Neighborhood News & Market Trends

Should You Sell Your Home To A Real Estate Investor?

Many investors will use a percentage of the final sale price as a guide to the offer amount. This gives the investor an incentive to make sure the house is a good value. A percentage of the house price can vary from the standard 3-5 percent, but a standard rate for a 30-50 year old home in the area should be 3.5-5 percent, or $9,000-15,000. Even if you aren’t quite the right age to buy a house, investors will generally consider you an upgrade. For example, a 51-year old investor will often be more likely to give you the extra amount than a 36-year old investor.

Asking someone to pay up to 5% of the sale price is to ask them to pay 5% of the current market value of your home in a few short weeks. The transaction can sometimes take 10-15 minutes. The investor is probably thinking that this amount is asking a lot. They may say, “I really can’t put that much money in the house. I can pay as much as I want.” Many people would much rather be out of the house that much quicker than keep their home in a moldy state and have to fix it up at their own expense. Investors are going to be more open to making an offer if you are ready to accept the offer, because if they don’t pay it, they don’t have to worry about any future debt or interest payments.

Should You Buy a Home to Fix It Up? Unless you are a first-time buyer in a very good location, most investors prefer to buy a house to fix it up and live in it. You can rarely save enough money to fix up a home. In most cases, a buyer is responsible for the insurance, repairs, maintenance, and the periodic payments of property taxes and insurance. Once you buy a house, the house is your responsibility and nobody else. The house belongs to the owner for the lifetime of the home, and the purchase price is more than the selling price. As mentioned earlier, this can be a very attractive strategy for new investors. Simply put, it would be a buyer’s market. All other things being equal, owning a house in the right location at the right time can be a better deal than other properties that have a fixed price. Sell My House 7 can help you to find cash buyers in Georgia, their team can help you assess your situation and find an agent who’s experienced at selling homes quickly in Georgia.

One of the other reasons that investors prefer to buy a house to fix it up is that they can raise the cash for those repairs. There is no sense in paying a couple thousand dollars for a house to clean it out, fix the electrical, roof, and exterior, and never seeing it again. It may be good for the property, but it is no return on investment. As long as your home meets a certain standard, you are not paying for it to last forever. A home buyer who owns their home and fixes it up regularly will see the value of their property go up substantially. Since you are investing in a home, many investors prefer to take care of the property before they invest. While it is true that the house is theirs for the lifetime of the home, in most cases, property maintenance will be left to you and the owner. It is more likely that your house will be lived in by someone else for 10 or 15 years than it is your home that stays in good condition.

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