Know The Pros And Cons Of Selling Your House To A Real Estate Investorby Derek Allison Sell your House Fast for Cash in New Jersey
Billboards that read “sell your house fast in Bergen County” are not all that uncommon anymore. Over time there has been many changes and improvement in the US economy. Real estate is worth more now than ever before, and homeowners can look to real estate investors to quickly cash in on their properties. However, you might be new to dealing with investors, so here is a briefing on your ‘gains’ and ‘losses.’
Dealing with an investor over a realtor or a typical buyer is better, because –
When you deal with an investor, you get to experience flexible payment options such as quick cash within as little as 7 days or pre-scheduled cash to be paid on the date you choose. payments. Furthermore, depending upon how reputable your hired firm is, they may also be able take over your outstanding mortgage payments, or even offer the purchase priced in the form of an annuity over a fixed term, which helps tremendously on taxes owed. There are a few real estate investment firms such as Turbo Home Solutions that can offer any of these options, while even covering your closing costs.
Unlike typical buyers or real estate agents, investor can buy your house as-is. There is no requirement for restoration or renovation; you can sell your house in Passaic County the way it is – you don’t even have to remove any unwanted junk from it. Investors would then clean out and renovate the house with their team of contractors. On the contrary, when you choose the conventional route of selling through a realtor, you are asked to clean out the house and make repairs demanded by potential buyers. Don’t forget, you will also need to keep everything neat and clean while potential buyers come to look at your house whenever they please. All you experience with a typical buyer or a realtor is more expenses, less money than expected, and a longer timeframe to receive your money.
Real estate investors such as Turbo Home Solutions can close the deal in as little as 7-10 days. This is possible because the process of property sale does not rely upon home inspections, appraisals, and most importantly, the mortgage approval. Skipping these lengthy processes makes the sale quick and easy for both parties.
You can stay until it is sold
This is another, and arguably the most sought-after, benefits to homeowners. Unlike realtors, your length of stay can be negotiated when dealing with an investor. You don’t need to have your house ‘show ready’ for months or for years while waiting for a suitable buyer to make an offer you accept, then close on. With an investor, you can agree on closing within 7 days, a month from now, or 6 months from now, whatever you agree upon.
Well, as every coin has two sides, dealing with investors is not entirely free of flaws. Although less, there are some cons to consider. For example –
You sell below the market value, well, not exactly
Yes, you read it right. “Market Value” is often mistakenly perceived as nearby listed homes for sale through agents. However, there are many flaws to this. Market Value is actually based upon the price of similar nearby houses that have SOLD in recent periods, through agents. However, agents also take a commission, which is deducted from that market value price. Also, houses listed through agents take a minimum of 3 months to sell up to an indefinite amount of time. That means at least 3+ more months of mortgage payments, taxes, and utilities. These items will also reduce the amount of money you will be able to stick in your pocket once the house is sold. Lastly, you will owe closing costs. Investors can purchase your house for cash in as little as 7 days, as-is, with no commission, and even paying your closing costs. Time is money. The amount an investor offers to pay you for your house may appear to be under market value, but when considering all of these other costs for selling through an agent, it ends up being more or less the same amount you will put in your pocket in the end.
As the real estate industry has become more competitive, scammers have jammed into the market with a motive to feign. You might hire an investor who claims to be experienced, but as investors don’t need licenses to buy, you can’t find out the fraudulency motive behind, if any.
Created on Sep 6th 2017 02:04. Viewed 366 times.