By now, you may have decided to sell your house to an investor instead of listing with a realtor. You realized it is best to sell your house fast and for cash without having to go through the stress and process of repairing and marketing your home.
Now, finding a legitimate investor in Utah is the hardest part. As a first-timer who probably has no experience transacting with an investor, you need to know what to do when taking this route for two reasons; There are scammers everywhere, and then there are ruthless investors who are only out to make a profit.
So, how do you find an investor? What happens when you find a trusted investor?
This article answers all your questions and concerns about selling your house to an investor. Before we begin, let us examine the question of who is a real estate investor.
Who is a Real Estate Investor?
A real estate investor buys houses from homeowners who need an easy and quick sale of their properties. They purchase properties with the intent to renovate for sale or rent it out. In both cases, the primary aim of an investor is to make a profit. However, that does not mean an investor is out for only their gain. A reliable real estate investor looks out for the house seller as much as they look out for themself.
Because of their business model, an investor can buy houses in any condition and close quickly, usually in less than 10 days. This makes them the best option for homeowners who:
- Need to sell quickly (e.g., foreclosure, relocation)
- Need to sell discreetly (e.g., divorce)
- Want to avoid the hassle or expense of selling via the traditional way (e.g., extensive repairs, expired listing, bank financing)
- Want to avoid legal issues (e.g., inheritance, tax lien)
How do Investors Work?
Investors offer homeowners a fair price for these properties and take care of the problems that come with them. While many investors buy houses for cash, the majority actually pay homeowners in their preferred payment method (including check or via wiring). Some investors also purchase properties using unique kinds of resources available to investors, such as “hard money.” However, the result for you is the same. You still get paid in cash.
In some cases, legitimate investors may also talk with you about something called “seller financing”, which is where the seller makes payments directly to you over a period of time instead of paying you all at once. In some cases, an investor may offer you a higher purchase price if you provide seller financing because you can save the investor some of the costs associated with purchasing your property.
So, what are the three key steps to selling to a real estate investor?
1. Contact a legitimate investor
The first thing you should do is contact a reliable real estate investor.
You can go for either a local home investment company or an out-of-state one. Regardless of your choice, one thing you should know is that any legitimate investor would at least have a well-established team and company registered in the state where their investments take place. This indicates that they likely have in-depth knowledge of the state’s real estate market trends and value.
To avoid falling to scammers at this stage, it would be wise to start by speaking to a trusted real estate agency like us at Bost Redevelopment. We would put you through on what to expect during the process and even give you a rough estimate of your house’s current market value before going through the process.
2. Get into a contract with the investor
Many investors perform their due diligence before getting the property under contract. This stage is the period during which they estimate how much your home should sell based on location, amenities, etc. In cases of houses that need repairs, they get to evaluate the after repair value (ARV) of your home. In situations like foreclosure or tax lien, an investor will take a look at the relevant documents and see if they can solve them after buying your house.
The whole process should take between a few days to weeks. However, as a homeowner, it is up to you to ensure that this period is as short as possible, especially if you need to sell fast due to time constraints like foreclosure. Legitimate investors have the resources to do their due diligence in days in order not to delay you.
3. Close quickly
To put it more simply, closing a deal with an investor is the fastest of any house selling method. There is no closing cost or commissions involved. All you need to do is sign the necessary documents. However, you still have to be careful. Many unethical investors try to get the best of you at this stage, especially if you are selling due to financial difficulties. With Bost Redevelopment, you do not have to worry. Our team is willing to go over and explain every detail in the Real Estate Purchase Contract (REPC).
Are you looking to sell your house to an investor today?
Find a trustworthy real estate investor to sell your house to is very difficult. Fortunate, you don’t have to look too far as Bost Development is here for you.
Our team will assess your home within the shortest time frame and offer you a fair price. We will close the deal within 5 – 10 business days and even pay your moving cost!
Lastly, you get a 5-day cruise vacation for 2 if we get to successfully buy your house.
So, what are you still waiting for? Send us a message below now and let us know how we can help you.