Investors often buy homes that they feel are priced below market value and in need of repairs. If you want to sell your home to an investor, time and money permitting, you can make small improvements to raise the price. Should you wish to sell the house without delay, then marketing the house correctly should speed up the sale process. Before putting your house on the market you should first make it attractive to prospective buyers, and you can do that without spending any money.
Clean out your house. Throw out things that you do not plan to keep and box up most of your possessions. Take down pictures and personal items that enable people to identify the house with you. Most investors view houses as potential income sources rather than homes, and the absence of personal items allows a prospective buyer to better assess the home. Mow your yard and thoroughly clean the interior so that it appears as a clean and pleasant environment to prospective buyers.
Contact local real estate agents. Explain that you want to sell your house to an investor. Ask the agents about their areas of expertise and try to find an agent who has worked with investors. You may find an agent that works with several investors who may take an interest in the home. Go to the Better Business Bureau website and read customer reviews before deciding with which real estate agent to work. Ask an agent with good reviews and experience to list your home. If applicable in your state, sign a listing agreement with the agent.
Tell the agent to market your home as ideal for an investor. If the home needs extensive repairs you can advertise it as a fixer-upper. You must price the house appropriately, so ask for a price that reflects the state of the home and enables you to make a quick sale.
Hire a home inspector to inspect your home. You do not have to do this but doing so reduces your liability if the buyer later tries to sue you for problems with the home that were not apparent at the time of the sale. Many buyers hire home inspectors before agreeing to buy homes; and to speed things up and create goodwill, you can offer your inspection to the buyer.
Show the home to buyers. Agree to an acceptable price for the home, and set a closing date. Allow your real estate agent to conduct negotiations on your behalf because agents have knowledge of the market that enables them to negotiate more effectively than the average home seller. Sign the mortgage documents to transfer ownership of the home.
Tips & Warnings
- If you currently rent out the home and have had a good record with renters, you should share that information with prospective buyers. For privacy reasons, you cannot show buyers the lease contracts, but sharing information about the price for which you rent the home enables prospective investors to determine whether the property suits their needs.
- Make sure that the investor has financing or funds in place before agreeing to a sales contract. Mortgages for non-primary homes are much harder to qualify for than primary residence loans, and you may waste time if you sign a contract with an investor who cannot qualify for a loan.
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