Know the Facts Before Selling Your Home to Investors

When your home goes up for sale, you likely envision a happy family or young couple putting in their offer and living happily ever after in your former house.

However, individual buyers aren’t the only ones who may make an offer on your property.

You may receive offers early on from investors: Firms and individuals often buy residential homes to use as rentals, to resell at a profit or to build up a property portfolio.

And as with most transactions, there are upsides and downsides in selling your home to investors. Make sure you know everything you can before you act.

Advantages to selling your home to an investor

Selling to an investor over a traditional buyer has some key advantages:

  • A regular buyer typically needs to wait for financing. This delay can slow down closing, and you may have to wait longer to finish the deal. Investors often buy in cash and are ready to close immediately, which is a huge perk if you’re looking to sell quickly.
  • Many investors are willing to offer flexible arrangements. For example, an investor might be willing to take over your mortgage, which is great if you’re underwater and struggling to find a buyer.
  • Most investors buy a property “as is”: If you haven’t kept up with home repairs or if your kitchen needs an upgrade, this is an attractive option.

Disadvantages to selling your home to an investor

Working with an investor isn’t always better than working with a traditional buyer. Consider these factors before you make a deal:

  • You won’t know who is buying your house. Investors aren’t legally required to tell you who is making the offer or why they want to buy your home. Some buyers may wonder if an investor only is interested because they know they can flip the property for more money.
  • You may not get the best deal. Most investors only buy properties that are below market value, while a buyer might pay your asking price.
  • You’ll have to do extra research to vet the investor and make sure you’re not being scammed.

Making a deal with an investor

Finding an investor might not be easy. Investors typically look for properties they can get cheap in great locations. For example, a home that’s under market value in an area popular for renters is a great deal for an investor.

Usually, investors identify properties through their own research. However, you can increase your chances by working with a real estate agent who’s worked with investors in the past and can reach out to these firms to promote your property.

Once you have an offer, look over the deal carefully. If the investor put in a low offer on a home you just listed, taking the deal might not make sense. But if your home has been on the market for months with no nibbles, working with an investor may make sense.

Looking for investors to buy your home? Contact our team at St. Louis Realty Advisors at 314-270-1601 for your quick, fair cash offer.

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