You can sell your home through a real estate agent to a person who wants to live in it or directly to a real estate investor who will want to fix and flip it for a profit. Even though selling to an investor is more painless and quicker than going through a real estate agent, you need to consider the various pros and cons of dealing with real estate investors.
Why Selling to a Real Estate Investor Appeals?
No lack of funds to prevent successful closures: Since it is the nature of the business to pay the entire transaction value in cash, genuine investors will always have the necessary funds to close the deal quickly. It is in stark contrast to selling your house to a buyer depending on a mortgage to purchase the property because the lender can always revoke the decision in case there is any change in the credit score of the buyer or other factors.
No need to repair and renovate the property: Not repairing, renovating, or staging your property to increase its appeal can save a lot of time, effort, and money which can eat away from your final sales price. According to https://www.huffpost.com, investors are willing to buy properties regardless of the condition because they will renovate it so that they sell it for a profit.
Faster closing: An all-cash deal with an investor is far less complicated and easy to formalize with a sale agreement. It is unlike selling your house to a buyer who needs the bank to perform due diligence and then have the mortgage documentation executed. A cash sale can be completed in around two weeks, while it may take two months at the minimum to close a deal involving a bank. You can learn more about the buying process at https://phillyfairoffer.com/we-buy-any-house.
Risks of Selling to a Real Estate Investor
You don’t know the end-use of the property: When you sell your home to a real estate investor, there’s no way to know who the final purchaser could be. To be fair, the investor may not also know who will ultimately purchase it. It means that your home could fall in the hands of a shady landlord or worse, a developer who will demolish your house and build a condo.
You will not get the full market value: Since the investor is in the game to make a profit out of the deal, the price he will offer in exchange for a quick sale will be less than the market rate. If the plan is to tear your property down and build apartments, you could potentially be losing out a lot. The best thing is to deal with a reputed investor who is more likely to give you the best possible deal.
Selling your home to an investor can have multiple advantages; however, you need to be wary of scams that can leave you with a bounced check in your hands and no control over your property. Be especially alert with people posing as investors but don’t want to see the house or asking all the right questions.