Selling your home to an investor should be a smooth and relatively simple experience. You should not have to spend weeks fraught with the emotion and stress of whether the transaction is going to close or if you made the right decision. After all, that is why you would choose to sell your property the non-traditional route, right? Selecting the right home buyer makes all the difference in the world. Look for the following qualities when interviewing a prospective home buyer to eliminate the uncertainty:
First of all, did the investor ask you questions about your unique situation? After all, everyone has different needs and reasons for selling. It is important information to the investor to fully understand each scenario that they encounter. Did he or she clearly explain their process to you? Setting real expectations up front is extremely imperative and a good home buyer will do just that.
Is the investor knowledgeable about the market, your area, and potential cost of home repairs? The home buyer should be making an educated offer for your property. He or she should know where they need to be when making the offer. Many variables go into purchasing a property. Condition, location, and market timing should all be considered. Additionally the homeowner needs to be realistic in their expectations of what the offer should be. Remember, an investor does not pay retail price. If that is what you need as the property owner, it would be wise to sell your home on the open market with a real estate agent.
Remember what mama used to say? If it seems too good to be true, it probably is! That old cliche has never rung more true than in this business! Beware of a home buyer that offers you the moon for your property. The highest offer is not always the best offer. There are many investors that will offer a premium price for your property, only to get it locked in under contract. Their contract will include a ‘subject to’ clause and/or option period that will give them the ability to come back to you after an ‘inspection’ to renegotiate the terms (sale price) of your contract. An honest investor will purchase your home ‘as-is’ with an inspection for due diligence purposes only.
It’s important to do your own research before calling a home buyer. Have a realistic expectation of what your property is worth. Be aware and honest about what repairs your home is going to need. Make sure you listen carefully to the investor who is making you an offer. Ask yourself if he or she makes you feel comfortable and confident in choosing to work with them. In doing so you will weed out possible disaster!
In the next post, we will discuss the very important difference between a ‘wholesaler’ and a ‘fix-n-flipper’.