The Truth Behind The Signs
You’ve probably noticed those signs that read “We’ll Buy Your Home Fast!” So who is behind these vague signs? Real estate investors looking to buy your home quickly, for cash.
The rapidly changing housing industry has given rise to these types of real estate investors. They approach home sellers looking to buy their properties. The investor behind the sign will often offer “a quick, cash closing and you’ll probably get someone who will offer you about 50 to 60 percent of what your home is worth in top condition,” according to an article in The Washington Post, “Selling a home to a real estate investor.” Most investors are either a wholesale buyer who will sell your home to a direct buyer or is a direct buyer themselves.
Many sellers are skeptical of selling their house to a real estate investor. Though there are some disadvantages, there are also advantages that sellers should consider before taking the traditional route in selling their home.
According to The Washington Post, the seemingly “cheap” sign advertisements are just another way to keep overhead costs down. “There’s nothing wrong with a wholesaler,” according to the article.
Many investors are willing to purchase a property “as is,” significantly decreasing the stress of preparing your home for a sale and eliminating any costly repairs. Real estate investors are also often willing to pay for your home in cash.
“With the recent tightening of financial restrictions, coupled with the growing number of complaints about low appraisals, having a cash buyer has become even more appealing,” according to an article in Forbes, “Pros and Cons of Selling Your Home To A Real Estate Investor.”
A quick sale draws the attention of many sellers who are looking to move into a new home right away. Investor deals can usually be closed within one week because the sale of the property is not reliant on approved financing, home inspections or appraised values.
With any financial transaction, there is a risk of fraud and scam artists. With home investors, it’s no surprise that there are many con artists looking to take advantage of your most valuable asset. To ensure you are dealing with a legitimate buyer, research the buyer on the Better Business Bureau and ask for references.
Unlike many licensed professionals in the housing industry such as mortgage loan originators and Realtors, investors do not need a license to buy properties.
“This is a cause for concern for many sellers because they question the motive behind the purchase; do they want to buy my home to resell it for more?” reported Forbes.
Lastly, your home will rarely be bought for market value. Investors are taking a risk purchasing a property “as is” along with heavy overhead costs, hence the low-cost advertising road signs.
“Investors have their own costs to contend with and you can be assured that these costs will be factored into their offered price,” reported Forbes.