Why Some Sell Their House to Investors? And How They Do It
Posted on September 9, 2022 by Amanda Gladin
How sell house fast is probably the easiest question for us to answer, but let us show why some people choose an investor vs traditionally. And inside look into the “why” and the “how”.
You Have to Sell Fast
Well, I wish we could say this type of stuff doesn’t happen and isn’t the main reason we see many of the sellers we do. The truth is…it happens. It happens to people that do not deserve it. Sometimes we go through things in life that put us in very uncomfortable situations. Read further to see how sell house fast.
This one speaks for itself. It is when a person becomes behind on their loan for their house. Honestly, time is of the essence in this situation. It is the delay that causes additional stress of having to rush to sell before the bank auctions the house off.
It’s best to plan for more than one outcome. Sometimes we are waiting on insurance from a settlement, funds from a new job, or an influx of money to catch you up on your note.
I’m not saying to just give up and sell, I’m saying to communicate with your lender, explain what the plan is. Get a back up plan in place, so you aren’t letting the bank have any of the equity you may have built up in your home.
Give us the opportunity to give you a cash offer that can close by a specific date prior to the bank foreclosing on the house. As a backup option. I mean what do you have to lose if you’re already researching how sell house fast.
Ordered to Sell
When ordered to sell, the decision has already been made, but now your piece begins. Depending on what the court is requiring, this can be a simple process or just checking the boxes they have asked of you.
Things like: 1) selling within a certain percentage of the value, 2) ordering of an appraisal to establish value, 3) completed by a specified date. All these things they should make you aware of, but it’s best to ask if there is any criteria to an offer that you can accept.
With a divorce there may be more than one decision maker. More of the things listed above may happen to make sure a spouse isn’t selling a property for less than its value to just be done and stick it to the other person.
There should be very clear instructions in a divorce decree as to who gets the house, what specific date possession is to take place, how the equity is to be divided, etc.
Trust me you do not want to be the person that gets the house in the divorce, have an expectation of when they should be out, and expect the other person to think that ASAP is next week, but it’s 2 years from now. Always have the details in writing in the decree.
We had a seller that had her x husband stay through the whole pandemic, utilize the moratorium to stay, and finally had to pay him $15,000 to leave. After already getting the house in the divorce. Read More if you’d like to know the details of how sell house fast in this situation.
If you’re the independent executor of an estate then you have been given the final say on following the deceased wishes. However, if you’re needing to make this decision with a joint executor, hopefully the guidelines have been lined out, especially in the times of a tie breaker.
Stressful situations lead a lot of people to do things that you never would have thought they would do. It’s human nature to believe your perspective is correct. In this case the more details the court gives in the order, the less communication issues you will have.
Do not think I am saying that all situations without the details do not go smoothly. It’s just best to prepare for worst case scenarios to prevent any miscommunications or words that someone may not let you live down, and vice versa.
You Want the Convenience
There may be times when you just don’t feel like waiting for a buyer. There are many reasons people stop at a convenience store on a road trip, most of those people are really just looking for the quickness of shopping while grabbing gas.
Then there are the folks that pack an ice chest because it’s cheaper to prepare for the road trip. The question is, which are you?
Some people choose to be a landlord because it is a way to make a passive income if you do it the right way. Then again, there are the landlords that become landlords overnight, because they do not want to sell a past home due to the emotional connection to it or just haven’t quite decided what they want to do with it.
You could just be tired of the passive part not being so passive. Now you’re looking into how sell house fast, because you just want it sold to move on with your time. In any case, it is best to not repair anything to a house you plan to sell, unless you have the time, money, and can give detailed information on the process of the renovation.
If you have done the math and the only way to meet your sales price is to renovate the house, then I have a few more questions for you. How much time will this renovation take? Do you have trusted tradespeople to do the work? What will you do if something goes wrong? Will any of these affect your financial stability or stressload?
Regardless of what you decide is best for you, there is no harm in getting an offer based on selling the house as-is where-is with no expectations from the buyer of you repairing prior to closing.
Whether you’re relocating across the globe or to the next street over, this option is still an option that may work for you. Especially in the case of needing to move on your timeline or maybe wanting to have access to both houses for a period of time to get things moved exactly as you want.
We see plenty of people that sell to have the money to buy their next home or to have the funds to renovate their soon to be home. This is something we do frequently.
There is usually a deposit withheld to make sure to protect ourselves from the seller not moving out. That isn’t because we do not think you will move out, it’s just a level of precaution that we have to place on these types of leasebacks.
It brings a level of safety to not having to make sure everything happens exactly as planned, especially if something further down the line goes awry.
For example, let’s say the house you plan to close on with the funds from this house, ends up not closing on the day you’re expecting because something happened on that seller’s end that has messed up the ability for the timeline to stay exactly as it is. Then you have two different sellers freaking out about something that we could help alleviate.
So maybe the convenience of selling the house to an investor makes the most sense because they won’t be moving in, and you won’t be making someone homeless if your plan doesn’t go exactly as planned. It happens to the best of us.
Now to Reflect
So whether any of the above situations sounds like you or maybe you think your situation is unique…give us an opportunity to get a back up plan in place. Let us see what information you need to achieve your goal. We definitely know how sell house fast.