If you are selling your home, you want to market it to as many buyers as possible. That means reaching out to investors as well as the average home buyer. The Atlanta area was one of the top areas for institutional investors in 2013, according to RealtyTrac, meaning that you might miss a chance for a good sale if you aren’t reaching out to those buyers.
The process of investors buying your home is a bit different from the process for general buyers. Investors typically find listings on For Sale by Owner sites. That is why it is so important to use a listing agent, like Rhonda Duffy of Duffy Realty, who advertises her clients on both For Sale By Owner websites, as well as the Georgia MLS and First Multiple Listing Service. Investors also typically have different expectations for the home and will use different forms of payment to make your home theirs.
Cash is king
In August of 2013, cash sales of homes increased to 49 percent nationally, the highest level since March 2012, according to RealtyTrac. The increase in cash sales was due to the increase in purchases by investors. Having an investor pay you cash for your home can be beneficial in a few ways. You don’t have wait for the investor’s financing to be approved, which speeds up the closing process. Getting cash for your home also means you don’t have to worry about the property getting a low appraisal or worry that there will be an issue that causes the financing to fall through.
Fewer demands on seller
Another benefit of investors buying your home is that they typically make fewer requests to the seller. A regular homebuyer might ask you to fix up a broken furnace or air-conditioning unit before they will move forward with the sale. Investors, typically investors who plan on flipping the house, or selling it again within six months, will usually accept the house as-is. When you’re trying to sell your current home and get ready to move into or buy a new one, not having to worry about any issues with the home you’re selling can help you breathe easier.
Cost of the home
Investors will usually offer you less for the home that you were hoping to get. Depending on the type of investor you sell to, you might get an offer for half of the home’s value, according to the Washington Post. Investors are less likely to buy your house for the full value because they hope to make some money from it, either from fixing it up and reselling it or renting it out.
Paying cash and agreeing to buy the house as is are a few of the ways investors try to sweeten the deal when they offer less than the asking price. It’s up to you to decide if selling the house quickly and getting cash for it is enough to make up for getting less than you had expected.
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