Quick Overview – 3 Situations You Should Not Sell to a Home Investor
We have all seen the internet ads or mailings that say, “We’ll Buy Your House for Cash Fast”. These advertisements are from investors that buy houses. These professional buyers usually buy the house “as-is”, pay cash and are flexible on closing date. For several situations, investor home buyers are a great solution to selling a house. This video describes 3 Situations You Should Not Sell to a Home Investor.
I’m Michael with sellmichaelyourhouse.com in Cleveland, Tennessee, and I’m here today to tell you about three situations where I don’t think it makes sense for you to sell your house to a cash home investor.
Situation #1 – House in Great Shape
The first situation is, you got a house and it’s in great shape already. Doesn’t need to be painted, doesn’t need to be fixed up, and you’ve taken really good care of it.
In this case, people in the Chattanooga/Cleveland market that we’re in right now, the market’s so high you can list the house with a realtor and you’re probably going to be better off by the time you pay your realtor commission than you would be selling it to a home investor. If you don’t want to pay a full service realtor. Consider using MLStosell.com. This allows you to list on the MLS, but act as your own selling agent, which will cut the realtor commission from 6% to 3% of sales price.
Situation #2 – Not Motivated
The second situation when selling to a professional house buyer doesn’t work is if you’re not motivated to sell your house. If that’s the case, and you’ve got plenty of time to sell it, you’re not in any big hurry, you’ve got lots of money…. You’re probably going to be better listing it with a realtor or listing on somewhere like mlstosell.com and being your own agent.
Situation #3 – Home Improvement Weekend Warrior
The third time I don’t recommend selling to a “We Buy Houses” buyer is if you’re a weekend warrior home improver. If you like doing Do it Yourself projects and you’re pretty handy or you’ve got a lot of friends and family that are handymen and carpenters, you can save a lot of money on it and you’ll come out with more money.
The reason that is, is because in order for a home buyer, a home investor, do to that they’ve got to make a profit for doing the work they’re doing. They’re probably going to be with your property for three months to twelve months from the start calling you until they sell, so they’ve got to make a profit for that. And then they’ve also got to be able to pay somebody to do their repairs, and then they’ve got to have some sort of margin of safety for things that they don’t see that end up coming up in the process.
Who Benefits Most
The typical home buyer that benefits the most from a home buying type of service is somebody that’s either inherited a property or they’ve got a property that’s got deferred maintenance on it. It needs some work done on it. Maybe it needs 10, 20, 30, $50,000 worth of work, and they just don’t have the time or the money to make the repairs on their own. They don’t want to fool with that.
What you’re really paying for when you get a We Buy Houses for Cash services is getting somebody that’s going to be very dependable, professional, and give you the certainty that your house will be sold and your problem solved. When they sign a contract with you, you are 100% confident they will deliver on their promises. The professional home buyer should it super easy for you… They should treat you well, and you can count on them to do what they say.
How to Find out More
If you’re interested in selling your house, feel free to go on our website and fill out a form, and we’ll give you a call back and see if we can’t buy your house.