Save Money and Time When Selling Your House
If you are considering selling your house anytime soon you need to consider another option than just calling your local real estate agent and putting the house on the market. One option is to contact a real estate investor.
Why Selling Your House to a Real Estate Investor is Wise
The most obvious reason to consider a real estate investor is they are fast buyers. They generally have the cash themselves or have a financial backer and can have the money for the sale in your hands within a few days, not months. In my neighborhood the average home is on the market for 45-90 days. This means if you still have a mortgage you could be paying up to three months mortgage payments and taxes. A real estate investor can usually close a deal within 7-10 days and have the money in your hand. The next thing to consider is that a real estate investor does not charge a commission on the sale. Real estate agents will generally cost you 6% of the sales price (or higher) plus any closing costs. Real estate investors normally cover any costs of filing documents themselves so you pay no closing costs other than taxes owed for that year.
Selling Your House to a Real Estate Investor Saves Money on Repairs
When selling your house to an investor, unless the house is literally falling down,they will not want you to bother making any repairs or upgrades. Once you contact them they will do a quick evaluation of your house to determine what repairs or upgrades are needed to bring it up to comparable homes in your neighborhood. They will then adjust their offer accordingly. Their adjustments may include such things as new flooring, new kitchen cabinets, appliances and counter tops, new windows, painting interior and exterior and landscaping. The offer they make may look as though they are trying to steal your house but let’s consider a typical house that sold for $100,000 twenty years ago. The owner has made no major upgrades and now wants to sell for $125,000. He feels he can paint inside and outside, put down new carpet, do some landscaping to bring it up to market. All of this would run somewhere around $6500 so his total investment is $106,500. He thinks he will walk away with $18,500 profit on the deal. In reality the house sells for only $120,000 because it has a 20 year old roof, 20 year old A/C and furnace, no energy efficient windows and the kitchen is outdated with formica counters and old appliances. The sale takes 60 days so the owner pays for two more months mortgage at $1000 a month, closing costs run $1500 for the seller and the real estate agent takes $7500 in commission. The owner walks away with only $2500 in real profit. The real estate investor knows that a rehab will cost $25,000 so he offers $105,000. His rehab will bring the house up to a value of $150,000 and provide him a profit of about $20,000 (if nothing goes wrong). The owner does none of the repairs or upgrades mentioned so his investment is the original $100,000. He has no commission or closing fees to pay so he walks away in 7-10 days with a $5000 profit. He also did not have to put up with the hassle of potential buyers walking through his home at all times of the day.
In the example above the real estate investor takes all the risk. If he discovers after the purchase that the plumbing or electrical all needs replacing his profits drop. He bought the house “as is” with no guarantees. Selling your house to a real estate investor can be a win-win situation for all involved. If you have a second home to wish to sell, are selling because of a divorce, death or are facing foreclosure, check out one of the real estate investors in your area and see how they can help you sell your house fast, without hassles and save money in the process.