Selling

Selling Your House to an Investor: Pros & Cons You Should Know

If you are interested in selling your house to an investor, you should know that there are many great reasons for doing so and working with the right person will make all the difference.

Whether you’re short on time, your home is in need of major repairs, navigating through a divorce, facing a home foreclosure, or saddled with a rental that you want to off-load, selling to an investor can be the best approach and much less costly than working with a real estate agent.

Pros and cons of selling your house to an investor
Benefits of selling your home to a real estate investor
Drawbacks of selling a house to an investor
How to sell your home to an investor at a good price
Can you negotiate when selling your house to investors?
Possible reasons to sell your house to investors (and if it will affect the price)
Thinking of selling your home to an investor in Northern California?
What is the process when selling my house to an investor like Diroddi Home Buyers
FAQs

Pros and cons of selling your house to an investor

Depending on your situation, there are a few pros and cons of selling your home to an investor. We’ll take a look at the following pros and cons:

The closing is both fast and flexible.
You can expect a lower sale price.
You avoid the inconvenience of contingencies.
There is a more significant risk of being scammed.
You can avoid foreclosure.
You miss out on the investment potential of owning real estate.
There are no closing costs, and you won’t pay a commission.
You may have less leverage in terms of setting a price.
Selling as-is means no repair costs for you.
The sale price will reflect the work the investor takes on.
The market won’t play as big a role.
Any negotiating will likely involve you making repairs.
There is very little paperwork involved.
If the investor is foreign, the process can be lengthy.

Benefits of selling your home to a real estate investor

Selling your home to a property investor comes with various advantages, including:

Closing is fast & flexible

For me, if the goal is to sell my house fast in Northern California, I know that cash home buyers have the resources to buy your home outright, which means that the process will move quickly and you’ll have various options regarding how you’ll be paid. Another advantage is that the deal will not hinge on the buyer obtaining lender approval, which can derail your plans.

You avoid the inconvenience of contingencies

Most clients who purchase homes through real estate agents include contingency clauses in their contracts, which can drag out the process considerably.

You can avoid foreclosure

If the bank is in the process of foreclosing on your home, selling to an investor can afford you a way out.

No closing costs or commission

The truth is that most home buying companies – whether you go through a realtor or not – tack on fees, such as closing costs and commissions. Real estate investors, however, do not.

Selling as-is involves no repair costs

If you are selling a home as is in Northern California, there is no need to make any repairs or to involve yourself in any of the hassles that are commonly associated with preparing a property for market.

The market won’t play as big a role

When you sell a home for cash to an investor, the real estate market at the time will not play as significant a role as it would if you pursued a more traditional route. Investors have the flexibility to sell when it makes sense for them to do so.

Little to No Paperwork

Finally, you may be relieved to know that selling to an investor does not involve seemingly endless amounts of paperwork, which is the hallmark of selling through a realtor.

Drawbacks of selling a house to an investor

There are also a few drawbacks associated with selling your house to a real estate investor. Keep in mind, they are likely looking at your home as an investment property versus a place to live like a traditional buyer would.

Expect a lower sale price

Real estate investors pay cash for houses just as they are, and in so doing, they streamline the process. While the convenience can’t be beat, the sale price will reflect the amount of money and time the investor needs to put into your property.

Significant Scam Risk Involved

While you can expect local real estate investors who’ve made a name for themselves in your community to be on the up and up, there are online investors who are far more interested in gaining ownership of your home for far less than it’s worth or in tricking you out of ownership altogether. This should be forefront in your mind when learning how to find real estate investors that are trustworthy!

You miss out on the investment potential of owning real estate

Real estate tends to be a solid investment, and when you sell to a real estate investor, you give up the property’s investment potential. If you don’t have the resources or time to keep the property in good condition, however, selling to an investor can help you retain as much value as possible.

Less leverage in terms of setting a price

Real estate investors are cash buyers who purchase homes from people who generally need to sell, and as such, there is typically less room for negotiations in terms of a better price. Instead, the value and condition of your home will dictate the offer.

The sale price will reflect the work the investor takes on

Selling your house as-is means that the investor is responsible for making the repairs necessary to get the property on the market, which will be directly reflected in the offer they make.

Any negotiating will likely involve you making repairs

In order to increase your negotiating leverage when selling a house that needs repairs, you will very likely need to make those repairs, which can defeat the purpose of working with a real estate investor who buys homes for cash.

Process can be lengthy if dealing with foreign investor

There are many foreign real estate investors, but the amount of time it takes to complete the transaction can be far more than working with a local investor. It’s also important to remember that the integrity and ethical practices of local investors are far easier to vet.

How to sell your home to an investor at a good price?

Want to know how much an investor will pay for your house? You can sell your home to investors at a good price by keeping the following points in mind:

Real estate investors look at the property’s fair market value based on factors such as its location, the neighborhood in which it’s located, and the amenities included.
You can help confirm your home’s fair market value by doing some research of your own into comparable properties in your neighborhood and city.
The Federal Housing Finance Agency, along with other sites focused on supporting real estate investment, also provides an opportunity to get a value estimate of your home in relation to the current market.
A local, well-respected real estate investor will send over an inspector to perform a thorough valuation of your home and make a cash offer on the spot, which helps to ensure that you get a price that reflects your home’s worth.

How to sell your house to an investor?

Selling directly to a real estate investor like Diroddi Home Buyers couldn’t get any easier. Simply make the call, and we’ll set up the inspection with our in-house professional – who is qualified to make you a cash offer then and there.

Can you negotiate when selling your house to investors?

You can negotiate when selling property to investors, but there is a lot to consider. You are welcome to hire your own inspector, obtain your own valuation, and make some of the home repairs that are necessary to bargain upward, but you should expect your efforts to require a considerable investment in terms of both time and expense.

The goal of selling to investors is typically to avoid these expenditures, which tends to limit your ability to engage in considerable negotiations.

Possible reasons to sell your house to investors (and if it will affect the price)

If selling my home to an investor is on your mind, it’s important to recognize that there are certain situations in which doing so is an excellent plan that can lead to considerable benefits such as:

Inheritance Case

If you’ve inherited a home that is in poor condition, that you don’t have time to prepare for sale, or that you simply don’t want to deal with, selling it to an investor can be a great option that can help maximize your return on the transaction.

Home is facing Foreclosure

If your inability to pay your mortgage has caused the bank to begin the foreclosure process, selling to an investor can lead to considerable benefits that include minimizing the financial impact you experience and keeping the property out of foreclosure. When it comes to selling a house in foreclosure, selling to a real estate investor may be your only option.

You’re relocating for work or have another pressing reason for selling your home within a tight time frame

In fact, if you sell your house through a real estate agent, a speedy sale can take from 30 to 45 days, and many sales take considerably longer. If time is of the essence, selling to a real estate investor can provide you with the cash you need to move forward into your future while saving you time in the process.

Divorce Situation

If you’re facing a divorce, your home can become a sticking point in relation to the division of your marital property. For example, if neither of you can afford to buy your house from one another and you don’t want to bear the expense of going through a realtor, selling to an investor can make quick work of the problem and save you money in the process.

Location is undesirable

If you own a home in a less than desirable neighborhood, you probably won’t get the fair value of your home without biding your time and waiting for the right buyer, which can be costly in and of itself. Selling to a real estate investor can take care of the problem for you.

Home requires serious repairs

If the home you want to sell is in serious need of repair, the straightest path forward is selling to a real estate investor who will get the property ready for market – allowing you to forego the time, headache, and expense involved.

Rental you no longer want to bother

While owning a rental property can be a great investment, it’s also a big responsibility, and if you don’t have the time or resources to make it work, selling to a real estate investor offers a way out.

Should I sell my home to investors?

If you find yourself in any of the above-mentioned situations, it’s ideal to sell your home to real-estate investors.

Thinking of selling your home to an investor in Northern California?

If you’re wondering how to sell your house without a realtor, you should consider selling to an investor in Northern California. They’ll take care of all the messy details, and you’ll be paid in cash.

Wondering who to trust when selling your property in Northern California?

Diroddi Home Buyers is here to help you, guaranteeing an easy and speedy process. We have got you covered from the moment you reach out with a phone call.

What is the process when selling my house to an investor like Diroddi Home Buyers?

Selling your home to Diroddi Home Buyers begins with a phone call, ends with a cash offer, following the general path:

Give us a call at 415-763-0083—or fill out the short form below—to request your fair cash offer.
Await our prompt response to discuss your property in greater detail and schedule a one-time inspection that allows us to offer the highest amount possible.
At the time of the inspection, our in-house inspector will quote you a fair cash offer, and if you’re on board, you can consider your home sold!
Choose your closing date, and leave the rest to us. You can choose payment via check or wire transfer. It simply doesn’t get any easier.

FAQS

Can I refuse to sell my house to an investor?

Yes, you can refuse to sell your house to an investor at any time before the deal is finalized. When you work with a real estate investor, you have the right to back out of the deal for any reason as long as the sale isn’t final.

Is it good to sell your house to an investor?

Yes, selling to a real estate investor can be an excellent plan – especially if you need to sell your home quickly, your house needs considerable repairs, you’re going through a divorce, the bank is preparing to foreclose on your property, or any number of additional reasons apply.

When is the best time to sell my house to an investor?

The best time to sell your home to an investor is as soon as you recognize that you’re ready to sell but don’t want to go through the traditional channels. The sooner you begin the process, the sooner you can move forward toward whatever comes next for you.

Should I sell my house to an investor?

Well, you should know that it can be a great option if you are ready to sell your home as-is, want to avoid the hassles associated with the real estate market, and are interested in making a quick sale, it can be hard to beat a real estate investor. There are, however, other options that can be better suited to different situations, including:

Selling your home through a realtor
Selling your home to a national we buy houses company
Selling your home to a iBuyer that employs a virtual sales process
Selling your home directly to a buyer

If you’re interested in exploring your options with reputable investors, we invite you to give us a call at Diroddi Home Buyers. We buy houses for cash in Northern California and offer a speedy and convenient process that takes the lion’s share of the burden off of you.