Few life transitions outweigh the stress of selling a home. You need a perfect alignment of the stars to even hope for fast sale at top dollar.
But there are ways to make the transaction easier without feelings of missing out. Here are the 7 benefits of selling your property to a home investor.
1. Saves Time
One of the easiest benefits to spot when thinking of selling to a home investor is saving time. You’ll save tons of time working with a home investor because most of them already know what they want and have the money to back it up.
Traditional buyers need financing in order to close on the deal. This adds weeks, sometimes months, onto the transaction.
If the home buyer isn’t approved, this sets you back tremendously. But with a home investor, you can count on a solid track record of buying houses with a variety of types of financing.
Some investors even buy homes in cash if they’re able to find a good deal. Cash deals take a fraction of the time as traditional home purchases.
Home buying usually only takes long because the bank needs to vet buyers to make sure their finances are in order. Underwriting takes its time making sure they check and double-check financial records before shelling out hundreds of thousands of dollars in debt.
2. Savvy Buyers
Home investors are also savvy buyers. This works in your favor because you can learn from them during the sales process.
If you’re looking to buy a home again, the investor might have insider information on growing neighborhoods that’s beneficial to your next transaction. Be sure to form a good rapport with the home investor so he or she is more willing to answer any questions you have about the process.
The best time to do this is during price negotiations. Try to find the line between being firm in your pricing and opening the door for further conversations.
If your investor does help you uncover a gem in another neighborhood, be sure to send a thank-you note to keep the relationship going.
3. Credit Boost
If you’re on the verge of losing your home, you can’t afford to risk selling to a traditional home buyer. The time you spend waiting for the buyer’s approval on the loan costs you precious points on your credit score.
Depending on what else is on your credit report, you might experience a drop of 100 points or more when you fall behind on your mortgage payments. A home investor can buy much more quickly allowing you to skip out on future payments before falling too far behind.
4. Cash in Hand
When you’re cash strapped, the concept of moving into another home is intimidating. You need the money from the sales transaction before you can make definite plans about where you can afford to move.
But how can you count on a home buyer to come through with the money exactly when you need to move? The answer is you can’t.
Homebuyers aren’t moving into your home with your best interest in mind. Dealing with a home investor is beneficial because the quick sale means you’ll have cash in hand when you find a place to live.
This means being able to pay rental deposits or down payments without financial strain. You can also plan your move more accurately because home investors close on homes at higher rates than traditional home buyers.
5. Avoid Foreclosure
A foreclosure is a major ding to your credit report. But outside of that, the legal and financial implications can be tremendous.
Some states require a lengthy foreclosure process that brings added emotional strain. Your bank might ask that you repay the debt even after your home is taken back.
This means being responsible for where you live now while dealing with the ghosts of debts past. Avoid the nightmare that is foreclosure by selling your house to a home investor fast.
6. Repairs Aren’t Necessary
Even if you aren’t facing foreclosure, it’s still financially daunting to sell your home. A home inspection might bring up a long list of potential repairs.
The homebuyer’s requests might include other cosmetic items that you hadn’t planned to cover. But with a home investor, you’re usually selling your home as-is.
Investors keep their own budgets for repairs and account for this in their asking price. Their offer price might be lower than traditional buyers, but they have to account for the overhead of repairing homes themselves.
Home investors look for ‘sell my house‘ requests from flexible sellers who are privy to their need to profit from the deal in order to keep their businesses in operation. Sellers who opt to go the traditional route run the risk of having home repairs eat into their profits by realtors or buyers who nickel and dime them until closing.
7. Takes Out Guesswork
Let’s face it. Unless you’re an experienced realtor, you really have no idea how much your home is worth.
The sales price is actually based on what buyers are willing to pay and not how much you love your home. Selling to a home investor immediately lets you off the hook if you’re getting too emotional about the process.
Emotional selling can sabotage good deals and prolong your financial obligation. Take emotions out of the process by working with an experienced home investor.
Selling to a Home Investor
Depending on where you live, it’s possible to get an offer from a home investor online. These home investors are often ready and willing to take your property off your hands before you fall into financial ruin.
Sometimes having an investor buy your home is just the peace of mind you need for a stress free move. For more information and tips, visit our blog for updates.