What Situations Warrant Selling to A Cash Home Buyer? When is it NOT a Good Idea to Sell to an Investor?

by | Oct 20, 2017

For many of us, the prospect of selling directly to an investor is met with some skepticism. For one, there are legitimate examples of investors who earn the title “scammer” or “low-baller” because as with any industry, there are some people who don’t play by the rules. For two, it’s not the traditional route to sell a home and many people simply don’t understand how the process works. Confusion or lack of understanding can easily translate to mistrust. This is exactly why we focus a lot of our efforts as a company on educating homeowners about their options in selling, and how this process is great for some, but also not great for others. If you’ve found yourself tempted to speak with an investor buyer like us or are simply not sure about whether it’s a viable option for you, I hope you enjoy this article. We’re going to break down exactly who benefits from working with someone like us, who doesn’t, and what situations warrant selling to an investor.

When Your Property is Distressed or Needs Repairs

The two primary factors that can dictate your route and need to sell are 1) the condition of your property and the market it’s in, and 2) an event that changed your personal life and is driving you to sell.

If your property hasn’t been updated for years and you find yourself in a home in need of many repairs, this is what we call a “distressed” house. Some examples of this could be a cracked foundation, mold problems, or maybe the house just hasn’t been upgraded since it was built in the 60s. All of these things relate to the condition of a property and ultimately can make it hard to sell your home on the market traditionally. Most buyers, especially, first-time homebuyers, will be turned off or scared of a property that requires TOO much work. Because let’s face it, buying a home that you’ll need to invest thousands of dollars into is scary. Especially if you don’t really have a real estate or construction background. If your home is distressed or in need of major repairs that you can’t afford OR simply do not want to deal with, then selling to an investor is a good option. Investors look specifically for homes that need more than a little TLC because their ultimate goal is to use their resources (like an in-house construction company as we have) to add value to the property and bring it up to “market expectations.”

So, whether your home is in need of repair or has been overrun with stuff…or maybe even animals, its condition doesn’t have to dictate whether you’re able to sell. While a traditional buyer may not be able to see the opportunity in a home that visually has been overrun by infestations (for example), an investor will.

When You’re in a Time-Sensitive or Stressful Situation

Another primary driver in selling to an investor depends on the situation you are in. Life happens. When life happens and you don’t have the time or energy to prep the home to sell, list it, and wait through open houses and showings to sell, you begin searching for alternatives. Selling directly to a buyer is one of those alternatives. The two biggest differences between selling to an investor and selling to a traditional buyer are that 1) Investors have the capital and the resources to purchase your home (that means less hassle and stress, and no worrying about your buyer obtaining financing) and, 2) Investors can move as quickly as you need…no waiting months for escrow to close. For some, this is exactly the solution that they need and are looking for. The fact that you don’t have to pay any fees out of pocket for agent commissions or closing costs is the cherry on top.

We’ve helped homeowners in really any kind of situation, but some of the situations we see often are:

  • Divorce and the spouses want to sell their assets as simply and quickly as possible.
  • Financial struggles and homeowners need to sell before they fall too far behind or risk going into foreclosure.
  • Loss of a loved one, and maybe a spouse or family member inherited a home that they can’t keep or maintain.
  • Landlords, who might be tired of being a property manager and no longer want to deal with tenants.

The list really does go on and on. But, ultimately, selling direct can be a good option for anyone who needs to sell fast or is looking for a simpler solution to selling that will ease the stress and pressures that come along with any real estate transaction.

Is Selling to A Cash Buyer in My Best Interest?

At this point, you may find yourself either thinking “that’s exactly the situation I’m in,” or maybe “that doesn’t apply to me at all.” So for those of you who aren’t in situations that include: property being in rough shape, you’re in a hurry, or you don’t want to endure the hassle…then selling directly to an investor is probably not for you? For example, if your home is in good condition and only needs a few minor upgrades, and you’re not in a hurry to sell…you should list the property on the market with an agent. Our home buying specialists will tell that to a homeowner every single homeowner to do just that in this situation. Yes, you will have to pay closing costs and commissions, but you will also find a traditional buyer who is willing to pay the market rate for your house. We live in San Diego where we’re still in a seller’s market, so you will be able to get top dollar for your house today if you list it. If this is the case, you can still give us a call and we will refer you to an agent we trust who can get your home sold.

Not sure whether you should sell to an investor?

If you still aren’t sure which route is best for you, that’s okay. This is likely one of the biggest decisions you will make with one of your largest assets, so explore all of your options and do your research. If you call a home buying specialist, we will ask you questions to identify which method is right for you and will HELP you get there, even if it means that you don’t sell to us. So, calling in to learn more about the process and to receive a cash offer certainly won’t hurt. There’s no risk or harm- we’d be happy to help you explore your options.

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