One of the most traditional ways to sell a house is through a real estate agent. Nowadays, another emerging trend in the housing market is to sell through an investor. It is not uncommon to see advertisements and signs showing that an investor can buy your house for cash.
But like many home sellers, dealing with a real estate investor is perhaps an unfamiliar process for you. And since we understand that with sufficient information, you can make the right decision, we will discuss the advantages and disadvantages of selling your property to an investor.
What are the pros if you sell your house to a real estate investor?
One of the primary benefits of selling to an investor like https://www.usawebuyhouses.com is the opportunity to take advantage of flexible payments. Aside from cash, you can also get paid through certified funds or have the company assume your existing mortgage. Since these companies have significant capital, they are capable of paying in full and in cash by the time you close the sale. Moreover, these companies may even offer additional services at no extra cost to the seller.
Another benefit of selling to a real estate investor is that you can sell your house as-is. The reason for this is that investors buy homes to renovate and resell them at a higher value. As such, there is no need for you to make any improvements out of pocket. This option is excellent if you are in a hurry to sell your property, such as when you are moving out of state or have a new job waiting for you elsewhere.
Closing on a sale with an investor is also faster than putting your house on the market or working with an agent. Since the sale will not involve appraising the property, conducting home inspections, or waiting to get approved for financing, the investor can complete the sale in as little as one week.
Lastly, it is also possible to negotiate with the investor in case you haven’t found new accommodation before the sale. Selling to an investor means you don’t need to prep your property constantly for viewings.
What are the cons of selling to an investor?
Now that we’ve discussed the benefits let us now look into the potential challenges of selling your house to a real estate investor. First, selling your house without making any improvements means you cannot charge higher than the current value. As such, you are not likely to make any significant profit from the sale. But since the investor is also taking a risk in buying a house for cash, the trade-off is quite fair.
The increasing popularity of real estate investors can also mean that there are less-reputable companies out there. If you want to avoid getting scammed, you need to check the credentials of the company you’re dealing with. Always take the time to check for references, view online reviews, and verify the reliability of the company before deciding to sell your house to them.