Selling your house to an investor is very different from selling to someone buying your house as their next home. Weigh the differences before deciding which way to go.
Crowley TX Cash House Buyers: Perhaps you’ve heard about investors that buy homes for cash. Some of them even advertise that they buy ugly houses. What’s the difference between those buyers and a traditional buyer that comes to you through MLS or other real estate listings? There is a vast difference between the two.
The biggest difference is in the fundamental reasons for each to buy a house. The investor buys houses as investments. They buy them, fix them up, and then resell them or rent them for a number of years. The regular buyer will instead buy your house because it’s where they will move in and call it their home. Home buyers need the house to be in great condition as they plan to move their furniture in, unpack the pots and pans, and begin their life in a new home.
The biggest difference is in the fundamental reasons for each to buy a house.
With that as a basis for purchase, you will need to fix your house up, repair appliances and flaws, and replace any part of the house that must be replaced for the new buyer. If you sell to an investor, they count up their costs of doing those repairs and replacements and then make you an offer based on that number. If you don’t have the means, energy, or time to do the necessary repairs for a home buyer, consider selling instead to an investor who will not require that any of these things be done by you before the contract is signed.
Another big difference between the two types of buyers is that a home buyer will expect you to provide contracts, counter offers, and other legalities necessary for closing the deal. You will also need to provide inspection, appraisal, and anything else required of a seller depending on where your house is located. An investor will usually take care of all of those details for you. They usually don’t require appraisals and inspections as they often have their own means of funding for house purchases.
- The investor buys houses as investments.
- They buy them, fix them up, and then resell them or rent them for a number of years.
- Home buyers need the house to be in great condition as they plan to move their furniture in, unpack the pots and pans, and begin their life in a new home.
The fees that you will pay if you sell through traditional means and to a home buyer may include the percentage you’ll owe in commissions if you hired help to sell the house, the listing fees and filing fees if you sell on your own, or perhaps a commission to an agent representing a buyer who finds your house for them. Investors don’t charge fees or commissions and do most everything from start to finish on closing day.
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Real estate Investor, Broker, and private money expert. Adventurer that lives life to the fullest. John is also the author of Attracting Private Money Lenders & 17 Vital Keys To Creating Wealth While Building A Profitable Real Estate Investment Business.
Attracting Private Money Lenders: And 17 Vital Keys To Creating Wealth While Building A Profitable Real Estate Investment