Here’s why you should sell your house to a Real Estate Investor
In today’s ‘hot’ market, houses are selling fast! However, this is not always the case, rather it is a very infrequent phenomenon in the housing market. If you want to keep this type of momentum and fast-track the sale of your property in any market condition, then consider selling to a real estate investor. A real estate Investors (REI) is a person or entity looking to invest in properties rather than live in them. This gives the seller some major advantages when working with Investors VS traditional homebuyers. Check out some of the top reasons that selling your house to an Investor could be the answer you’ve been looking for!
All CASH Offers
Traditional homebuyers have a long process to go through to secure a residential mortgage. There are documents needed, verifications that need to be made, and still, the lender can decide that the buyers don’t have the necessary status to make the deal go through. These types of funding mishaps can happen days before closing, costing everyone time and money. With REIs, there is a much different financing process. Most often, Investors are bringing all cash offers to the table. Whether it is financed through private means or through a hard-money lender, this type of financing can happen much faster and be more secure. You can also request a ‘proof of funds’ letter from the Investor that will prove they have cash or liquid assets that will cover or exceed the cost of the house. Financing is a huge component of selling your house and if you are looking for that extra level of security, then going with an Investor is a great option.
‘As is’ Sale
Traditional homebuyers are looking for a place to live and potentially raise a family. More often than not, they aren’t interested in taking on major renovations or updates, but rather want a house that is in good condition and has some nice amenities and updates already. A move-in ready house is a major attraction to buyers and usually makes a big difference in the potential sale. Many sellers can get caught in the trap of making these updates and renovations right before they list the house, so they have a better chance of selling. However, they don’t even get to enjoy these updates themselves and it can cost sellers a lot of time and money. Thankfully, there is the option of selling your house to a real estate Investor who doesn’t care about the updates that traditional home buyers do, because they plan to renovate the property anyways. For this reason, Investors are a great option because they don’t put much stake in the cosmetic conditions of the house.
Even better, Investors are even willing to waive inspections all together or agree to buy the house ‘as is’ regardless of what the inspection finds. For traditional homebuyers, the inspection phase tends to include a lot of back and forth negotiations with stress around who will pay for what and how to address the condition of the home. In some cases, the deal can even fall through if the buyers and sellers can’t come to an agreement around the inspection. Similarly to financing falling though, inspection issues can result in the deal falling through days before closing, which could be a major headache. These issues are not common when selling your house to an Investor. Since they budget for renovations anyways, Investors are not looking to ‘nickel-and-dime’ the sellers, but rather have an incentive to move the deal forward with as little back and forth as possible, so they can get renovating!
Speed
Both financing and inspection issues can delay deals by days or weeks! With Investors, the speed at which they can access funds is much more rapid than traditional homebuyers and again, they don’t necessarily care to discuss much on the condition of the house. The goal of an Investor is to close deals quickly! This can be a huge benefit to the seller, especially if they are on a strict timeline. Maybe you as the seller have already bought another house and want to avoid overlapping mortgages, maybe you are cutting it close to the start of the school year and want to get your kids settled into the new house before, or maybe you are close to foreclosing on the house and can avoid that through a quick sale. All of these reasons make an Investor’s speed in closing a deal very attractive!
Avoid other Costs
Another great reason to sell your house to a real estate Investor is the potential to save on many additional costs that go along with selling your house. While it might still be a good idea to work with a Realtor or Broker who can guide you through the process of the deal, you won’t need to spend time or money on staging, photography, listings, open houses, scheduling showings, cleanings or repairs, etc. All of these things are avoided with a sale to an Investor. Oftentimes, Investors don’t even look at the property they are buying! If the numbers check out, that’s all Investors need to know, so you can save time and money on making the house ‘sale-ready’. Investors can also take care of any outstanding liens or taxes owed on the property, which is a great deal for sellers who are trying to save as much money as possible.
Overall, selling your house to a REI could be a game changer for you: you can save time, money, and stress! If you are interested in learning more about Real Estate Investing or want to connect with Realtors and Brokers who can give you insight into this option, reach out to CPL today! We have a vast network of Realtors/Brokers who are always ready to help and advise sellers who chose to explore the option of selling their property to an Investor.