How (& Why) to Work With An Investor
When you first decide to sell your home, I am sure you will be looking to recoup top dollar on the sale. Many home sellers these days underestimate the time and length it takes to sell your home (especially in the Syracuse NY market). Selling your home is NO easy task and there are a lot of variables that are involved. When selling your home, depending on the condition of your home and situation that you are currently in, you may recieve offers from not only homeowners but also investors. Now, selling your home to an investor may not be the best option for you but if your situation falls under certain areas it may be the best solution for you and your family.
How Do I Know If I Should Consider an Investor?
When finally deciding to sell your home, you should take into consideration different variables before you decide to list your home on the open market. As discussed in previous posts, home buyers these days are becoming very picky. They want there money to be worth more than it truely is and want the home they are purchasing to be the home they have always dreamed of. This means if you are planning on getting top dollar for a home in your area, you better have a lot of the basics of the home refurbished (Interior paint, carpet (flooring), mechanicals, landscapping etc). Some homeowners are not interested in making these necessary changes so they may decide they are willing to sell there home for less than market value. Here are some reasons you may decides to sell your home below market value and work with an investor:
Do not want to make necessary repairs
Can no longer pay your taxes (avoiding foreclosure)
Can no longer make your mortgage payments (avoiding foreclosure)
Out of state owner
These are just a few reasons working with an investor may be your best choice.
Advantages of Working with an Investor
Working with an investor offers you some benefits that you will not recieve on the open market. These benefits help alleviate some of the hassles that come with the sale of home. As spoken about previously, its hard enough to sell your home but if for some reason you need to sell quick or dont have the money to make necessary repairs to sell, working with an investor will help. Some advantages to working with an investor:
Ability to purchase your home with cash and close on the sale in 7-14 days (This alleviates the drawn out sales process on your home- preventing you from continuing to pay for utilities, insurance and your mortgage)
No Commissions- When you sell your home you will not have to give 7% of your home sale to real estate agents/ brokers
Hiring the right agent- You will not have to go through the interview process to see which agent will work best for you and your family in the sale of your home
No wait for Financing- As stated in the 1st advantage, there is no financing since the purchases are in cash.
Do not have to make necessary repairs- This gives you the ability to just sell your home for less without actually having to put up the necessary capital to make these changes- keeping your money in your pocket.
Disadvantage of Working With An Investor
Sometimes working with an investor may not be the best choice for you and your family or the investor for that matter. If your home is in good condition and you will be able to recieve full market value for your home, you as the seller should not consider working with an investor. Some disadvantages working with an investor are:
Low Ball Offers- Investors are usually looking for properties that are far below market value.
Not working with a Licensed individual- You do not have to take a class and recieve a license to be an investor. Hard to get any background information on who you are working with.
Being Scammed- Some investors are just out there to try and take advantage of you. Beware and do as much research as possible to vet these individuals.
How to Find An Investor to Buy your Home
If you do determine that working with an investor will be the best way to solve your problems and put your family in the best situation the place you should start is the internet. The internet has the most contains the most information and you willl be able to find investors/websites by searching (We Buy House (insert city), Real Estate Investors (insert city). This will also allow you to do some due dilligence on who you are going to be working with. These websites will usually give you a form to fill out and contact information to speak with the investor.
You can also ask local real estate agents. Real Estate agents do work with investors and should know information of local investors in there area. Some agents will be a little hesitant to give names because they will not be recieving any commissions from the purchase but this is another source where you may find them.
The Process of Working With An Investor
To keep this as simple as possible when reaching out to an investor they will have you do a few things to find out as much information as they can to see if your home will be a good investment for them. These investors are doing what they are doing so they can make a profit, so if they do not feel that by taking on the risk of purchasing and holding your home they can make a profit, they will not consider the deal. Here are some of the quick steps they take to see if a win-win situation can be produced from the deal
Have you fill out a form or ask you certain questions to qualify the seller
If they get answers they feel they can work with, they will send a representative out to take a look at your home.
They will evaluate and estimate the necessary repairs that are needed to sell your home for top dollar.
They will give you an offer- whether thats cash, taking over your payments etc.
The seller will usually have 3-5 days to accept the offer
If the offer is accepted, the investor will be able to close on your house in 7-14 days if purchasing in cash
Depending on your current situation you may feel that you are better off working with an investor or listing your house on the market. Whatever situation you deem necessary make you do your proper due dilligence on all parties involved so you can protect yourself and your family.