4 Benefits of Selling a House to a Home Investor

When you decide to sell your house, you can sell it to an individual, a realtor, or an investor. Traditionally, most people opt to work with realtors to sell their houses. But even though they’re professionals who understand the industry and how it works, selling a home through a realtor won’t always work to your benefit–not everyone who does so has a pleasant experience.

When you sell your home to an individual, there’s a high chance it’ll be considered a significant investment and become a place to raise their family. The situation is different when you sell your house to a home investor. Often, investors purchase houses from homeowners to make money.

Compared to realtors or individuals, here are some benefits when you sell a house to a home investor:

The most significant challenge you’ll encounter when selling your house is improving its curb appeal to attract buyers. If the home has structural issues or needs serious renovations, finding someone to buy it in the traditional market can be an uphill battle.

To complicate the situation, financing institutions, like banks, increasingly require sellers to repair houses fully before approving loans for prospective buyers. This makes perfect sense because home buyers want to purchase homes for sale that are move-in ready as opposed to a project that requires time and financial investment to make it ready.

When you sell your house to a home investor, you can avoid this challenge. Since the investor has no plans to live in your home, they won’t care about the property’s current condition. Most investors opt to buy an old, outdated house to fix and flip them for profit.

The main reason why selling a house takes a long time is due to the hold-ups by lenders or banks. In situations where a buyer opts to get a mortgage to finance the purchase, the process can grind for a long time. In worse cases, it may even collapse entirely.

Also, since banks handle numerous mortgage applications daily, they can take longer to approve loans. This leaves sellers with little option but to wait and hope the sale pulls through. The situation is different when you sell your house to a home investor. With this kind of sale, you avoid the uncertainty and delay that characterizes buyer mortgage applications as most investors have financing readily available.

Selling a home to realtors or individuals has its fair share of challenges. One of them is that the sales come with several problems, including potential hold-ups and last-minute pull-outs. Other factors that can result in the collapse of deals include buyer remorse, negotiation hitches, and low or unavailability of financing.

For instance, a prospective buyer may receive feedback that the bank has retracted their mortgage or the inspection report may reveal structural issues in the house. Still, sellers may come across buyers who reduce their offer price just before sale contracts are signed.

Selling your house to home investors allows you to avoid these roadblocks. Since they’re professional in their craft, their interest is to crack the numbers and close deals fast and efficiently. Once your home gets inspected, you’re likely to receive an offer the same day and payment within a week or less.

Most people opt to sell their houses due to pressing needs that push them to accept a lesser price to raise cash quickly. Financial needs that necessitate a fast sale may be triggered by different factors–ranging from career changes, injuries, and unexpected hospital expenses to layoffs at work and change of location.

When you have a financial emergency, home investors present the fastest way to sell homes. Whether you’re changing your workstation or need to liquidate the equity that’s tied to your house, a home investor can pay for it in cash and speed up the sales process significantly. In most cities, sales deals with home investors are closed and completed within two weeks compared to selling to mortgage buyers that take between two and four months.

Investors have an interest in closing sales fast because the sooner they finalize the purchase, the sooner they’re able to roll out their money-making plan. As such, the sales process moves forward without hindrances once you agree on the conditions of the sale.

Final Thoughts

Selling your house to a home investor may not fetch the amount of money you’d get if you placed it on property listings. However, it’s the most convenient way to sell your home when you have limited time and are hard-pressed for cash. If you’re considering selling your house, the four benefits discussed should help you determine whether selling to a home investor is worthwhile.

Published in: Home advice | Author: Lynn