Should I Sell My House To An Investor?

Knowing when you should sell your house to an investor is key to making the best decision.

Should I sell my house to an investor? Often we think of individual buyers or families as the typical buyers for houses. This has changed rapidly over the last few years and investors, or companies that buy houses are now making a large portion of the purchases of single family houses. Knowing if selling to an investor is key to making the right decision, as you shouldn’t always do so. In fact, sometimes selling to an investor may net you less money from the sale, other times it’s the best possible decision to make. Here’s how to tell if selling to an investor is the right decision for your situation.

You should not consider selling to an investor if your house is in great shape, unless you need to sell quickly. If your house is in good shape and you don’t need to sell quickly, listing it or selling it yourself would be a better idea.

You Should Sell To An Investor If:

  • Your property needs updating or repairs.
  • You’ve recently inherited a house, or you have a house in probate.
  • You own a house that is in foreclosure and you need to sell quickly.
  • Your property cannot qualify for conventional financing. (Investor is likely your only choice if this is the case.)
  • You need to sell a house quickly.

Advantages Of Selling To An Investor:

Often times sellers do not have to wait for conventional financing. Financing often delays the process of closing, and can significantly increase the time spent in escrow. Investors most often purchase using cash, meaning they can close quickly, or on the date of your choice.
Investors typically do not care about the condition of the property. Investors often times are not planning on living in the house, so condition is usually never an issue. This can be very helpful if your property cannot qualify for financing.
Investors are typically flexible on the terms of an agreement, where a typical buyer might not be. For example, closing date, condition, moving arraignments, etc… Most investors also do not care if you choose to leave items at the house.
Disadvantages Of Selling To An Investor:

Make sure you do your research on the company or individual who is buying the house. Make sure they have some testimonials, or ask for a list of properties recently bought. Also, ask for referrals. Usually a real estate agent would do this work for you, but if you’re selling to an investor without a realtor doing a little homework upfront can go a long way.
Most investors do not pay full market value for the house. This doesn’t necessarily mean it’s a bad deal. If the house is in bad shape you can end up saving money on realtor fees, escrow fees, closing costs, repair costs, and holding costs like mortgage, taxes and interest. Just make sure you have a decent understanding of the property value in its “as-is” condition. Also, make sure you understand that an investor needs to make a profit, while a regular home buyer does not.
Dealing and Negotiating with Investors

Are you asking yourself should I sell your house to an investor? Well, hopefully you’ve figured out if selling to an investor might be a good option for you by now. If so, it’s important to understand how to deal with investors as well as negotiating with cash house buyers.

Tips For Dealing And Negotiating With Investors:

  • Let an investor know you understand that they need to make a profit, but you expect a fair deal for both parties. Let them know upfront you understand what your house is worth.
  • Ask the house buyer for references.
  • If they give an offer, ask them how they came up with that figure. Transparency is important.
  • Ask them what they intend on doing with the property after they buy.
  • If you’d like an offer, simply fill out this form below and we’ll be in touch soon. Good luck!