Should You Sell Your House to an Investor?
3 Things to Know About the Process
The “We BUY Houses” signs are everywhere. Well, they are in my town. These signs are actually put in place by investors and their companies. These aren’t grandmothers and grandfathers selling their family homes to just anyone. So, if you thought about calling the number on those signs, this blog is just for you. It’s important to know what goes into this process and how you can make the most of the process if you actually decide to make the call.
Here are 3 things to know about the process:
- You should not have to pay a great deal of money. Companies who are truly in the real estate investment business aren’t looking to get $10,000 from you. They have the cash. You don’t have to have it. They have the ability to buy your home when you’re ready. They may tell you they can pay in cash, do certified funds, or assume your mortgage payments.
Possible Pitfall: These investors know how significant their cash is, so they may try to get you to sell below market value. It’s the nature of the game.
2. The closing will more than likely be quick. So, if you aren’t quite ready to give up your family home and prepare to move, don’t call the number just yet. Closing procedures happen quickly with investors because they have the cash to pay. You can negotiate when you plan to move out after the sell, but the investor has some say in this as well.
Possible Pitfall: Scammers are real. Unfortunately, the bad people are out there. Be sure to know all of the details of the deal before you hand over the keys or move a single piece of furniture. You don’t want to hand over your deed, mortgage, or keys to a scammer.
3. You should not be required to do any repairs or renovations. Investors buy properties AS IS in these types of situations. If the investor or the company ask you to do repairs, they deal may not be legitimate. The investor is looking to INVEST, not move into the property; therefore, the repairs are of little concern to him or her.
Possible Pitfalls: You may come in contact with buyers/investors who do not have license for these transactions. And, they don’t actually need one to buy investment properties. That being said, do your research on the company you plan to contact and ensure you’re getting the longer end of the stick--not the shorter one.