Most homeowners sell properties within the complex system of mortgages that structure our mainstream real estate system. They likely already have a mortgage on the home they’re selling, and they expect to sell to someone else who has also applied for a mortgage. Overall, selling for cash is uncommon – but sometimes it’s the best option.
If you’re trying to sell your home more quickly, have a home that has significant damage, or you’re facing a crisis situation where you need cash immediately, your best option may be to sell to an investor. In these 4 circumstances, in fact, investors are you best friends.
You Can’t Make Improvements
One common reason that people choose to sell their homes for cash is because they can’t afford to make the necessary improvements to sell the property in a competitive market. Instead, in exchange for cash-in-hand, you can sell your home as-is to an investor who is prepared to make those improvements. The ability to sell your home as-is actually is the primary reason that individuals may take a price cut; any decrease in price is really a calculation of how much more money the investor will have to put into the property to resell it.
You’re In Foreclosure
For homeowners, foreclosure is a worst-case scenario, and at the peak of the housing crisis it was a common occurrence. While far fewer homeowners are in foreclosure today, it does still happen, but investors can help you climb out of that financial hole.
Cash buyers often target homes in foreclosure because purchasing these homes works to everyone’s advantage. The investor takes on the debt burden of the property and you walk away with the cash you need to find an alternative housing situation.
You’re Getting A Divorce
If you’re getting a divorce and need to split up your assets, selling your home for cash can be a far easier strategy than selling it via more traditional routes – and you’re also more likely to get a good price. As noted regarding “as-is” properties, any price reduction reflects the work a home needs. If you’ve got a nice home that’s market ready and you’re just selling because of a family emergency, don’t be misled by myths about investors. You’ll get a competitive price for that property; plus, you’ll be able to get on with the process of dividing your assets without delay.
You Want To Cut Costs
There’s a lot of debate about how much sellers actually save by working with an investor rather than selling through traditional sales venues, and it’s true that homeowners should pay attention to the numbers. Depending on your home’s condition, the individual investor, and other factors, the amount you save will vary. And of course, you can’t avoid certain fees, such as transfer taxes when you sell a home. What you can avoid, though, are big commissions. Typically, homeowners pay 5-6% in commissions to the agent after a sale.
The fact is, while most people are conditioned to expect that they will work with a real estate agent when selling a home, that doesn’t have to be the norm, and it isn’t right for everyone. Before you sign on the dotted line with an agent, then, take a moment to evaluate what your needs really are. You might be better off working with an investor and selling for cash, and you’d be in good company by going that route.