11 Jul 9 Key Questions When Choosing an Investor to Purchase Your Home
So you’re looking for an investor to purchase your home – but where to begin?1
Let’s start with an obvious one – EXPERIENCE. How many years of experience buying houses does your potential investor have?2
Who wants to hassle with a large national firm that doesn’t know the St. Louis from a hole in the wall? Is your potential investor with a local firm?3
A huge pro to selling your home to an investor is that investors don’t need to wait for the financing and therefore can wrap up deals faster than traditional buyers. One question still remains – Has your potential investor extended a CASH offer on your house?
To take item one a step further – Has your potential investor shown you PROOF of CASH FUNDS?4
If you’re looking to sell your house fast, there’s a chance you’ve defaulted on your mortgage payments. Most investors are able to offer rather flexible arrangements, which can really help you out in a financial pinch. Core Properties offers help in all kinds of difficult situations since we are the professionals in the real estate business. For example: if you seek foreclosure prevention, our experienced short sale process will help you avoid foreclosure. Do you know if your potential investor is willing to take over your mortgage or offer other flexible arrangements?5
Oftentimes if someone is looking to leave a house the last thing on their mind is updates and repairs. Luckily for those with neither handyman qualities nor the extra cash needed for hefty upgrades, most home investors are willing to take a property off your hands ‘as-is’. Is your potential investor buying your house in ‘as-is’ condition?6
Real estate investors should ensure that an As-Is house sale is the right fit. Has your potential investor requested an appointment to meet and discuss if selling your house is the right fit? There are numerous questions that should be asked and answered before this type of relationship is pursued and before an appointment is scheduled to view the property. No one enjoys wasting time, right?7
Standard considerations for determining the price an investor will offer for a house include the home’s condition and the extent and cost of required house renovations, the estimated time needed to complete said renovations, and the projected after repair value of the house compared to other houses in the area. How will your potential investor determine the price they will offer for your home? If you’re interested in some insider info on determining home value, check out this article from Investopedia: ‘How to Value a Real Estate Investment Property.’8
Some real estate investors purchase houses/properties with the intention of completing the rehab themselves and then selling it to an end-user. Others are simply looking to mark up the price and sell to a flipper. The reason this matters is that the former is able to cut out the middleman and pay you top dollar when you sell your house. What does your potential investor plan to do with your home?9
Has your potential investor expressed to you that you are under any obligation whatsoever to sell your home? Real estate investors should appreciate the opportunity to make an offer on your home. It is entirely your decision to accept or decline the offer.