Understanding the Pros and Cons of Selling a Home to Investor
To make an informed decision, it is important to learn the pros and cons of selling to a real estate investor.)
Signs like “We Buy Your Houses for Cash” must have caught your attention, especially if you are looking to sell your home.
Or perhaps you’ve approached a real estate investor who buys houses for cash.
But if you are dealing with those investors for the very first time, here are the things that are likely to bother you…
Who are these people? What kind of business is this? Are they genuine? Or there’s the catch?
To make an informed decision, it is important to learn the pros and cons of selling to a real estate investor.
What are the Pros to Sell a Home to a Real Estate Investor?
This is the key benefit of working with real estate investors. They buy your home with cash and close the deal right away within a week. This is quite beneficial, especially if you are looking to sell your home quickly. Mostly the sellers walk away with cash only a few days later.
This way, you avoid costly marketing, open houses and unnecessary delays due to picky buyers.
Selling “as is”:
The investors buy all houses, whether it’s ugly, foreclosed or haunted. Therefore, you don’t have to spend on costly repairs and expensive improvements.
Flexible Payment Options:
You can make a payment via plenty of options like certified funds, cash, and pre-scheduled cash payments. It lets the sellers find a method that meets their needs.
No Risk of Sales Falling Through:
A cash sale also eliminates the potential risk of losing the buyers at the last minute when they can’t make for a loan. Once the cash is in your hand, there’s no backing out or last-minute nervousness. Such cash sales are closed within 1-3 weeks compared to about 4-7 weeks on a traditional sale.
And there are Some Disadvantages as Well…
It is Not a Licensed Business:
The investor may not be a licensed professional.
So you don’t know about the person or the company willing to buy your home. Some investors may be a corporation, but some are individuals acting as a real estate agent. It may bother you as you are not aware of their motive behind the purchase. Do they want to buy your property to resell it for more dollars? You want to make sure that they are not a scam artist. To avoid the risk, search them online and ask for references.
Real estate investors buy the property “as-is”, meaning that they have to pay closing costs, holding costs and taxes. Those costs are often factored into their offered price for your home. So the investor is not likely to pay according to the market value of your home. Usually, they aim for 60-80% of appropriate market value.
Should You Choose a Cash Buyer to Sell Your Home?
So you must have seen both sides of a coin.
Selling a home to the investor is beneficial for a motivated seller. As an added bonus, you don’t need to spend money on home improvements as they buy the house as-is.
We also mentioned some cons associated with this process. You can avoid them by working with a reliable and experienced cash home buyer.
Therefore, make online research and ask for references to make sure that the buyer is not a fraud or the one with an ill motive.
And you don’t need to go anywhere. We at AHB buy houses in any conditions in California without charging you any commissions or fees/obligation. Contact us now to get your home sold quickly for cash!