What Are the Pros and Cons of Selling to An Investor?
Are you planning on selling your Southern California home and are wondering what are the pros and cons of selling your home to a Real Estate Investor? If so, you’ve come to the right place! In this article, we will provide you everything you need to know about selling your home to an investor.
What’s the Difference Between Selling to An Investor Versus A Traditional Home Buyer?
During the process of having your home listed for sale you may receive offers from two different types of home buyers:
Owner Occupied Buyers – These are buyers who plan on living in the home as their primary residence.
Nine times out of ten you will get top dollar for your home when you sell it to an owner-occupied buyer because they will have been approved for financing and will be able to pay your asking price.
Real Estate Investors – Most investors are individuals who may want to buy the home for the purpose of renting it out or fixing the home up then reselling it.
Pros and Cons of Selling Your Home to An Investor
Pro’s Of Selling To An Investor – Most investors pay cash for the homes that they purchase. This is a huge benefit especially if you need to close quickly and can’t wait up to 90 days for your home to close when you sell it to an owner-occupied buyer.
Con’s Of Selling To An Investor – When an investor does give a homeowner an all-cash offer it will often be for less than what the home is worth.
Even though many investors buy properties for cash, it’s not uncommon for some investors to buy investment properties with financing. When this happens, their lenders will often require then to apply a down payment of at least 25% so you can have confidence that they are more than qualified to purchase your home.
What Option Should You Choose?
At the end of the day, the offer that you choose for your home is entirely up to you. Just make sure that you’re able to sell your home for top dollar to a qualified buyer and you will be able to walk away from your real estate transaction with peace of mind.
Contact the Fred Sed Group
To learn more about selling your Southern California home contact the Fred Sed Group today by calling us at (800) 921-9231, connect with us online or through social media.