In this post we’ll tackle some common questions about selling your home to an investor so you can make the right decision for your situation.
What Does it Mean to Sell As-Is?
First, let’s start by defining the term “as-is” which simply means selling the house in whatever condition it’s in today. Whether the house is barely standing or has been left with all the belongings of the previous owner – that’s the as-is condition of the house. All investors, including us, promote as-is sales and that’s because we want to make selling your house as stress-free and easy for you as possible.
Will You Make Less Money?
This is a completely understandable concern. Reality TV shows have also made it seem as if investors are making more than their fair share off the home sellers. Most people we work with are pleasantly surprised to find our offer isn’t that far from what they could get selling through an agent. Most home sellers only look at the price tag of their house, but they forget to factor in things like:
- agent commissions
- transaction fees
- holding costs (mortgage, taxes, etc. that may come due while the house sits on the market);
- and of course major repairs
Getting Top Dollar for Your House
In order to get top dollar for your house, it must be able to compete with the other homes that sold for the most money. To get an idea of what that price could be you’ll need to know the sale price of the houses near yours. Look at houses within a half-mile or that sold most recently – no further back than 6-months. This helps to account for fluctuations in the market while pulling enough data to support your asking price.
Be Realistic
Buyers looking to spend for a top-market priced home are going to want it to be move-in ready. They want a house with all the style and conveniences popular in today’s homes. Compare your house look, and condition to those top properties like a home buyer will. If your house has been lived in for some time, chances are that it needs work. If you haven’t updated your bathrooms or kitchen in the past three years, the style will be out of date. If your house was built in the ‘50s it’s going to need some walls removed to give the open floor plan of modern homes. Interior paint should be neutral, and carpeting should be removed except for the bedrooms.
Should You Sell Your Home to an Investor?
If all that house remodeling sounds like a lot of work and money, you’re right! You might not want to go through all that hassle and inconvenience, but should you sell your house to an investor? The right answer depends entirely on your situation.
You Have Many Options
Selling your home for cash to an investor is just one of the many options you have in today’s market. A house sale with an agent is the default go-to choice for most sellers. For 75% of sellers, this is the right choice to make. If your house is in great shape, you have time to wait for the sale to close, and you don’t mind keeping your house in “showing condition” so buyers can walk through, then a traditional sale is a good choice. Agents will handle your marketing, negotiations, and showings.
FSBO (For Sale By Owner) may be another avenue to explore if you want to save on agent commissions. Just keep in mind that the full burden of marketing, showing, negotiating and ensuring all the paperwork is in order rest squarely on your shoulders. This is a risky transaction, and if your main concern is saving agent commissions, selling to us is a better option. We don’t charge commissions or any additional fees. We’ll give you fast cash for your house, and you won’t need to manage the legal paperwork or make tiresome appointments with buyers who may or may not be qualified to buy.
Besides the FSBO transactions, there are a few other situations where selling to us is going to be the better choice.
Sell your house fast
We are typically able to complete a transaction in as little as 10 days and unlock cash tied up in equity.
You have a complicated sale
Short-sale, probate, or unwanted inheritance sales require expertise beyond typical real estate agent education. Though there are agents who specialize in these areas, most do not.
The house is in disrepair
The repair costs are more than you can or want to spend, or if the damage is simply too overwhelming to deal with.
Are There Advantages of Selling Property to an Investor?
Beyond the usual factors of the house condition, transaction speed and type, we also take your unique situation into account. There’s a personal story behind each house we buy. We take the time to get to know you and find out what your situation is and how we can help you beyond just buying the house. When we get thank you cards from our clients, they don’t thank us for buying their house. They thank us for helping them move, and for finding them temporary housing, for providing storage for heirlooms, and mostly we get thanked for helping them get out from under a burden so they can sleep at night.
Learn more about selling your home to an investor, download our ebook, “We Buy Houses for Cash.” This 30-page ebook debunks common myths about working with cash home buyers so you can be confident that selling your house to an investor is the right choice.
