4 Misconceptions About Selling a Home to a Real Estate Investor

If you’re selling a home, you’re probably pretty familiar with how the process of selling through a real estate agent works.

But are you clear on what’s involved with selling a home to a real estate investor?

Probably not. And it’s not your fault.

There are a ton of blog posts and videos out there about selling your home with a real estate agent, but there are very few about selling it to an investor.

So, it makes sense that there’s a big lack of understanding on how real estate investors operate.

And it’s unfortunate, because depending on your situation, selling your home to one can be advantageous.

We’ve cleared up 4 common misconceptions about selling a home to a real estate investor below – that way, you can make an educated decision on how to sell your home.

  1. They Always Pay with Cash

While a lot of real estate investors pay cash every time they buy a property, there are some who can offer other types of deals such as owner financing, enabling them to pay up to 100% ARV.

  1. They Give Low Cash Offers

While a cash offer from a real estate investor may seem low, you have to take all the things you won’t be paying for into account: repairs, appraisal costs, inspection reports, seller concessions, and real estate commission (typically 6%). When you factor all that in, the deal is typically close to what you would net selling the home through an agent.

  1. They’re Dishonest

In actuality, there aren’t many dishonest cash buyers, but there are a lot of inexperienced ones. Cash buyers who went to some seminar and decided to give it a go often make big mistakes, which can end up costing you money.

They also tend to make really low offers because they have to leave a lot of room for error and don’t have the right connections in place, or do enough volume, to get discounts on things like escrow fees and repairs.

An experienced, professional home buyer knows how to make the selling process seamless for you and will do all they can to make it a win-win situation. That’s why you always want to find out how long the investor has been in business and check for markers of success, like testimonials.

  1. Investors Only Buy Properties that Need Lots of Repairs

Real estate investors often purchase homes in good shape from people who need to sell quickly, whether it’s because they’re facing foreclosure, have medical expenses, are relocating for a job, or have some other urgent reason.

Want to learn more about how selling a home to a real estate investor works? Click here or fill out the form below.

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