Selling Your House To A Real Estate Investor is one of the options you may want to consider, or at least take a look into. Although there are usually many “We Buy Houses” individuals or companies, they certainly not always operate in the same way. For example, some real estate investors buy houses and either: fix them up and sell them, while others hold onto them as a rental property, or sell them to other real estate investors who will hold them as rental properties.
Every area has reputable investors who you can contact to work with. As a general rule, the process of selling your house to a real estate investor is…
Step 1: You connect with the investor and provide some basic information about your house and or
situation to them.
Step 2: The Investor will evaluate the house, come up with a value for it, and determine the cost of any repairs needed, find out what your specific needs are, and make an offer that best fits their buying criteria and at the same time helps you reach your goals.
Step 3: You look at the offer and decide if it works for you.
Step 4: If it’s a win-win solution for you, all necessary paperwork is submitted to a local Real Estate Closing Attorney and all you typically have to do is show up at the closing. Investors have their money already lined up so you get your cash for the house rather quickly.
Step 5: The house sale is complete and you can move on to your next project. The process can take from 7-30 days (many times investors can close within 7 days if you need it to Sell Quickly). This quick sale of their house is a typical reason why many sellers sell to a Real Estate Investor. They need to sell their house fast with little hassle or just need the cash for their house quickly.
Cost: The cost to sell your house to a real estate investor is very low. There are no commissions or fees and often times the investor will actually pay for 100% of the closing costs as well. This immediately eliminates thousands in costs that you would
have to pay when working with an agent or selling the For Sale By Owner (FSBO) route. The main cost with working with a real estate investor is the fact that an investor can’t pay full retail value for a house. They usually look to buy houses at discounts that allow
for them of course to turn a small profit on the deal… just like any other business turns a profit. But, for many people… selling at a lower price makes sense in return for the elimination of commissions and fee and the much faster timeline to sell your house.
What many people don’t take into consideration are the “carrying” costs when selling a house with an agent or the FSBO route. Carrying costs are all of the costs associated with owning and maintaining the house. The mortgage payment, taxes, insurance,
utilities, HOA fees, etc. These can really add up. If your mortgage payment (including taxes and insurance) is $1,500… and you work with an agent and it takes them 8 months to sell the house at full market value… that means during the 8 months you paid
$12,000 in payments on that house (which we all know most of your mortgage payment is interest going straight to the bank). Plus, you’ll be paying the commissions, etc. So in the end, you could net in your pocket less if it takes a long time to sell your house
with an agent for full retail value… versus selling very quickly to an investor at a discount today.
Pros: It’s less headache, you can have your house sold this time next week if you wanted to, no fees or commissions, many times the investor will pay all closing costs as well, and the closing happens at a title company just like with an agent… making sure it’s done correctly. In addition, most investors will buy your house
“as-is” and won’t require you to repair anything, clean anything up, or even remove everything from the house. They’ll pay for those costs themselves after the sale is closed.
Cons: Just like with anything, there are drawbacks. The main drawback may be that you are selling at a discount in return for the speed and convenience that a real estate investor is able to offer. If you’re able to work with an agent and the agent is able to sell your house for full market value within 3 months (and you can wait 3 months)… you may be ahead going that route. But, if it takes longer than 3 months for the agent to sell it… the “carrying” costs we mentioned earlier start to eat away at any gains you may have working with an agent.
In the end, there’s no one-size fit’s all solution. If you have lots of time and aren’t in a hurry to sell… seriously consider going the FSBO route first to see if you get any bites. Then, if you still have lots of time (you don’t care if it takes longer than 6 months to sell)
you may work with an agent. However if you need or want to sell quickly…. maybe you’re in foreclosure, or you inherited the house and don’t want to mess with the hassle, or you’ve moving, or you
already bought a new house and can’t handle two payments anymore, or any other situation that calls for a fast and no hassle sale… working with a local real estate investor may be the way to go.
If you have questions about working with a real estate investor to evaluate how much your home is worth and what an investor will pay for your house… you may contact us in a number of ways.
Visit www.dsprealestate.com/ Call us at 205-401-7953/ Email: firstname.lastname@example.org