Working with an investor is not for everybody, but it is right for some. Here are few common reasons why homeowners choose NOT to work with an investor.
1) They think they can get top dollar for their property by selling it themselves or working with a realtor. If the property is in mint condition and completely renovated, this may be true. Remember that you must also pay a realtor commission no matter what the place sells for. Also, if you try selling the place yourself by listing the property online, it may be harder than you think. We have received many calls from homeowners frustrated because they wasted months trying to sell their property themselves with no luck. Wasted time turns into wasted mortgage payments, wasted utility bills, wasted taxes, and wasted stress.
2) Home sellers don’t trust investors. Many people think investors are out to “rip off” or “trick” homeowners with lowball offers. House buyers have a reputation as being untrustworthy. The truth is, most investors are everyday people like yourselves just trying to make a living. Any credible investor should be able to explain in detail how they arrived at their offer price. Remember, in addition to repairs, there are many other expenses when renovating a property. Investors must pay state taxes when they buy, and again when they resell the property. They must pay their own realtor to resell the property, pay for financing costs, holding costs, insurance, utilities, attorney fees, homeowner concessions, and unexpected repairs.
3) They think the market is going to go up! Remember, 2008? The market does not always go up. There will be periods when property values rise, and periods will property values fall. The problem is, nobody knows when these periods will occur. If any person or realtor tells you the market is hot, be wary, they may just be trying to sell you. Take a chance and roll the dice if you want to wait for appreciation, but don’t get caught wishing you would’ve accepted an offer before the market crashed. So many homeowners wait out for a better offer that never comes. They say your first offer is usually the best one.
4) The homeowner does not care about their property. A lot of homeowners let their run-down property sit and sit and sit until one of two things happen. One, the property goes into foreclosure and is taken away from the homeowner. The homeowners’ credit is now destroyed for 7 years.
Wrapping Up
Selling your house is a very important decision. Don’t take it lightly. Don’t assume the price will increase and don’t assume a realtor is always the best bet. The most important thing is that you gather as much information as possible and make an informed decision about selling your property. A great first step is to call up a real estate investment company and talk to them a bit about their services and how they operate. Investors are happy to chat with you for free to see if they are a good fit. Selling your property to an investor is not for everyone, but it is right for many. Decide if it’s right for you.
This is a post from our good friends over at GoldenOpp Real Estate Solutions LLC
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