If you have a property listed for sale, it’s likely that you have come across one of the many roadside signs that say ‘We Buy Houses Fast’, or maybe you have received an offer to buy your home from a property investor.
Well, the real estate market has changed a lot over the past two decades, and it is becoming more and more common for the average seller to come across real estate investors.
However, if you are like most home sellers, this might be your first time dealing with these individuals. So, what are the benefits and drawbacks of selling to we buy houses company?
The Pros
Cash Offers
More often than not, real estate investors are willing to pay cash for a property and with the tightening of financial restrictions in addition to the increasing number of complaints regarding low appraisals, getting a cash offer for a home has become even more appealing.
Flexible Payment Options
One of the great things about real estate investors is that they provide an array of payment methods like cash, certified funds, pre-scheduled cash payments and can even take over the current mortgage entirely. With a variety of options available, you can be able to find an option that suits your requirements.
Fast Closings
Most of we buy houses companies can close within seven days, but how is this possible?
Well, since the sale of the home is not dependent on appraised values, approved financing, home inspections, etc. bypassing all these stages quickens the selling process significantly.
Selling As-Is
Another massive benefit of availing real estate investors is that most of them will buy a property as-is.
That means you get to avoid any costly home repairs that would otherwise be considered your responsibility.
The Drawbacks of Selling to
We Buy Houses Companies
They Don’t Need a Licence to Purchase
What this means for you as the seller is that you don’t know anything about the entity or the person who is willing to buy your property.
Some real estate investors are companies, but some are individuals who happen to be real estate agents as well.
This calls for concern because many sellers question the motive behind the offer. Do they want to purchase my house to flip it for a profit? Most probably.
You are Likely to Sell Below the Market Value
Real estate investors have their own costs to deal with, and you can be certain that those costs will be included in the price offer.
These investors are ideally aware of the power behind cash offers and the fact that they’re taking a risk by buying as-is.
That means they will depend on your motivation to close quickly. Regardless of the reason, it’s highly unlikely that a real estate investor will pay market value for a property.
As you can see, there are pros and cons to dealing with real estate investors. Whether you choose to deal with them or not will depend on factors like the need to sell, the time you have as well as your financial situation.
