You’ll typically receive an offer as soon as a few minutes after submitting a request or within a few days. Not only can a vacant home be a target for vandalism, but if you sit on the property in a fast-moving real estate market, you could be on the hook for capital gains taxes. But sometimes the investor(s)’ intention should be reason enough to give you pause. Sell Your House “As-Is”. Explore real estate crowdfunding. Fundrise is the pioneer of eFunds. But, with an iBuyer like Zillow Offers, all closing costs (including title fees, taxes and insurance), plus a Zillow service fee, are included in your initial offer. The investor never wants to see the house; they just want to purchase it. Learn more about home buying or selling options. Quicker closing. Both traditional investors and iBuyers usually buy in cash, so there’s no danger in a buyer’s appraisal coming in below the offer price and killing the deal. While there are pros and cons of selling to a home investor, the right real estate investment company could offer the solution you’re hoping to find if you want to sell quickly or are selling a property with issues that can impede a traditional sale. While the level of renovation needed and completed varies by the individual home and the local market, the goal is to make a profit on the resale, even after clearing all renovation expenses. Most investors pay for properties in cash so you won’t have the uncertainty that comes with a buyer applying for a mortgage. Traditional buyers are people like you, when you bought your current home. This can come in the form of bank or money market account statements that show cash or liquid assets in an amount that exceeds the purchase price of your home. Instead of using a mortgage to secure interest in the property, the seller/lender retains possession of the property until the buyer fulfills the terms of the contract. If you decide not to have a listing agent represent you, you’ll need to do a lot of research to make sure the offer you’re considering is legitimate and that you aren’t being taken advantage of. If you’re looking to buy an investment property, take a look at Fundrise. With a traditional home sale, you’ll have to do a lot of preparing before you list, from cleaning and decluttering to taking listing photos and staging. This lack of licensing or any sort of professional affiliation leaves sellers susceptible to “we buy houses” scams. Note that to attract a traditional investor, you’ll still have to have your home listed on the MLS and all the major real estate sites, like Zillow and Trulia. Or at least at a bargain. The average time it takes sellers to close with an all-cash investor is two weeks. Like other professional home investor companies, an iBuyer is a house-buying service (not an individual). There are multiple advantages to selling to a real estate investor compared to the “traditional” real estate agent process: No Realtor Commissions. Fundrise is one of the largest real estate crowdfunding platforms today. A larger corporate investor may buy a home without renting it if they’re simply trying to grow their portfolio or want to wait for improved market conditions. Many investors are willing to offer flexible arrangements. an emerging channel to sell real estate properties to chinese investors might totally revolutionize your approach. So negotiations will go differently (and hopefully easier) than they would if the buyer was going to live on your property. If you're a homeowner interested in selling your property to a local investor, below are a few tips to keep in mind: • Don't worry about cleaning the property up or doing any repairs. Selling to an investor over a traditional buyer has some key advantages: 1. SOLD.com can help you get matched to the best options to help you sell or buy. If your home is already in disrepair, an investor has factored the cost of needed repairs into their offer. However, top-selling Fort Worth real estate agent Chris Minteer says that “the majority of the properties that we see go the direction of an investor sale are the ones that need more love.” Investors aren’t going to live on the property, so they don’t need that emotional connection to the space that traditional buyers are often searching for. Investors who aren’t US citizens could suffer negative tax consequences in their home countries by purchasing your home. Move when you're ready. In fact, according to, An iBuyer can close even more quickly. However, if you choose investors, the process becomes a little bit simpler. Selling a house to a real estate investor is something that should be given a lot of thought. Securing a cash offer is especially important if your home can’t qualify for financing — for example, if it doesn’t meet the Federal Housing Administration’s (FHA) minimum property standard, which states that homes being financed with FHA-backed loans must meet safety, security and soundness guidelines. But before you sign that purchase agreement, think it through. Individuals or companies who buy houses, renovate them, and then sell them at a higher price are called home flippers. You’ve recently inherited a house, or you have a house in probate. You Should Sell To An Investor If: Your property needs updating or repairs. Check their website. Why and How to Sell to an iBuyer, What Makes a Good Real Estate Agent for Home Sellers, How to Sell a House As-Is When It Needs Repairs, Real Estate Photography Tips for Home Sellers, For Sale by Owner (FSBO) vs. Real Estate Agent. Or if you’re selling your property through an agency, there will be a commission fee that you have to account for. You don’t want to lose thousands of dollars just because you were too trusting or unprepared. For example, an investor might be willing to take o… Here are some of the biggest benefits. A lot of money. If you want to sell your home to an investor, time and money permitting, you can make small improvements to raise the price. Home sellers can avoid the stress of a complicated home transaction process and sell directly to a traditional investor or an iBuyer. And because they don’t have to tell you what they’ve planned for your home—like tearing it down to build lucrative apartments— you might not know its true market value. The investor will then give a false cashier’s check or have an unsophisticated or unrepresented seller sign a purchase agreement for unfavorable terms and before the seller knows it, he or she has been swindled out of money. The content on this site is not intended to provide legal, financial or real estate advice. So it could be a landlord known for shady renting practices or a developer who wants to tear down your house and turn it into apartments. There’s also an emotional component to the purchase. There are plenty of companies that buy houses — make sure to use a reputable one. According to the Zillow Group Consumer Housing Trends Report 2018, these attributes comprise today’s average traditional home buyer: A professional home investor is either an individual or a company that buys residential properties as part of a business or investment strategy. In this case, individuals or companies buy a property, renovate it (in either minor or major ways), and then rent it out at a premium, while maintaining ownership. Divorce settlements require both parties to divide the assets, and selling fast and splitting proceeds can often be an easier way to go. After all, they’re going to either turn around and quickly resell your home or renovate anyway once the deal has gone through. With traditional sales it can take several months (even years!) What makes an iBuyer different is that they use technology to streamline the selling process, which can mean less hassle for you as the seller. Selling your house for cash to an investor is different. Sell at an investor “wholesale” price. If you’re behind on payments and need to sell quickly, an investor might be a good option. The investor isn’t planning on living in your home so he or she (or the company), doesn’t care if your kitchen has been updated with a vibrant backsplash or if your toilets are new. When you sell your house to Zillow Offers, you’ll receive an all-cash offer within a few days, and after a home evaluation, you can enjoy a quick closing on a date that’s convenient for you. Unlike in a traditional sale, where a buyer will require a 45-day escrow period to allow enough time for inspections, appraisals and mortgage approval contingencies, a traditional investor can close in less than a month — and sometimes even faster. Successful wholesalers usually have a large list of buyers lined up beforehand and use direct marketing to identify inactive or off-market homes they can buy inexpensively. According to the Zillow Group Consumer Housing Trends Report 2018, these attributes comprise today’s, If your home requires a lot of updating or repair work to be attractive to traditional buyers, it may be appealing to, Doing repairs, taking listing photos and scheduling showings with, With a traditional home sale, you’ll have to do a lot of preparing before you list, from cleaning and decluttering to taking listing photos and staging. Most investors care more about the financials and less about how your home looks. You might not sell your home at true market value. There’s really only one disadvantage to selling to an investor, but it’s a pretty big one. So the sale could be delayed for months while the investor works out the logistics of closing. When selling to a traditional buyer, you have to agree upon a closing date that works for both parties, though usually the buyer calls the shots. In this scenario, you would lease out the house to a potential buyer (often a real estate investor) for a specified term (usually 12 months). This delay can slow down closing, and you may have to wait longer to finish the deal. Potential for flexible purchase arrangements. The closing date is up to the seller, within reason, so you’re free to choose that date that works best for your timeline, whether that means selling ASAP or timing it just right with the close of your new house. Disadvantage of Selling to an Investor. If an investor owns a parcel of land that’s adjacent to your home, and the investor wants to build a large apartment or commercial project, this investor would theoretically be willing to pay more for your home than a family looking for a place to live. They’re looking to purchase a property to reside in, either as their primary home or as a vacation home. Zillow Group is committed to ensuring digital accessibility for individuals with disabilities. Real estate investing includes fix-and-flips, rentals, and acquiring property for appreciation. Since most investors purchase with all cash, you can sell your property as soon as your two parties agree on the conditions of sale. An iBuyer can close even more quickly. Should you wish to sell the house without delay, then marketing the house correctly should speed up the sale process. Even if something would happen that you need a little more time, you can normally negotiate a lease-back agreement. Investors are people or companies that want to purchase your home in order to make money. Most investors are looking to buy homes at below-market value. Investors are not always the gifts they appear to be. Selling to an investor can be faster than waiting for the perfect buyer. The type of buyer you accept an offer from can impact the rest of the transaction process. You may also be able to leave stuff behind that you don’t want, which isn’t an option in a traditional sale. What you should know about selling your house to an investor, How traditional buyers and house investors differ, Pros of selling your house to an investor, What Is an iBuyer? The lease option makes sense if you aren’t quite ready to sell … If you’re selling on a very specific timeline, you usually have more control over the close date with an investor, since they’re not timing a move-in date the same way a traditional buyer is. 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