Selling Your Home to an Investor: The Pros & Cons
Posted by Garman Group on
If you've put your home up for sale and received an offer from a home investor, you may be wondering if it's something you should consider or not. Or possibly your home isn't even for sale, but an investor has come knocking on your door to offer to buy your house. We'll weigh the pros and cons of selling your home to an investor.
It's generally a quick sale. Investors are typically looking for houses for sale that they can quickly fix up and flip, tear down, or rent out, so they're not going to spend a lot of time making sure your home fits their personal needs. Most investors won't even bother to get a home inspection or put any contingencies on the sale.
Your home is sold "as-is." If your home is in a bit of disrepair and you don't want to spend a lot of money fixing it up for sale, selling to a home investor is a way to quickly and easily get it off your hands.
You'll get your money fast. Quite a few home investors will offer cash as an incentive to sell to them or get a money order into your hands quickly. You won't have to wait for potential buyers to secure funding.
You may still be able to live in the home. Perhaps you're running behind on your mortgage payments or feeling like you can't afford the necessary repairs selling your home. Finding an investor willing to rent your home back to you after the sale could work out for both parties.
You may get less money than you expected. Investors are always looking for a good investment at a low cost, so chances are they may give you a lowball offer. Their offer may even consider the cost of all the repairs that must be made once they own the house.
Your home may change drastically. Investors aren't required to state what they're going to do with your house once they own it. Often investors will buy houses for sale simply to tear them down or renovate them into suites. If you would have trouble seeing your family home changed drastically right away, consider selling it to a family or someone who will likely continue to live in it how it is.
The sale could take longer. We realize that we mentioned above that the sale would likely be quick. However, if you're dealing with a foreign investor, the transaction could take a lot longer to complete due to international legalities.
It could be a scam. It's not uncommon for people to pose as investors who will offer you a quick sale and a fake cashier's cheque. These are often done by someone working online or through an unrepresented seller. This would leave you in a difficult position, financially and legally.
Working with a qualified real estate agent — like us at the Garman Group — will protect you against any potential scams. We know what to look for when it comes to investors putting in an offer, and we can help you weigh your pros and cons for accepting an offer. Please contact us today with any questions about home investors, buying or selling a home, or finding out what's going on in Victoria's real estate market.