What’s up with the “We Buy Houses Any Condition” signs and ads I see all the time? The short answer is these people are real estate investors. Why would they be interested in any house in any condition? Full time real estate investors buy houses for a living…it’s what they do. They look at big houses, little houses, pretty houses, and ugly houses. They work with homeowners that have back taxes, back payments, liens, judgments, encumbrances, you name it. Real estate investors are typically a problem solver for homeowners that have an unwanted property that might not be able to sell with conventional means.
For instance, to sell a property on the MLS with a realtor as a selling agent, the house will have to be market ready and comparable to other houses currently on the market. Additionally, the house will have to be in decent shape so that the potential buyer’s lender will actually lend money on the property for the mortgage. Many homeowners can’t afford to wait and don’t have the money for costly repairs to get the house market ready.
That’s where a real estate investor comes into the picture. Consider the following as reasons why it might make sense to contact a real estate investor to sell your unwanted house:
- They can close quickly – typically investors buy with cash..this closing can be 7-10 days using a local experienced closing attorney.
- They buy “as-is” – they don’t mind houses that need repairs and they don’t mind a mess. They buy the house as-is without requesting you to perform costly repairs or clean-up.
- There are no realtor commissions – since they are buying direct from you there is no 3% buyer’s agent fee and no 3% seller’s agent fee. That’s a savings of 6% of the sales price. ($6000 for a $100,000 sales price).
- Depending on the sales price you agree on, sometimes they can assist with moving expenses. This would certainly make the transition to your next home a little easier.
- In most cases, they can cover all of the closing costs. It’s not uncommon for closing costs to reach 3% of the sales price. ($3000 for a $100,000 sales price).
- Privacy – you can simply call an investor and put together a deal directly with them, eliminating the need to publicly market your home and have to deal with all types of buyers, tire kickers, agents, etc.
- To ensure a prompt sell of your home, if you choose to contact an investor, clearly spell out what you are trying to accomplish. Let them know how soon you need to close or how long you need to wait to find another property. Be clear on any major repairs that the house needs. Also let them know of any major back payments, back taxes, judgments or liens on the property. You may choose to try to keep this a secret, however they will perform a title search before closing and any encumbrances on the property will come up and the investor may not have time to act quickly enough to pay for these items and still close at the time you need. Be honest and transparent with the investor so they can help solve your problem.