When you’re planning to sell your home, you would want to be able to have the best return out of it. No homeowner would ever want to sell their home without having a high price in exchange for the same. One of the ways on how homebuyer’s in San Antonio, TX, can sell their home is to offer it to real estate investors. However, if you are a first time home seller, you may not know the basics about selling your home to investors yet.
This article seeks to remedy your lack of knowledge about selling a home, as it presents you with all you need to know before you decide on selling your house to investors.
The advantages of selling your home to investors
Investors can offer flexible payment options.
One of the advantages of selling your home to an investor is that these investors usually have a lot of readily available funds. Hence, if you are in dire need of cash, then this is the best possible option for you. Upon the closing of the sale, investors can offer full cash payment for your home. Apart from cash payments, they can also provide the following modes:
Scheduled cash payments
2. You can sell your house as it is.
Another advantage of selling your house to investors is that you can sell your home as it is. Investors are more than willing to take your house as what it looks like, but of course, it is given that the sale price will be so much lower than it should be. The significant advantage that you can gain out of this, however, is that you will no longer have to undergo any necessary repairs before you can put your house up for sale.
Since you can now sell your house at its current state and you are looking forward to dispose of it fast, then selling your home to an investor is the best option for you.
3. You will not have to pay a commission to investors.
Each homebuyer has its pros and cons, and another money-maximizing benefit that you can gain out of selling your house to investors is that you will not have to pay them a commission like you would with real estate agents.
Real estate agents typically ask for around 6 to 10% of your selling price for their commission, in exchange for their effort of selling the house to a buyer. When you sell it to an investor, they do not ask for commissions. You can keep this percentage for yourself to maximize your sale, rather than deduct it from whatever earning you may have out of selling your home.
4. You can sell your home faster.
Selling your house to investors is the fastest way for you to do. If you are moving to another state or country, or if you are time-bound with selling your home, it can cause you to be very impatient about the sale, especially if you have to wait for four to six weeks before you can even close the deal.
When you sell your home to an investor, the sale can be completed within a week to a month. This rate is relatively faster compared with selling your home to a realtor, where it takes an average of four to six weeks to do the same.
The disadvantages of selling your home to investors
Investors usually purchase houses at a wholesale price.
Because your house can be sold fast, it is also given that investors will pay you a wholesale price. Wholesale price refers to an extremely steep discounted price of your house. Hence, you may not be able to enjoy the full amount that should be the market value of your home.
2. Investors are prone to scammers, as they do not need a license to buy a house.
For a realtor or broker, in order to legally deal or sell a house, they need a license. For investors, however, this license isn’t required. With this, there is little to no umbrella of protection at all. It is hard for you to decipher if you are dealing with real and honest investors, or if you may be dealing with scammers.
To protect yourself, whenever you have a doubt as to the identity of the investor, do not push through with the sale, or go for full cash payment instead before you turn over your house and sign the papers.
3. The price is lower than expected.
Investors can close a sale really quickly, but often, the price is not a competitive one. The price offered can sometimes be low, plus they can ask for so many discounts as well. If you are planning to sell your home fast, this option is very attractive for you. However, you are wasting all the potential of your home to earn a little bit more.
To remedy the above situation, it comes highly recommended for you to consult a realtor first before selling your home to an investor. A realtor can assess the current market value of your home, and the markup that you should place, to give room for discounts. It is through the realtor that you can get the best deal possible for your home.
Apart from the current market value, you should also ask your realtor to evaluate the cost of the possible necessary repairs that have to be done to your home, if you are planning to sell your house as is. It is a good idea for you to know about this estimate so that when the investor comes to visit your house, you also have a more refined assessment of what the proper deductions are necessary for your home, and its current value.
For whatever reason it is that you are leaning towards selling your home to an investor, the same comes with its own set of advantages and disadvantages. You have to study, based on your needs and preferences, if selling your home to an investor is the best option for you.