Ways to Sell Your House to a Real Estate Investor

Real estate investor buying house from seller

Though we specialize mostly in cash offers at PropertyLark, that is not the only way our real estate investment group buys houses. We understand that every homeowner’s situation is unique and a cash sale doesn’t always make the most sense. There are many reasons why you might need to sell your house, and there are many methods in which you can sell it to an investor.

We’ve already talked a lot on the PropertyLark Blog about the differences between selling your house on the open market and selling it to a cash investor like us. Now, we can look at some other ways that an investor may choose to buy your property, especially in the cases where you are in financial distress and/or upside-down on your mortgage. You may have more options than you realize.

Cash Sale

First, is the cash sale. It’s just as it sounds. The buyer is already fully financed and buys your house for cash. The advantages of this is a quick and easy closing process, and then a clean title exchange through the escrow company. Any money you owe on the house is taken out of total and the remaining funds go to you—if you are in a position to earn a profit on the sale. With PropertyLark, we may offer you a standard purchase contract when we are buying the house directly. Or, we may do what’s called an “assignment contract” if we have another buyer in our network lined up. We’re essentially assigning the sale to them, though it doesn’t affect your end of the deal in any way, shape or form.

Lease Option

Another method that can be used in certain situations is called the lease option. It might help you get a little more money out of the house if everything works out. In this scenario, you would lease out the house to a potential buyer (often a real estate investor) for a specified term (usually 12 months). They would pay rent during that period and have an option to buy at the end of the term. The lease option makes sense if you aren’t quite ready to sell or if the buyer isn’t quite ready to buy. Obviously, it’s a bit more complex and nuanced than we can explain here, but it is a solution we’ll propose to our sellers from time to time if it is clearly the best option for them.

Subject To Financing

One of the most creative options investors will use is known as subject to financing—as in the sale is “subject to the existing mortgage staying in place.” This is when the purchaser takes rights to the title, but the existing mortgage remains in the seller’s name. The new owner takes over the control of the property and the mortgage payments. This agreement can be risky for a seller because their credit is on the line if the mortgage payments aren’t made. However, it is a very effective solution in certain cases, especially if you are behind on mortgage payments, upside-down on your home loan or facing tax default. Subject to financing will generally net a higher sales price and tax advantages from the sale. It also allows you to get out from under the house quickly and avoid a short sale or foreclosure by the bank.

Realtor® Referral

There are some situations when we talk to sellers who are seeking a cash deal or one of these other creative financing options, but they are actually good candidates for a traditional open market sale of their home. They aren’t in a rush to move and they have the resources to get their house ready. In this case, we may simply recommend you go through a real estate agent. We have a great referral network of Realtors® at PropertyLark and will connect you with someone who can help you get the most out of your home sale.

The point of this article is to show you that there are many options you have when selling. It depends on your financial situation, the condition of the house, the state of your mortgage loan, your urgency to sell and a variety of other factors. At PropertyLark, we listen to you and help you determine the best way to sell your house. We may make a cash offer or present you with another financing option, or we may refer you to a real estate agent. It’s all about helping you find the ideal home selling solution.

Fill out the contact form on the PropertyLark website to get started. We’ll get back to you within 24 hours to ask some questions and present you with your contract offer. In most cases, it will be a straight cash offer as the site says. Just know that we may suggest a different solution depending on your situation.