While most people sell their home the traditional way, there are a few scenarios where selling to an investor might make the most sense.
Inherited home
Often people will inherit a property from a family member and find the home is in disrepair or tenants are not taking care of the property. If the home is sitting vacant, it is a target for vandalism or squatters. These situations can be time consuming and costly. Selling the traditional method can take from 45-60 days, prolonging the problems. When you choose to sell to an investor, the process is simple and quick, offering a stress free solution.
Disrepair
Sometimes home maintenance can get away from us. When a home has a lot of deferred maintenance, getting it ready to sell on the market can seem overwhelming. This is why some home sellers choose to sell their home AS-IS to a cash home buyer like Property Spot.
Financing not an option
If your home is suffering from code violations and needs too many repairs, lenders will not loan money to a potential buyer. In a situation like this, a home seller has the option to sell the home to an investor who will be paying cash and does not need to obtain a loan to qualify.
Foreclosure
Let’s face it, the past few years have been tough for many people. If you find yourself up against a possible foreclosure, selling to an investor and removing the burden can help save your credit and even provide you with some quick cash to get back on your feet.
Need flexibility
If you need to stay in the home for a couple months after selling, or maybe you need to sell quickly. Selling your home the traditional way leaves you with very little flexibility. You will be up against many timelines, waiting for offers, inspections, repair requests, and closing dates. Investors have much more flexibility to work with you on your timeline.
Relocating for work or family obligations
Relocating for work or to assist family members can happen quickly, but selling a home on the market is not always a quick process. Working with an investor will provide a home seller with more options that suit their timeline needs.
Divorce
Relationships don’t always work out, and some home sellers find themselves in the difficult situation of going through a divorce. Many sellers in this situation find they would like to quickly settle the sale of the home and move on in their lives. Selling to an investor can be quick and effortless.
Rental with tenants
Selling a home with tenants comes with a whole new set of challenges. Arranging repairs, cleaning, pictures, showings, can all be very difficult, time consuming, and stressful. There are laws in place to protect tenants and a home seller needs to abide by those laws. This is why many home sellers choose to sell their investment properties to real estate investors.
Upside to selling your home to an investor
Maybe you don’t fall into one of the more common situations listed above, there are still many benefits to selling your home to an investor. Some of those include:
No repairs or prep work
Repairs and prep work are a common time and money expense to selling your home the traditional way. You will need to clean, declutter, make repairs, remove personal items, stage the home, and maintain it during the showing process. According to Investopedia, the average seller spends well over $6,000 prepping their home for sale.
Most investors are not concerned with how your home looks. They see beyond the clutter and look at the financial aspects. An investor will likely make repairs and resell the home or prepare it to hold as a rental property.
Selling to an investor does not require that you list the home on the MLS or go through all the time and expense of preparing the home for listing. No strangers walking through your home day after day, and best of all, no costly repairs.
You choose the closing date
Most traditional transactions will range in time from approximately 45-60 days from time of accepted offer to closing. This does not account for the time the home will be listed on the market trying to find a buyer. Even in a seller’s market, you will have timeframes that fall into the 45-60 days or longer closing period.
When you sell to an investor, you have more flexibility over the closing date and timeline. If you need to sell quickly, that is usually an option that can easily be accommodated by a cash buyer.
Simplified transaction
The process of selling to an investor is simple and straightforward. The home is sold AS-IS, so the seller does not have to make any repairs, clean, or even remove unwanted items. The investor will often pay for all closing costs, which means the contract price is what you get, no hidden fees!
All cash offers
Investors often pay with cash, which means there are no finance contingencies. No appraisals are needed and the home can be sold in its current condition.
When selling the traditional method, lenders will often require repairs be made before the buyer can close on the home. Likewise, if an appraisal comes in under the contract price, the seller will need to reduce the price or the buyer may cancel the contract.
Flexible timeline
Investors will have much more flexibility with the closing timeline. If you need additional time in the home, Property Spot will happily work with you to accommodate your timeline. Even if you need to stay in the home for up to 6 months after closing. Need a fast closing? No problem, Property Spot can accommodate that as well.
When you sell your property the traditional way, you will not have this same flexibility. Most buyers will not be able to allow you to remain in the home after closing. Also, closing in a couple weeks is not going to be an option. Lenders will need anywhere from 45-60 days on average.