You’re ready to sell your home but aren’t sure how you should do it. The fact is, your options depend on your personal situation. Here are the most common ways you can sell your property:
- Hire a Realtor
- Put Your Home on Multiple Listing Service (MLS)
- Sell to a Friend or Neighbor
- Use a DIY website like For Sale By Owner, Zillow, or Craigslist
- Sell to an Investor
Have you seen the signs around town announcing “We Pay Cash for Houses” and wonder how that works? Those signs are from real estate investors. They want to offer you cash for a quick sale.
People often consider real estate investors without understanding the process. Yes, selling to an investor can be fast and profitable. But, you must make sure you’re working with a trustworthy professional.
Want to learn how to sell your house fast to an investor? Keep reading
What is a Real Estate Investor?
Real estate investors look for good deals on property. The investor buys the house, makes repairs and improvements, then sells it for a profit. They offer cash for a quick sale.
If you have a real estate problem, an investor may be your solution. Maybe you inherited a home you don’t want. Or, you want to avoid foreclosure. Whatever your situation, you need to understand the process. You want to a good deal that benefits both you and the investor.
How to Find an Investor
Contact a local real estate agent who deals with investors. Ask for the names of reliable investors. Some real estate agents work with investors and house flippers. If you’re lucky, the agent can introduce you to an investor.
You can find real estate investors by Googling them and contacting the cash home-buying investment companies you find. If your property is in an attractive neighborhood, developers may want to buy and rebuild on the land. Check with local real estate investment clubs like Bigger Pockets.
Avoid Scam Artists
Remember, investors don’t need a license to buy your home. Make sure you’re dealing with a real investor. Get references and research the investor. Check with the Better Business Bureau. The best real estate investors are referrals from a satisfied client.
Always consult an attorney or real estate agent before you sign an investor contract. You don’t want to sign away your rights to your home. Some investors focus on getting the best price, not what’s best for the seller.
If you’re selling because of financial problems or potential foreclosure, use a lawyer. Any plan to rent or buy back your home must be in a legal agreement.
Reasons People Sell to Investors
Here are the most common reasons homeowners sell to investors:
- Paying Off Debt
- Aging Relative
- Avoid Foreclosure
- No Longer Want to be a Landlord
- Not Interested in Selling Your House Yourself
- Inherited a Home You Don’t Want
- Want to Sell “As Is”
- Avoid a Realtor Commission
- Failed to Sell it Yourself
- Flood or Other Damage
- Quick Payment
No matter the reason, quick payment appeals to most sellers. An investor offers cash, certified funds, an assumption of the mortgage, and scheduled payments. Most investors pay in full at closing. Some offer more services at no cost to the buyer.
Investors Buy Hard-to-Sell Property
If you’ve tried selling your house without success talk to a real estate investor. Problem properties don’t bother them. If the home is in foreclosure, probate, or needs repairs, an investor will buy it. They don’t consider hard-to-sell property a hardship. Instead, they take on the challenge.
What kinds of hard-to-sell challenges? Let’s look at a few examples.
Did your tenant stop paying his rent? Has he damaged your property? A real estate investor will hire an attorney to handle eviction, then repair the property.
If you’re behind on your mortgage and at risk of foreclosure, consider an investor. You can get out from under an overwhelming mortgage and avoid the bank repossessing the home. Sometimes investors buy the home and allow the owner to remain after the closing as a renter. In the best case, you can pay off your mortgage and make a profit.
Inherited Property or Probate
Did you inherit a home that is old and unwanted? Is it in bad shape due to lack of maintenance? There may be overdue taxes. An inherited property can lead to litigation and court approval. A real estate investor understands the process. An investor makes a suitable buyer when a probate property is ready to sell.
Code Violations and Repairs
Does your property need extensive repairs to bring it up to code standards? If you can’t afford the repairs and don’t want more violation fees then talk to a real estate investor. Investors are experts at repairing properties. They’ll pay you cash and close before more violations pile up.
Advantages of Selling to an Investor
Let’s examine the advantages of an investor versus a conventional real estate agent.
No Realtor Commission
When you use a Realtor and list your home on the Multi Listing Service (MLS) you’ll pay a commission of 6 percent or more. A real estate investor doesn’t charge a fee.
Sell the Home “As-Is”
When you sell to an investor you don’t have to fix up your home to make it sell. Forget about a new roof or upgrading the kitchen and bath. A real estate investor buys homes that need renovations the owner didn’t want to make. Traditional real estate transactions include negotiations over repairs that can delay the sale.
Many investors make an offer in 24 hours or less. Once the investor examines the home it doesn’t take long to make an offer. The investor doesn’t have to spend time negotiating back and forth with the seller. Since it’s a cash offer the buyer doesn’t spend extra time acquiring a loan.
The best part of selling to an investor is getting paid in cash. Mortgage approvals can take months. Homes in poor condition aren’t eligible for mortgages. A buyer with a disqualifying situation like bankruptcy won’t qualify for a mortgage.
Real estate investors make the offer fast, then close in days. That’s the beauty of an As-Is sale. A traditional mortgage closing happens four to six weeks from application. The type of mortgage, the buyer’s situation, and the lender may affect the timeframe.
A fast closing saves the seller money on taxes, utilities, insurance, and maintenance.
One Open House and Inspection
A Realtor sets as many open houses and showings as possible. You can expect lots of people walking through your home. That includes curious neighbors and others who don’t plan on making an offer.
An investor may visit your property once for a walkthrough inspection. Some investors buy sight unseen if they plan to rebuild.
Negotiate Moving Out
Another benefit of selling to an investor is negotiating your move out. You can ask for more time, or work out a lease-back agreement. If the investor plans to use the property as a rental, you can be the first tenant.
The Disadvantage of Selling to an Investor
You may make less money selling to an investor. That’s because the investor’s goal is to make a profit. The investor is spending a large sum of cash and wants a return on his investment. The investor has to pay closing costs, repairs, holding costs, and taxes.
Someone buying your home to live in it may pay more. A buyer using a traditional mortgage isn’t risking their own cash.
How Investors Work with Home Sellers
Property investors are creative and flexible. They offer several ways to help solve your home selling dilemma. Some options are joint ventures, lending money, acting as a broker, and wholesaling. Let’s dig into each one.
Joint Venture Partnership
A joint venture means the homeowner and real estate investor are partners. The investor puts up the money and manages the sale. The homeowner puts up the property. A joint venture is good when the homeowner can’t catch up on mortgage payments, and renovations are needed. A homeowner could hire an investor to complete renovations.
Not every homeowner needs a fast cash sale. In those cases, a real estate investor can act as a broker if they are a licensed real estate salesperson. If the home is in good condition and the seller isn’t in a hurry, the investor can act as broker. He provides brokerage services to sell the home to its next owner.
Some real estate investors make loans to owners who want to renovate or rehabilitate a house. If you start a renovation but run out of money, an investor can help.
Some homeowners find they need to sell the home, but don’t want to move. A real estate investor may buy the house and permit the owner to stay after the closing. The post-closing residency can be short-term or as a tenant.
Wholesaling is when the investor enters into a contract with a home seller, then a partner or third-party buyer. The investor asks for a contingency in the contract that lets him or her back out if he can’t find an appropriate buyer before closing. This eliminates the risk for the investor.
Contact Sell Now Home Buyers to Sell Your House Fast
Selling your property is a major decision. Remember, not all real estate investors are the same. You want experienced, trustworthy professionals for such an important transaction.
If you need to sell your home fast in New York for any reason, contact Sell Now Home Buyers. We’re here to help you every step of the way. We’ll make it easy to sell your house for the best cash offer.