A home investor is not the same as your average home buyer. Unlike a traditional buyer who purchases a home with the intent to reside in it for years, an investor purchases a home to use as rental property, to flip after fixing it up, or to resell to another investor for a higher price. Because investors have a different intent with a property, selling to them will be different from selling to a traditional buyer.
Pros of selling to a home investor
1. More flexibility
The selling process can take a long time, which doesn’t always work when there is a family emergency or other situation that requires quick action. Investors are more flexible with closing dates since they are not personally moving into the home. With more flexibility you can work with most investors to determine a closing date that works with your schedule.
2. Less hassle at closing
The typical selling process takes so much time because there are so many steps that need to be taken by you, the seller. From deep cleaning to staging and showings. However, an investor is typically going into the home buying process knowing that they are going to replace and repair many aspects of the home. Because of this you will not need to work as much about repairing and/or prepping your home for sale with the investor.
3. No repairs needed
While the majority of home buyers may be looking for a turnkey property, investors are not nearly as concerned with minor repairs. Typically, investors will have little concern with purchasing your property as-is. Of course the amount of repairs needed will affect the final sale price of your home, they won’t be as much of a deterrent as they would be to a normal home buyer.
1. Lower sale price
If your home is in good condition, an iBuyer may be interested in purchasing it. This route would give you an offer that is closest to your asking price. However, if your home needs some work and you are going to sell to a home flipper, you may get a much lower offer on your home. If the final sale price is more important to you than a quick sale you may want to consider going the traditional sale route.
2. Deceptive investors
As with any other part of the home sale process, if you are going to work with an investor, you must do your research first. While there are many highly-reputable investors to work with, there are also investors that scam sellers. Get several quotes from different investors so that you can determine if the offer price is consistent.
3. The buyer may be a mystery
If you have dreams of driving past the home you are selling and remembering the days when it used to be yours, you may want to consider someone other than an investor to sell to. You most likely will not know who the buyer of your home will be or what the intent is for your home. If you sell to an investor you need to be willing to fully part with your home and the area it is in.
Selling to an investor is perfect for individuals who need a quick sale or have a home that needs serious repairs. An investor may not yield the highest sale price but they will purchase your home quickly with very few hold ups during the closing process. If you are thinking of selling to an investor, contact a real estate agent who can assist you.