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Has anyone sold their property to a Real Estate Investor?
Good or bad experiences?
Received a post card in the mail saying they want to give me a cash offer for my home. I'm not stupid to believe i'm special, of course, but i'm getting ready to list my home soon. I wonder how (or if) they know that.
No--that don't know that. It's a mass mailing looking for people in financial trouble. They will not pay you anything close to what you want. They make money by paying far less than market value.
I've been checking into it online a bit and it does look like there's both good and bad. You will get a lower price for the house, but avoid many costs including commission. It's interesting. Also we all know that a house listed with a Realtor can stay on the market many years. One did here on our street for over 5 yrs. But i do think the market has picked up around here.
Neighbor in our community sold her home to an investor. I'm not sure about the post card.
She accepted about 15% - 20% less than comparable homes sold for that summer.
But she didn't have to do a thing. No cleaning, painting, repairs, staging, mulching... They agreed on a price. She held several estate sales and then she moved to a retirement community.
Investor came in with a crew, fixed the place up and rented it out.
She was ready to move on and it was worth it to her to sell it with minimum fuss and bother.
Just depends on what you want and how much your time and energy is worth it to you.
Neighbor in our community sold her home to an investor. I'm not sure about the post card.
She accepted about 15% - 20% less than comparable homes sold for that summer.
But she didn't have to do a thing. No cleaning, painting, repairs, staging, mulching... They agreed on a price. She held several estate sales and then she moved to a retirement community.
Investor came in with a crew, fixed the place up and rented it out.
She was ready to move on and it was worth it to her to sell it with minimum fuss and bother.
Just depends on what you want and how much your time and energy is worth it to you.
Thanks, some of it sounds good. I did see that you can even leave old furniture etc. that you may not be able to get rid of. We are retired, and the taxes are too high here. I need to get out of this state. I will definitely weigh all options.
Thanks, some of it sounds good. I did see that you can even leave old furniture etc. that you may not be able to get rid of. We are retired, and the taxes are too high here. I need to get out of this state. I will definitely weigh all options.
You could always check and see what an investor would offer for the house as-is and compare that to what similar houses are selling for.
You could pack up what you wanted to keep and put it in a pod and let the new owners deal with what is left behind.
But if the as-is investor discount seems steep, you can always hire work done.
People will pack your stuff up, clean your windows, manage estate sales, mulch your garden beds, make repairs paint... there even outfits that will come and clear everything out in return for getting whatever is left.
If we were to put our home up for sale, it would cost us about $10K to get ready.
$5K for removing popcorn ceilings and painting and $5K for repairs, mulch, cleaning services, etc. and that's if we didn't need to replace the A/C or discover some other problem.
So, if homes similar to ours sell for $400K and an investor offered us $380K, closing in a month, I'd take it in a heartbeat.
$10K to avoid all the staging, and showing... You bet.
But I'm guessing investors' bids would be low to mid $300Ks. Otherwise, there would be no profit for them.
I sold to an investor but it was after listing my house, an investor just happened to be the one who made the offer. It was certainly nice to have a closing 2 weeks after we were under contract. But he didn't get any discounts.
I would be willing to hear what offer he was going to make but you need to know the realistic market value of your home for comparison purposes. A small amount off for the ease of the transaction, sure. But if it's going to be 10s of thousands off what you could get? Well, only you can say whether you are ok with that money in his pocket rather than yours. I know I wouldn't be.
and fwiw, I am skeptical than an investor would be interested in a house in an area where a reasonably price home could languish on the market for 5 years as you mentioned. There was either some fatal flaw with that house combined with a completely unrealistic price, or you should expect a rock bottom low ball offer on yours if the market is that bad. Rule number one is that the investor is not going to lose money on this deal, or they wouldn't be soliciting properties to buy.
I contacted an investor that sent a letter to my mother's estate about her 2 rental properties that are next door to each other. Its a hot market.
Houses are selling for $340-$350k, The houses were appraised at $343k in April. Its a very hot market, an affordable suburb of LA. The houses in the five block neighborhood are cookie cutter houses, older and each exactly the same floor plan. Only differences are the back patios. Very desirable neighborhood, one renter was there 20+years, the other 40 years.
He did not want to look inside the houses, just a drive by. They are currently rented and he said he would buy them with the renters in place without asking anything like what is the rent, do they pay on time, anything. No commission, no termite inspection, nothing required of us.
BUT he offered $210k each. So, way too low for us! Over 1/3 off the price, even considering commission and closing costs.
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