When planning to sell their home, most people probably assume their only options are to list with a real estate agent or manage a ‘For Sale By Owner’ themselves. Both methods can be more time-consuming and expensive than you think. Fortunately, those aren’t your only options. Selling to a home investor can be an excellent choice for some homeowners, and there are several reasons why.
Selling a home the traditional way can take a long time, even if you use a professional real estate agent. You will need to compile a seller’s disclosure with details about your home, as well as have it staged for photographs, and this is before it even goes on the market! Once you do find a prospective buyer, if they are financing, it will typically take 46 days until the deal can close. Traditional buyers also typically make the sale contingent on your home passing a home inspection, which can create extra hurdles to overcome in the transaction.
On the other hand, developers are usually ready to buy in cash and close the deal immediately. If you need to sell your home quickly, selling to a developer can present significant advantages that a traditional buyer cannot.
Nobody wants to work for free, least of all real estate agents. When you list your home with an agent, you will typically owe a commission based upon a percentage of the selling price. Usually this is around 6%. But if you think selling by owner is the answer – think again! While you may be tempted to try and sell your home to a buyer on your own, FSBO’s usually sit on the market longer, costing you more in mortgage repayments and taxes in the long-run. Not only do FSBO’s take longer to sell, but you also have to market the property yourself and vet prospective buyers. All of this costs time and money.
Most developers do not charge you fees for buying your home. You should not have any out of pocket expenses by selling to a developer, and this advantage can be beneficial to a lot of homeowners.
No Renovations Needed
When you plan to sell your home to a traditional buyer, you typically have to make some upgrades and changes before it goes on to the market. For example, refreshing interior paint, creating curb appeal with new landscaping, and even installing a new roof or HVAC system. Not only is this time consuming, but you also aren’t guaranteed that any of your work will be reflected in the sales price. If you aren’t able to recoup your investment, selling your home can be a bitter pill to swallow.
Developers, on the other hand, tend to buy homes in an as-is condition. They are not concerned that the living room is painted lime green, or that there are stains on the carpet from that glass of red wine you spilled a few months ago. When it comes to buying property, investors see the potential of the home. This means that rather than worrying about renovating a home they’re leaving, the seller can focus on their fresh start instead!