When we think about selling our home, we often think about selling to a family or maybe even a young professional. But there’s another option too: selling your home to a home investor. Selling your home to a home investor has a lot of benefits, but they’re also situational. Here’s what you need to know.
Selling to a Home Investor: The Advantages
Why don’t we hear more about selling to home investors? Well, a lot of times it’s just that people don’t know to go to a home investor first. There are numerous advantages:
You don’t need to renovate or repair your home
Most buyers want to see, at minimum, new carpeting. But home investors are willing to purchase a home as-is because they know that they can complete the repairs cheaper than you can. This is of critical importance, and it’s also why they can offer you fair market value. They know it needs repairs, but they can complete them affordably.
You can close quickly
A home investor isn’t going to bother getting a mortgage (which could fall through too). Instead, a home investor can produce cash for the purchase and close once the wire transfers have gone through.
You save money
With a home investor, you don’t need to go through a real estate agent. That also means you don’t need to pay expensive real estate fees. You’re just paying the costs of the actual transaction.
You get fair market value
A lot of people are skeptical of home investors. They think they’ll get low-balled because the home investor is going to flip the home. But the truth is, because of economies of scale, the home investor will invest a lot less money into getting the home ready to sell than you would have to invest. So, they’re really saving you money and are able to give you fair market value.
You skip inspections and appraisals
A home investor decides how much they’re willing to offer, and you decide whether that seems right to you. Otherwise, you have to get an inspection report and make repairs that are requested there. You may not be able to sell your home for as much as you want to with a private buyer because you will be limited by the appraisal. The home investor doesn’t need an official appraisal.
You won’t deal with last-minute financing failures
When you’re dealing with a regular home buyer, their financing can fall through in the last mile. You might find yourself having to go back to square one and find a buyer all over again. A home investor isn’t going to waste your time like this.
With all those advantages in mind, it’s surprising more people don’t go directly to home investors. But a lot of that is because people are used to working through real estate agents.
When Wouldn’t You Sell to a Home Investor?
At this point, you can see that selling to a home investor is almost always the best option. Home investors aren’t picky, they know what they want, they’re willing to pay fair value, and they’ll close on a sale fast. What more could you desire?
Well, a home investor isn’t going to get trapped into a bidding war. If you’re trying to sell your home for more than it’s valued, an investor probably isn’t your best bet. If you’re selling your home for sentimental reasons and are really attached to the family who will eventually take your place, you also might not want to work with an investor.
For most people, though, selling to a home investor is the best choice. But that means that you need to find an investor interested too. Contact Purple Mountain Holdings today to find out whether this could be an option for you.