As a homeowner, you may be in the market to sell. But the question remains: to whom do you sell? There are two major categories for potential buyers:
1. Another home buyer looking to purchase their first home or move, or
2. An investor. Although you may be inclined to sell to a peer – such as another homebuyer – we are here to tell you that learning about the benefits of selling to an investor may change your mind. Below, we will outline the 5 reasons an investor may be the best choice in your home selling decision.
1 – Investors Can Save You Money – No Commission Fees or Closing Costs
Selling your home can be costly; typically, around 6% of your home’s value is dedicated just to the real estate agent. This is known as the agent fee – the costs to cover the work of both the buyer’s and seller’s agents. What does this mean for you? If your home is valued at $1,000,000, this means you will be paying $60,000 in agent fees alone. Then, as a seller, you will be responsible for 50% – 100% of the closing costs, which can average around 2% – 5% of the home’s value (according to HAR). Closing costs can include home inspections, escrow fees, title company, title search fees, transfer taxes, underwriting fees, and much more.
When selling to an investor, however, you can avoid this loss in profit and be provided full compensation for the true value of your home! The investor will often waive the commission fees and cover the closing costs, providing you, the buyer, with the highest possible return on your property.
2 – Investors Buy Damaged Homes
Whether the home has average wear and tear or has been drastically damaged by a fire or hurricane, an investor can buy your home “as-is.”
If you hire a real estate agent to represent you in the sale of your home, they will often recommend that you have an inspector check the house and then suggest you hire a contractor, who might make certain repairs that can increase the value of your home.
On the other hand, an investor understands the hassle of dealing with hiring a contractor and committing the time and money required for repairing a home. Therefore, they offer a simple solution: purchasing the home “as-is.” This means no extra money forked out by you and no extra time spent fixing up your home. The investor will purchase your home exactly as it is!
3 – Investors Can Provide A Quick Close
When a home is placed under contract, it enters into what is known as the escrow period. The escrow period is the time allotted to the buyer to complete all due diligence necessary for the close. This can include the buyer completing additional inspections and getting to know the neighborhood. The risk associated with the escrow period is that it provides the buyer a longer time to pull out of the deal. Essentially, the longer the escrow, the longer the buyer has to change their mind about the purchase.
An investor, on the other hand, is well-versed in real estate due diligence processes and has frequently completed all the required due diligence even before going under contract. These are professionals looking to provide a quick and easy close – both for you and for themselves. Fortunately for you, with this knowledge and motivation, investors are able to provide a quick close – sometimes in as few as 5 days!
4 – Investors Provide All Cash Offers
One contingency that often extends escrow to 60 – 90 days is the finance contingency. That is, the time allotted to the buyer to get all aspects of the purchase completed for the lender so that the lender can provide the funds to the seller to close. This can create the need for additional inspections and can provide another avenue for the buyer to potentially pull out of the deal.
Investors, on the other hand, can provide sellers with all cash offers – this means no extended escrow and no hassle with a finance contingency.
5 – Investors Won’t Play Games: No Additional Costs
Getting down to the nitty gritty – at the end of the day, investors don’t play games; their education and professionalism are transparent in every real estate transaction. They do not nickel and dime sellers, do not ask for unreasonable requests, and do not make offers they are not serious about.
If you are looking for an accredited investor to purchase your home, contact us at Gulf State Homebuyers. Not only can we guarantee the above mentioned hassle free closing on your home, but we can provide additional services that can make your move even easier.