Selling your House to a Real Estate Investor

Written by: William Garriell

Thinking of selling your house? You must have encountered the option of selling your house through a real estate agent or to a real estate investor. You must have a good idea of the real estate agent’s business. You also have come across the idea of selling your house to a real estate investor. The business tries to market their services in a manipulative way. You cannot make a realistic analysis based on their marketing. Here in this article, we have investigated for you the information and analysis of selling your house to a real estate investor.


So the story goes around like this, you thought of selling your house and you came across a real estate investor marketing ad. You wanted to avoid getting into your house fixation and showing it to a couple of third parties. You thought the idea of selling your house to a real estate investor will save your time and a lot of effort. You were trying to relocate to look for a new job. In short, you were taken away by the offerings of the ad by the real estate investor. But you just need to stop here. Do not get taken away by what they say. We have got a calculated analysis for you.


House investors

House investor is a person or a company that invests in houses by buying them from the first party and selling them as owners. House investors are different from home buyers. House investors are not buying for personal use. In fact, they are buying your house as an investment to sell it later. An individual house investor has a few houses in their business. Companies, on the other hand, would have many houses at a time to sell and buy more and earn a profit. House investment business may be keeping your house waiting for its value to grow. Individuals or companies with many houses buy and sell a few houses at a time with a difference in price to earn a profit. Individuals and companies may just buy your house, renovate it and sell it. They may also buy your house, renovate it and rent it out.






The following are a few pros and cons of selling your house to a real estate investor.

Pros of Selling your House to a Real Estate Investor

Instant Closure

In a normal house sale, the buyer has a period of 45 days called the escrow period. This time is allowed for approval of mortgage contingencies, house inspection, and appraisal. This is not the case with the house investment. Real estate investors offer closure in as short as seven days. This makes it an option for many people. If you are in a hurry to pack your bags and leave for settling in another city or country you might be looking for some hassle-free, time-saving ways. There is when traditional real estate agents fail to help you.

No fixation required

House investors buy your houses in an “as-is” condition. In case your house has some fixation needs you do not have to look into it. Even if your property is destroyed by fire or needs any other major fixation still you can sale it just like that. Whereas, if you are selling your house to a traditional buyer you need to fix it before selling.

Cash dealing

Because all the focus of the house investment business is in saving time involved in house purchase so the transactional dealing is all in cash. Cash transactions are helpful in case your property does not meet the Federal Housing Administration’s standards.

Your choice of timeline

If you are selling your house the timeline is required to suit both parties. This causes unnecessary delays for someone who is already in a hurry. With investors, generally, timeline and closure are of the house seller’s choice.


Cons of Selling Your House to a House Investor

Low Price, Low Price, and Low PRICE

All the hassle you have been avoiding in a transaction with a house investor comes to the point of the sale price. For sure you can sale your house with the need for some major fixation. House investors will also buy a fire- damaged house. It saves you time but not the money. The price offers made by the house investors reflect the fixation, damage repair or other costs that are needed before making a final sale. The house investor has no connection or feelings attached to the house you are selling. It is just another piece of inventory for him. That may not count much for you but still, you may not see a third party excited about buying your house.

Scam possibility

House investors do not need licensing and they deal in cash. This opens a big door for scammers to just advertise and show up as hose investors. Here you need to be careful of scammers.

Despite all the advantages of selling your house to an investor, the deal has some disadvantages as well. These disadvantages generally relate to low price offers. But before moving to the disadvantages you must know the situations where house investors come into a business. These situations include divorce, bad tenants, instant closure, upside down mortgage, major fixation need, fire or other big damage, bankruptcy, relocation, instant liquidity need, etc. These situations make a sale of a house different than a traditional sale. So there is no general comparison of the traditional sale of your house or sale in case of a special need. The decision is to be based on situational analysis.




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Selling your House to a Real Estate Investor

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