Most people do not realize the intricacy of selling a house until they get to it. As a matter of fact, selling any property is a massive financial transaction and making careful considerations is the least you can do. When selling homes, people are used to using realtors or listing it on the market themselves and wait to get a buyer.
However, selling your home directly to a real estate investor has many advantages. Over the last decade, the real estate market has experienced numerous radical changes. It is now becoming more common for usual home sellers to meet investors. If you have a property listed on the market, it is likely you have come across billboards reading, “DON’T FIX YOUR HOUSE – WE’LL BUY IT!” or something such as, “WE BUY HOMES FAST!” Some have already even received offers to purchase their homes from real estate investors. Be that as it may, if you are like most people selling homes, this could be your first business encounter with investors. So what are some of the benefits of using real estate investors to sell your home?
Short Sales Experts
Investors are Experts in Short Sales. In a short sale, one sells their home for less than what they owe mortgage companies. Short sales are complex transactions that take time, and if not handled properly, often fall through. This deal can only close when all persons owed money have to agree to be paid less money. On the other hand, short sales can be very handy if they go through. As a seller, this strategy can help you escape having a full foreclosure on your credit record. In some cases, homeowners have successfully persuaded their lenders to report the debts to credit bureaus as having been paid in full. If you are facing a full foreclosure, this is the way to go. Selling your home to an investor may as well save your day.
Investors have Fast Closings
The conventional procedure for selling a home takes so much time. Activities such as home inspections do not apply. In fact, this type of property sale does not even depend on approved financing or appraised values. You will bypass most of the usual steps and expedite the process considerably. Some investors are known to close within a week or less. If you are selling your home because there is a set date for its foreclosure sale, you do not need to worry. On the other hand, listing your home on the market or contacting a realtor to help you find a buyer may take ages. You probably want to sell this house before the foreclosure sale date. Call one of the investors you have seen on adverts or find one online because it is the only way to end the foreclosure. If you are in for a desperate sale, fast investors are by far your best belt. Look for those who can close deals in 2-3 days. These investors work with banks they are used dealing with. Such banks will never pull funds at the last stretch. While investors may use conventional loans to buy the house, their relationships with banks guarantees you a handsome down payment.
Using Investors Saves More
When selling your home either with a real estate agent or listing it in the market, you will wind up footing more bills than you thought. First off, when using a realtor, you will have to pay a certain commission for their services. This commission is usually a percentage of the selling price of your home. In other words, you get less than your home’s selling price. Secondly, real estate agents will encourage you to fix up your home, as well as the yard in order to attract most prospective buyers. Even if the realtor doesn’t tell you, the buyer will tell you during house inspection. Imagine a buyer pointing out countless problems that need fixing up before they buy the home. In most cases, there is no guarantee that they will actually purchase your home after the repairs.
Be that as it may, repairs involve hiring costly contractors. If you are selling your home because you need the money urgently, you certainly cannot afford to hire expensive contractors. Using real estate investors, however, to sell your home, means selling it in its current state. If you are keen, you must have seen adverts reading “WE BUY UGLY HOUSES.”
You do not require doing any repair or fixing up. Therefore, though in your financial struggles, you will not have to spend money that you actually don’t have. Investors buy homes in those conditions because they have greater investment plans for the homes. Usually, the houses have to be renovated to give them better face and attract either renters or buyers.
Flexible Payment Plans
When working with investors, you stand to benefit from a full range of payment options. Investors engage in multiple business deals. This has made them subscribe nearly all the major payment options in the market. It makes it easy for them to make transactions. This is only as useful to them as it is to the seller of a home. When selling your home, you need a buyer who offers a payment plan that suits your needs. Some of the payment options charge significant sums of money as transaction fee. This may affect the total cash you get, as well as your planned expenditure especially when on a tight budget.
More often, investors offer to pay cash when buying homes. Recently, financial restrictions became more stringent, not to mention the swelling numbers of complaints regarding low appraisals. Those are just a few factors making cash buyers more appealing. Some people argue that selling your home using real estate investors has lower returns. However, when you add up the costs of hiring a realtor and repair contractor, you end up spending more. Homeowners had limited options for selling their homes. However, real estate investors have offered myriad options that make it much easier to sell your home. Using investors to sell your home is safe and convenient.