If you’ve noticed the signs out in the community around your neighborhood, you’ve probably seen the potential benefits of selling your house to a private investor. Many of you have undoubtedly seen the ads on the Free Ads website or around town: Buy Homes, Houses, Cash-Dumps, NO RESERVE–what does this all mean? And if you’re like most seasoned home sellers, this could be your very first experience dealing directly with private investors.
Privilege is the power of money given directly to an individual person. It can take many forms, but generally it means that a private investor will offer you “cash”, which is defined as all or part of the selling price of your home. So what are the pros and cons to selling to an investor? And should you even consider selling to an investor?
Pros Of Selling To A Private Investor As we’ve already mentioned, the main pros of selling your home to an investor are that you can receive 100% of your investment in your home, and it is usually tax-free. This immediately boosts the selling power of your home by leaps and bounds. The more cash you have to work with the quicker you can sell your home and pocket your profit. Your home will be priced much higher than if you were selling to a standard home buyer; therefore you will get more for your home and it will probably fetch a higher price on the open market when you list it.
What are some of the cons of selling to an investor? One of the most obvious is that the majority of people who invest in property don’t have the financial means to actually purchase a house themselves. Even if they did, they probably wouldn’t be able to come up with the kind of money needed to pay for a home. This makes investors a risky group to work with. However, if you play your cards right, you could very well end up with a substantial chunk of your investment back.
If you decide to sell to an investor, you will probably need to put down a large portion (close to 80%) of the total selling price of your home. This will obviously need to be paid before the investor can walk away with any of your money. This has to be sorted out beforehand or you will run into problems with the investor. Some investors may insist on holding onto your property and you could find yourself in serious financial problems if this happens.
There are a number of different ways you can go about selling your house to an investor. You can do it yourself, find a professional company to handle the sale for you, or approach a reputable property agent who deals with this type of transaction on a daily basis. Whichever way you choose, it’s important to research each option so you can make the best decision. Selling a house to an investor is not as difficult as some people may make it seem, but you do have to take into consideration your needs and circumstances.