When you need to sell your home, the fastest solution is to sell your home to a cash buyer or a real estate investor. Home investors buy your home on an as-is basis—saving you from spending money and time on finding an agent, listing and staging your property, and negotiating with multiple potential home buyers.
These tips will help you navigate the process of selling your home to an investor.
Selling to investors is a great choice for those who want a hassle-free transaction. However, finding a credible buyer is crucial, as there are definitely some bad apples out there.
Some companies target sellers who are less informed and offer cutthroat rates—way below what you’d expect to get from other cash buyers—to take advantage of distressed homeowners. Others claim to be buyers but will only sell your personal details to third parties.
To avoid scammers, conduct your own research. Ask them questions about their services, previous transactions, and other relevant details to ensure you’re making an informed decision.
2. Check Their Qualifications
When you shortlist potential investors, make sure to look into their credentials and qualifications. Here are some questions to ask before you make your choice:
- Are they a member of reputable organizations such as the National Association of Property Buyers? The easiest way to determine this is to check for the corresponding logo on their website.
- Are they accredited by agencies such as Better Business Bureau? If they are, it’s a sign that they’re trustworthy and have a reliable track record.
- How long have they been investing in properties? Investors who have been buying and selling properties for several years are more knowledgeable about the legal implications of these transactions, so the sale can be completed quicker.
- Are they an actual investor? Some companies advertise themselves as real estate investors or cash buyers when, in actuality, they’re nothing more than agents or listing services.
Always make sure you’re dealing directly with the investor, as this will help guarantee the sale.
3. Contact Their References
Before deciding to sell to an investor, check what other homeowners think about them. You can do this by asking them for references or reading through their online reviews.
Some online review platforms you can refer to are Google Reviews and Trust Pilot. Honest reviews will contain the real name of the homeowners and provide specific details about the investor and their dealings with them.
4. Choose a Local Investor
Local investors, like any other local business, are definitely more preferable to investors located in a distant location. Here’s why:
- Local investors know the area and have first-hand information about your neighborhood and local regulations.
- Local investors don’t need to spend as much time determining the value of your home.
- You can easily meet with them to discuss the specifics of the transaction.
Before making the call, check their website to see where they’re based. Remember, a registered physical address is also good proof of the investor’s legitimacy and trustworthiness.
5. Look Into Their Valuation Process
Before buying any home, a reputable investor will take the time to conduct a home valuation by working with valuers or surveyors. This process will also ensure that you’re getting safe and accurate information about the value and condition of your home.
Always make sure that they’re tapping into RICS-qualified surveyors for the valuation process. Otherwise, you’re likely to get an offer that is heavily biased in their favor.
6. Don’t Expect to Get the Market Value for Your Home
Don’t expect to receive an offer matching your home’s market value. An investor will almost always offer a price that is significantly below the property’s market value.
Most investors and real estate companies have to pay a higher stamp duty than private buyers. On top of paying for legal fees and costs before reselling, investors would be operating at a loss if they offered market value for the properties they’re buying.
7. Make Sure They Cover Fees
Any reputable investor covers all the fees related to the transaction, including estate agency and legal fees. More importantly, don’t pay anything upfront even if it sounds legit. Legitimate investors won’t ask for application fees or any other type of fee from home sellers.
8. Don’t Get Emotional
When you’re selling your home, especially if it’s your first home, it’s easy to get too attached and emotional about the process. After all, you spent a lot of time and money building and making it just right for you and your loved ones.
However, once you’ve decided to sell, you should stop thinking of yourself as a homeowner and consider yourself as a business person instead. Distance yourself from the process and only look at it from a purely financial viewpoint.
Selling to an investor, in particular, can make you feel you’re not getting the full value of your home. However, you should also think about how much you’re saving on agent fees, contingency clauses, repairs and renovations, closing fees, and other expenses associated with the traditional home selling process.
Finding the Right Investor
Selling your home doesn’t have to be a stressful and time-consuming process. By selling your home to an investor and following the tips above, you can make the transaction easier and more cost-effective for you.
Trust is key when selling your property to a real estate investor, so only sell your home when you know you’re dealing with a legitimate and qualified company. Our company has been around for years helping homeowners just like you sell their homes faster at a fair price. Call us now to see how we can help with selling your home.