How to Sell Your Home to an Investor
People choose to sell to an investor rather than to a traditional buyer on the open market for several reasons, but primarily because selling to an investor is almost always faster.
If your home has fallen into foreclosure or disrepair from financial difficulty, you need to get out from under debt quickly, or your home doesn’t qualify for a mortgage, an investor sale may be a good option.
Unforeseen life changes like a divorce or job relocation may require you to unload a house quickly to divide assets with a spouse or move to another state with little notice.
Suppose you’ve inherited a property and don’t want to incur an additional mortgage or cannot afford upgrades and repairs to make the house attractive to a traditional buyer. In that case, an investor might be your best choice. Some people just don’t want to deal with the hassle of doing repairs, showings, or open houses, particularly if the property has a tenant currently living in the home.
If you find yourself needing to sell a distressed home in any of these circumstances, you should know how to sell to real estate investors and the potential benefits.
Benefits of Selling a Home to an Investor
There are several benefits to an investor sale that can make it an attractive option.
- It Saves You Money
There’s an old saying, “You have to spend money to make money,” and most traditional home sales require some investment on the part of a home seller.
Most of the time, a seller will have to pay a sizable commission to their agent and, sometimes, the buyer’s as well. Depending on the purchase price of your home, that number can be significant.
If you’re listing your home, your real estate agent will probably recommend some upgrades or repairs to make it more attractive to buyers. A recent estimate claims Americans can spend over $20,000 making repairs and paying realtor commissions when selling their home.
When you sell a home to an investor, you won’t pay any commission fees. Most of them are willing to buy properties “as-is” and don’t require you to make any changes or repairs to the home, saving you a significant amount of money.
- It’s a Quicker, Simpler Transaction
If time is of the essence, an investor sale is a great choice. Typically, with a traditional sale, a buyer will require a 45-day escrow period to have the home appraised and inspected and their loan approved. Most cash investors can close on a house in less than a month and are more flexible with closing dates in general.
In addition, when you’re selling to a cash buyer as-is, you don’t have to waste time waiting for repairs and upgrades to be completed on your home before you can sell. As an added incentive, they may let you leave things in the home you don’t want, saving you the hassle of moving unwanted items.
Tips for Selling Your Home to an Investor
While there are several potential benefits to working with an investor, there are a couple of drawbacks to consider. Generally speaking, selling to an investor will mean a lower sales price. An investor is less likely to have the kind of emotional connection to a house that would have a traditional buyer offer more for a home. They’re also likely to factor in the cost of needed repairs with their offer. But because you’re saving money by forgoing repairs and commission fees, the difference may be negligible.
Another drawback to pursuing an investor sale is the potential for scams. Unlike a realtor, investors aren’t required to be licensed or credentialed to buy a house. There’s no shortage of companies that buy houses, but they aren’t all reputable. Sellers must use prudence and caution when deciding on a trustworthy, qualified investor. In researching a potential investor, there are some steps you should take.
- Visit Their Website
An excellent first step in getting to know potential investors is to visit them online. Most professional investors have a website that will give you a feel for the way they do business.
- Call Them
When you’re selling a home, you should have confidence in your buyer. You want to work with qualified active investors and not some fly-by-night operation. A great way to get to know the people you’re working with is to call their office. You can ask for a list of recent purchases and other materials to verify their business claims are accurate.
- Check Reviews
It should be relatively easy to find reviews of potential investors online. Even small investment companies have some online presence. If you’re not seeing a lot of client feedback, it could indicate that the company is very new and potentially less experienced, or their client reviews aren’t favorable.
- Look for Cash Buyers
Ideally, you want to sell your home to a cash buyer. Many investors have funds tied up in other endeavors, which can prolong the sales process. Cash buyers not only pay you in cash, but they also do it quickly and are usually willing to buy a home in almost any condition.
Reputable, Qualified Cash Buyers
If you’re looking to forgo the complications of a traditional home sale and work with an investor, Meli Homes is here to help. As Florida’s top-rated distressed home buyer, Meli is your only choice when it comes to selling your home quickly and efficiently.
We specialize in the purchase of as-is homes and understand the process. We know you deserve a fair price for your home, regardless of its condition, and can facilitate a satisfactory sale.
Meli Homes is comprised of qualified cash buyers, so we can skip the lengthy headache of escrow and loan approval. We can also help you to avoid unnecessary real estate fees.
We have years of experience and countless satisfied clients across Central Florida. We buy houses from Orlando to Melbourne and beyond. We encourage you to research Meli, visit our website, give us a call or explore testimonies about our many success stories.
Call Meli Homes
If you’re considering an investor sale of your home, Meli can answer any questions and provide the assurance you need to move forward.
We are qualified cash buyers with extensive experience in purchasing distressed homes, and we can help you sell your home fast in Orlando or Cocoa Beach, or Tampa.
So don’t wait. We can offer you a competitive purchase price with no hidden fees and a quick turnaround, and you can leave the stress of an unsold home behind you. Call us today at (407) 338-4183 to get started.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.
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