your house to a real estate investor.
Buy Your Home As-Is
Perhaps one of the biggest obstacles to selling a home is making it look appealing to buyers. The average homebuyer usually prefers that a home is ‘turn key’.
They want to move in right away with their kids and pet without having to make repairs, which is completely understandable. Since investors are likely planning on doing renovations on the property themselves, they’ll purchase houses without worrying too much about the condition.
After all, renovating homes is their bread and butter. Of course, every investor has a distinct risk appetite.
Shaun from We Buy Houses in Denver is a professional homebuyer in Colorado. He claimed, “To be competitive against other investors, we have to make our offers that let homeowners sell as-is. If we ask them to do repairs before closing, we’ll likely lose the deal.”
Check out the buying strategy that We Buy Houses in Denver uses here.
Certain investors intend to completely gut the entire home during a renovation. In that case, they definitely wouldn’t ask for repairs to be completed by the seller.
The convenience of selling a house as-is without having to make expensive repairs attracts many homeowners to work with investors.
Cash is King
Real estate investors commonly pay cash for houses. However, not all offers are made equal, even when they are in cash.
Make sure that you read through any contingencies noted in the agreement because signing something with an investor. They can still give themself an ‘out’ through certain verbiage which would allow them to get out of the deal.
If the contract they submitted to you looks good, and the offer is cash, it could make sense to go with the investor.
Dealing with homebuyers that are using a mortgage to purchase a home can work too, but is vulnerable to more complications and things going wrong.
Deals can fall apart because of mortgage approval issues or funding mishaps. When there is a cash offer on the table without any contingencies in the offer, you can count on it being reliable.
Many real estate investors don’t plan to do an inspection before closing either. Their cash offers are flexible and easy. However, they might not always be the highest compared to owner-occupant buyers.
Quick Close
You can expect a speedy sale when selling to a real estate investor. If you’re in a time crunch, this component is crucial. Some homeowners need to sell their houses because of a sudden job change.
Others are going through a divorce. These unexpected life circumstances limit the amount of time certain homeowners have to sell their properties.
By paying in cash, real estate investors can usually close quickly. It’s not uncommon to see a house go to the closing table that was put under contract 2 weeks prior. You can sell your house fast to a real estate investor who knows what they’re doing.
Should You Sell Your Home to an Investor?
Certain situations make selling your house to an investor a solid option. Investors typically pay for houses in cash, which allows the transaction to close quickly.
They are also generally less picky than your average homebuyer. Don’t expect to be required to make many repairs to your home when selling it to an investor. Consider all the benefits before deciding that you want to sell your house to a real estate investor.
