Are you leaving money on the table?
There are several investors out there buying properties for cash. They offer a quick close and little to no contingencies. Keep in mind that if the private investor’s goal is to buy properties to then turn around and list them for sale, you may be leaving money on the table.
Our current real estate market has so many moving parts. A part of it is investors calling homeowners asking if they are interested in selling. I get calls and text messages every single week asking me if I would like to sell my home. I am positive that I am not the only person that finds this practice incredibly annoying. But I digress.
I believe there are scenarios where selling directly to a private investor or investment company would be the best choice. Every home owner has different reasons for wanting to sell.
Tens of thousands of reasons to sell on the open market
Recently I had a conversation with a past client that purchased an investment condo. She bought the condo five years ago for $96,000. Now, she would like to sell it. She has received several calls from investors offering to buy it for cash and a quick close. She did not know whether they were fair offers or if she could even sell quickly.
The investors are offering $100,000 for her condo. I let her know that she could get much more than that if she lists it on the open market. The recent sales of similar properties in that community right now are ranging from $145,000 to $155,000. And they are selling in less than a week. Meaning that if she lists it for sale today, by this time next week there’s a good chance that she will have accepted an offer. An offer that would be much more than $100,000, that’s for sure.
How do you make the decision whether or not to sell to an investor?
This disparity in price is not uncommon for me to hear from potential sellers. If you are not in a business that functions in the residential real estate market on a day to day basis, this may not be something that would be on your mind.
Like I mentioned at the beginning of this blog, there are scenarios where the seller could benefit from selling directly and quickly to an investor. It all depends on what you, the seller, feel is best for you. Get as much information as possible on the current market value of your home. Be informed.
If you are receiving cash offers from investors and would like to know whether it would be a good deal for you, give us a call or send us a text message. Our number is 602-391-8986. We would gladly provide you with the information about your home’s current value so that you can make an informed decision.