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Selling Your House to an Investor // Why You Might Reconsider

You may be familiar with all the reasons why selling your house to an investor is a good decision.

There are many perks to selling your house to an investor, but this opportunity can also come with risks…

Today we’re going to cover some reasons why selling your house to an investor may not be the best choice for you.

selling your house to an investor

Benefits of Selling Your House to An Investor

Before I get into the cons, why would selling your house to an investor be beneficial?

It is easy to see the pros. Investors write all kinds of articles trying to convince you why it’s a good idea 🙂

Flexible Terms

Investors have much more flexible terms than traditional financial institutions. If you are short on funds an investor is going to have the ability to work with you on a case by case basis.

Because there is much less red tape and investor is also going to offer you the opportunity to close fast, and who doesn’t want that?

Sell As-Is

Selling your house to an investor can assist you in moving the property “as-is”. This means you don’t have to worry about investing in repairs, staging the home or refurbishing that pink 70s bathroom you’ve been meaning to update in preparation for a sale.

Sounds like a great deal, right? You can save time and money, and when selling your house these are top priority!

Risks Of Selling Your House to An Investor

Why would selling your house to an investor be a risky decision?

Investors offer more flexible terms for good reason. They are getting a great deal on your sense of urgency to move the property.

Most Investors Don’t Have a Real Estate License

First of all investors do not need a license to buy a property. They are not necessarily responsible to a third party and do not represent a buyer or a seller, so they do not need a license to buy.

A licensed investor offers not just a source of comfort, but an established credential.

An investor represents himself only, and this can skew judgement and motive.

Lower-Than Market Value Offers

Though an investor is going to offer you fast cash, you are going to be taking a lower offer for the risk an investor takes on.

A lower price is reflective of the quick sale. Keep in mind the investor will be responsible for closing costs, repairs, back taxes and holding costs which increase the longer they are unable to sell the property. Selling as is takes it off your plate, but puts it on theirs and they still need to offer enough value to you to make it worth it.

Investors do not need a license to purchase properties, and this lack of required credentials opens this investment category up to scam artists posing as investors.

Scammers may request advanced fees and provide fake certifications. It is imperative that when working with an unlicensed investor that you do your own research. Do a search on the Internet for the investor’s name, ask for references and do your due diligence to keep yourself safe from questionable investors.

Concluding…

In conclusion there are many things to consider when selling your house to an investor.

Remember to do everything in your power to protect yourself while maximizing your profit and saving yourself as much time and money as possible.