Statistical data indicates that 89% of the homeowners who wish to sell their home, are listing it with real estate agents. Yet some homeowners who are listing their homes for sale online directly are often getting offers from home investors. Hence these homeowners often ask the question Should You Sell Your House to a Home Investor? They want to find out what are advantages and disadvantages of selling the house to the investor instead of using the services of a well established real estate agent to find a direct home buyer who will live in the home after purchasing it.
Investors and Homebuyers
The main difference between home buyers and investors is the difference in intent since the home buyer is looking for a house where he can comfortably live with his family while the home investor is only interested in maximizing his profit. The home investors can be further classified into
- Home Flippers who prefer to purchase homes in poor conditions at a very low price. They will repair and renovate the house to sell it at a much higher price, usually within a period of one year.
- Buy and hold investors: wish to invest in property which is likely to increase in value over a period of time. They also interested in renting the property, so the appreciation in value and rental income is the profit which they make.
- iBuyers are buying and selling properties online for a greater profit.
Advantages of Selling a House To a Home Investor
- The home investor will be usually be financing the purchase himself since he has enough funds. Hence the seller will get the money soon after the deal is finalized. Most typical home buyers are taking a loan, and there may be delays of 45 days or more for the seller to receive payment.
- The seller can sell the home in an as is condition, without spending, time, money, and resources on repairs. Home investors understand that home owner may not be able to repair the home, so they purchase the home at a discounted rate.
- Less effort required since the homeowner does not have to prepare the home for the sale, repairing and cleaning the house or interacting with the real estate agent.
The main disadvantage of selling a house to home investors is that the sale price is usually far lower than the market value since the investors will always try to maximize their profit to the extent possible.
The professional, financial background of each homeowner who wishes to sell his home is different and a decision on selling the house to a home investor should be taken after considering the following
- The urgency of the home sale, whether the seller requires money immediately
- Condition of the house, whether repairs are required
- Whether the seller has sufficient money for repairing the house
- Whether the schedule of the seller allows him time and effort for repairs, arranging for repair persons
- Future plans of the house owner, whether he wishes to purchase another house with the money
So based on the above information, the homeowner should take a decision on the sale of his house. If you are a Denver homeowner that needs to sell your house fast for cash, here is our best recommendation of property buyers www.needtosellmyhousefastindenver.com/