What are the Pros and Cons of Selling Your Property to Home Investors?

Posted by Casandra Properties on Saturday, January 25th, 2020 at 8:49am.

The total number of American homes purchased by investors dropped by 36% in the year 2019 compared to the previous year. 

The National Association of Realtors cited declining confidence in owning property in the United States as the primary reason for this decline. While it has become hard to sell new homes built from scratch in the home markets, it’s even harder selling your recently renovated house. 

The average home price in the U.S. has now exceeded the pre-collapse valuation following the 2008-2009 financial crisis. Yet, most homeowners still find it hard to find a buyer for their houses without collaboration with home investors.  

But is it a better idea to put your home on the market independently, or would it be advisable to sell it to a home investor? Here is all you need to know about home investors.

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Who Are Home Investors?

A real estate investor is an entrepreneur(s) who makes active or passive investments into home purchases with the view of making resell profits. Such investors, buy homes, make the necessary repairs and improvements to the property then advertise such houses at a markup.  

You may have come across signs in town with the message, “We Buy Houses CASH," these signs are advertisements from home investors. While selling your home independently allows you more freedom when making decisions, the hassle is often not worth it. 

You may derive more benefits when collaborating with a real estate investor. Read on to see the benefits of involving a house investor. 

1. Fast Closings 

Nothing is more frustrating than selling your home under pressure. You feel like the process is taking forever. 

You’ll also tend to receive numerous calls from potential clients who make promises but with zero commitment. Further, there are thousands of homes put in the home market listings by original sellers each day, which narrows your chance of fast closing on the deal.

Your home may take weeks, if not months, before finding a final buyer. However, most home investors take at least seven days to close in on the deal. This is because the process does not rely on market dynamics such as appraised values.

Home investors rarely require home inspections. They also don’t rely on approved financing to close on a deal. With such fewer complexities, your home selling process is fast and easy.

2. You Can Sell Your Home “As Is”

Your reasons for selling your home vary. But in most cases, home sellers make such sales due to underlying financial burdens. Now, you wouldn't want a scenario where you have to incur additional repair-related costs before selling your home.

Listing your house to the home market directly requires substantial investment in the process of revamping to enhance your home's curb appeal. While this raises your home's selling price considerably, you don't have a guaranteed seller.

But with a home investor, you don't have to deal with the complications of repairs and renovations. Selling your home "as is" means that the buyer is willing to purchase the home in the current condition, with or without faults. With such an option, why would you want to go through the hassle of repairs?

3. Avoid the Shenanigans of the Home Markets

Enlisting your house in the home market tests your patience and resolve to unimagined levels. You may end up taking hundreds of potential buyers on house tours yet end up not selling the house. You also need to incur the costs of photography as you try to market your home in numerous potential online sites.

Such complexities require time and money. But often you don't have the luxury to spend additional resources nor the time to stomach such shenanigans. You are in luck though, because selling your home through a home investor saves you the troubles salient in most home market settings. 

4. Flexible Payment Options

When you opt to sell your home through home investors, you have flexible payment options to choose from after closing the deal.  Investors offer you payment options such as certified funds, pre-planned cash payments, or cash on purchase options. You may also agree on a decision for the investors to take over your home's mortgage burden, depending on the agreement.

With such options, you're spoilt for choice. All you need to do is to settle on what works best for you. Such advantages are not always available when you put your house on sale on the home market.

Cons: Selling Via Home Investors Is Not Always Rosy

While selling your home to a house investor offers you all the above benefits, it's not always that the process will be smooth.  There are specific issues that emerge, which you must be aware of before committing your property.

1. The Licensing Quagmire 

The law does not require home investors to have a license as a prerequisite before buying. Essentially, this means that you have minimal information about your potential client. Such an arrangement affects your ability to undertake due diligence beforehand. 

But before making any formal commitment, you may need to ask for additional information about the buyer. Such buyers are either corporations or individuals. A credible home investor should be able to present their credentials to support their reputation.

2. Selling Below Market Value 

Unless you transact with highly reliable and honest home investors, you may end up selling your home at a price way lower than the market value. 

Home investors often cite the risk they assume by purchasing the house "as is" as the reason for the lower quotes when buying property. However, selling your home to a trustworthy and understanding home investor is different.

Reliable home investors charge you zero fees. You’ll also not incur realtor commission in such an arrangement. 

This means that even when the quote for your home is lower than the original market value, the home investor supplements the transaction costs. 

Are you looking for “a home investor near me?” There are dependable options you can consider. 

Selling Your Home Is No Longer Rocket Science 

Homeowners have often found the process of selling their homes quite complicated and frustrating. But with the option of dealing with home investors, you no longer have to be at the mercy of buyers waiting in a home market listing queue. You only need to vet your potential home investor accordingly, sell your home, and smile all the way to the bank.

To read more insightful content, keep visiting our blog.  

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