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How to Sell My Home to an Investor

Selling your home to an investor is not difficult. The challenge is getting the price you want. Savvy investors are usually shrewd business people intent on buying properties for below-market prices. Driving a hard bargain allows the investor to resell the house at a significant profit. Many investors seek so-called distressed properties owned by people who are desperate to sell because of divorce, a job loss, financial problems or some other reason. Deal effectively with investors by making the deal all about business as you put personal issues aside and seek the best price under the circumstances.

Instructions

    • 1

      List the reasons you want to sell your house to an investor. Most people looking to sell want to market their home to the widest audience possible. By limiting yourself just to investors you are ignoring most of the market. Reviewing your reasons for selling will help you create an effective marketing strategy. Your house could be in need of major repairs, making it unattractive to typical buyers. Or the neighborhood may have deteriorated, with crime statistics up significantly.

    • 2

      Hire a real estate agent experienced in selling distressed properties. Even if your house isn't a distressed property, the real estate agent's knowledge and experience could pay off. The agent should have contacts in the local investor community and may be able to leverage them for a quick sale.

    • 3

      Review with the real estate agent your list of reasons for wanting to sell to an investor. Use the list to create a SWOT analysis of the opportunity -- strengths, weaknesses, opportunities and threats. Build a cohesive strategy for selling the house based on the analysis.

    • 4

      Order an appraisal of the home from a licensed appraiser or direct the real estate agent to estimate the fair market value based on recent sales of comparable homes in your neighborhood. Adjust the value for needed repairs if you intend to sell the home "as is."

    • 5

      Consult with the agent to establish the minimum price you are willing to accept based on your loan balance, the appraisal, and costs such as the agent's commission and expenses you may have incurred preparing the house to be sold.

    • 6

      Launch a marketing plan based on the SWOT analysis and your talks with the agent. Advertise the house on free online classified sites with headlines that would attract an investor. Also have the real estate agent reach out to contacts in the investment community. Focus less on open houses attracting neighbors and people who aren't serious buyers. Instead stay focused on the investment community and show the house to qualified investors by appointment. Have the agent take all calls about the property.

    • 7

      Accept an offer and prepare for closing with the assistance of the real estate agent. Make any repairs that were negotiated with the buyer and prepare for a final walk through or inspection by the purchaser. Sign paperwork provided by the agent at closing to complete the transaction.

Tips & Warnings

  • Consider selling without an agent to avoid paying a commission. Real estate sold this way attracts investors seeking to negotiate directly with owner. Advertise the property with yard signs indicating that it is "for sale by owner." Also consider offering owner financing if the mortgage is paid off to attract investors who can afford monthly payments but may lack the credit rating for a conventional loan. Set a higher asking price with owner financing and charge a higher interest rate than local banks are offering. Seek assistance from an accountant and real estate attorney to create a sales contract and owner financing agreement.

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