What You Need to Know About Selling Your Home to an Investor
It is a seller’s market and “For Sale” signs are popping up across Kansas City lawns left and right. Traditionally, most homeowners have assumed that the best way to sell a house in KC is by working with a real estate agent.
However, the real estate industry has changed a ton over the last decade. And now more people are becoming aware that there is a better option available. Rather than hiring a real estate agent, you can sell your home to a real estate investor.
Agents vs. Investors: What is the Difference?
Selling your home to a real estate investor may be an option you are less familiar with. So what is the difference between working with an agent as opposed to an investor?
Real estate agents essentially work as the middleman between the buyer and the seller. They work with the seller to help them get their house ready to sell. They typically work off of commission so their income depends on their ability to close transactions.
An agent will not be able to promise you any kind of timeline for when your house will close. And they can’t anticipate any unexpected costs that will arise due to additional fees, home repairs, etc.
Real estate investors will buy your property as is, make the repairs themselves, and sell it later for a profit. Agents typically work for a real estate broker but investors operate independently.
Investors don’t make commissions and they get to cut through a lot of the red tape agents have to deal with. They can offer cash for your home in Kansas City and get the deal taken care of much more quickly.
Advantages of Working With an Investor
If you are looking to sell your house fast in Kansas City then you definitely want to consider an investor. But even if you aren’t pressed for time, there are many other advantages that can make it worthwhile.
Let’s look at some of the biggest reasons why you should consider working with an investor:
An immediate cash offer
This is especially useful for people who are under the threat of foreclosure. If you’re seriously behind on your mortgage payments you may not have time to wait for a real estate agent to sell your house.
Selling your home to an investor can help you avoid foreclosure and get cash for your home in Kansas City. The same is true if you have inherited property you are unhappy with, have unwanted rental property, or a vacant property you need to get rid of.
No commission fees
Real estate agents do not work for free. With most real estate agents, you will agree to a 6 percent commission of the final selling price. So if you sell your home for $300,000 then your real estate agent gets to take $18,000.
Investors will evaluate the house, determine the value of it, and make an offer that fits your goals and meets their budget. There are no hidden costs and no large commission fees.
Sell your home “as is”
Investors will offer to purchase your home “as is”. That means you don’t have to spend thousands of dollars before you can even put your house on the market.
If you have been through the process of selling your home, you know how expensive it can be. Most people have to do home repairs to get their house ready to sell and those costs can add up quickly.
And once you finish the necessary repairs, you have to stage it and keep it “show ready” at all times. By working with a real estate investor, you will save yourself from all that hassle.
If you work with an agent, there is no guarantee that your home will be sold quickly. In fact, your home can sit on the market for months while you are still paying your mortgage and utilities every month.
And even if you do finally get an offer, the process isn’t over. Then you have to wait for an inspection. Depending upon the results of the inspection, the buyer can request that you do more home repairs. And after all this, the deal could still fall through due to financing issues.
Meanwhile, investors can make an offer over the phone and potentially close within a week.
Wait…what? How is that possible?
Because we can cut through a lot of the red tape that real estate agents have to deal with. We don’t have to waste time with appraisals, inspections, or financing.
With a real estate agent, it can take up to six months to close. With an investor, you are almost guaranteed to close in less than 30 days.
How to Find a Credible Investor
There are plenty of companies that buy houses but of course, not all are created equal. Anytime you are making a financial transaction you run some risk of fraud. You need to do your homework to make sure you are working with someone legitimate.
So you do you go about finding a credible investor? First of all, look to see how they are rated by the Better Business Bureau and if any complaints have been filed against them.
Ask for references and check their Google business reviews. And ask for a non-refundable deposit and proof of cash funds. The actual closing should take place at a reputable title company.
Look for someone you trust and go with your gut. There will be scammers in every industry but the majority of real estate investors are honest and do great work.
If you are looking for the best way to sell a house in KC, working with an investor could be the right choice for you. Having been born and raised in Kansas City myself, I’m knowledgeable about the real estate industry and how this process works. I buy houses in Kansas City in all different types of conditions. My goal is to help you cut through the clutter and sell your house fast.