4 Tips for Selling to a Real Estate Investor
If you are looking to sell your house fast for cash, your best bet will be to entertain offers from real estate investors. Whether you are in a state of financial distress, have to make a quick move or just sitting on a property you no longer want or need, selling to a real estate investor may be your ideal solution.
On the positive side, selling to a real estate investor will definitely simplify and speed up the process. Cash sales are completed must faster than traditional real estate sales. Plus, you won’t have to take the time (or spend the money) to hire a real estate agent, make repairs and market the property. A cash sale can be completed within weeks rather than months. Closing costs are minimal, and often covered by the cash investor as part of the sales agreement.
On the negative side, you won’t get as much money on your home as you would in a traditional open market. And unfortunately, there are some shady types who give the reputable real estate investors a bad name. Before selling to a real estate investor, you should do your research and make smarter decisions when it comes time to sell your house. Here are some tips we recommend:
1. Work with a Reputable Buyer
There are a lot of cash home buyers out there. You’ve probably seen the hand-written signs on the side of the street or you may have already gotten calls or emails. Before you commit to selling your house to anyone, it’s a good idea to shop around and also find out as much as you can about them. If a deal sounds too good to be true, it might be. Make sure you are dealing with someone who is trustworthy. Look into real estate licenses and other certifications. Don’t just sell to anyone who offers you a wad of cash for your house!
2. Set Your Expectations Accordingly
Remember that a cash home buyer is looking to turn around and make money on your house. They plan to renovate and resell it for higher value, or they plan to hold onto it for rental income and appreciation. They are running a business and not a charity, so they are going to make an offer that makes financial sense based on their budget and property analytics. They are not necessarily working with your best interests in mind. However, a trustworthy buyer will take the time to listen to you and present different solutions that benefit both sides.
3. Understand Your Selling Options
Selling to a real estate investor makes sense in certain scenarios. It can be an option to avoid foreclosure or get rid of an unwanted property. It is a much faster process and you won’t have to deal with real estate agents or a parade of buyers and looky-loos walking through your home. However, if you do have the time to sell on the open market, you may want to consider it for a higher sales price and more profit. There are times when a cash sale at a lower price ends up netting more profit than a traditional sale because the seller is saving on major repair costs, closing costs and real estate commissions. The best option(s) really depend on many factors, so explore different solutions and run the numbers before deciding which is right for you.
4. Get an Offer Upfront
If the investor is taking too long to get you an offer or it feels like they are stringing you along in any way, they are probably not to be trusted. Make sure to get a clear offer with well-defined contractual terms. Most reputable cash buyers will be able to give you a fair offer within days. At PropertyLark, we can provide a cash offer within 24 hours of contacting us. We can also help you explore all your selling or financing options. We work with you to understand your situation and find the solution that works best.
If you are thinking about selling or in a situation where you need to sell your house fast, consider selling to a real estate investor. PropertyLark is a reputable company with years of experience in property buying. We know that no two sellers are the same and that’s why we work with our buyers and our sellers to find the most agreeable solutions. To get started and to receive your fair cash offer within 24 hours, please fill out the contact form on any page of our website.