Have You Considered Selling Your House to a Real Estate Investor in Houston? Learn The Pros and Cons
Updated: Apr 29, 2019
I bet that many of you have probably seen the signs around town that says: “Big Joe Buy Houses Cash” or “We Buy Houses FAST.” If you’re like most home sellers, this may be your first experience dealing with investors, cash investors. We know that knowledge empowers the best decisions, so here are the pros and cons of selling to a real estate investor.
1. More flexible payment options.
You can take advantage of benefits that exist for people selling a house to a real estate investor... Certified funds, cash, scheduled cash payments, and assumption of your existing mortgage payments are available payment methods, among others. Most investors who buy houses fast, including re known Big State Home Buyers, are able to pay cash in full at closing, and may also offer other services at no out-of-pocket costs.
2: You can Sell “as is”.
Real estate Investors in Houston buy homes “as is” in order to flip them. You, as a seller that plans on selling a house to a real estate investor, this allows you to avoid any costly repairs that would normally be considered your responsibility. If you know you cannot afford to repair or stage your house yourself, then you might consider selling house to investor.
3. Closings are... Fast!
Some investors can close in as little as seven days because the sale of the property does not rely on approved financing, appraised values or home inspections. Being able to skip all of these steps speeds up the process. We regularly close in less than a month, and some other investors offer the same fast service.
4. You Do Not have to move before you sell.
Unlike with a realtors representing the interest of their firm, you can negotiate so that you do not have to move out of your home before you sell it. The house does not need to be clean or “show ready” for months on end while waiting for a buyer. When you do find a buyer, you also don’t have to be out of the house until you sign the contract. Even then, you can almost always negotiate a lease-back agreement with your buyer, meaning you can have the equity you need out of your home before you move out.
So now let's look at the Cons of Selling a Home to a Real Estate Investor
1. You will Sell below market value.
If you are considering selling a house to a real estate investor, it usually sells As-is And below market value.
Real estate investors are aware of the advantages behind their cash offer as well as the risk they assume by purchasing “as is.” The discount is necessary to sell a house quickly and reflects the “price” of a quick sale. Investors also have to pay closing costs, repairs, holding costs, and back taxes, and offer enough for you to consider it fair. Watch this video explaining why you would not want to sell to an investor.
2. Beware of Scam artists.
To avoid scam artists posing as investors, get the name of the investor and research online to know more about them. Ask for references. While this is a start, you can actually do a lot yourself to make sure you are working with a credible and reliable company.
3. Investors not necessarily need a license to buy.
Because investors aren’t representing a buyer or a seller in the transaction and are only representing themselves, It’s true that they do not need a license. Some investors are corporations while others are individuals buying and selling on their own. Do not decide on a company to sell your house to without researching them. You can also ask about their experience and credentials, and a reputable buyer will deliver.