What You Ought to Know Before Selling Your House to an Investor

sold propertyIf you want to sell your house fast in St. Louis, Houston, Salt Lake City, or any major American city, a flipper is perhaps your best option. Klamengroup.com will agree.

Whether you want to turn your fixer-upper into instant dollars or avoid foreclosure, dealing with an investor is better than waiting for the most generous homebuyer to come along. By and large, flippers are willing to buy properties in “as is” condition, pay cold cash, and close within seven days.

But before you take this route, pay attention to the realities of selling to a real estate investor:

1. Sweat equity might not matter.

Investors spare sellers the ordeal of home improvement because they generally want to make the renovations themselves. This means any project you intentionally do to make your property seem more expensive might not give you any leverage at the negotiating table. The improvements you intend to make might not be consistent with the changes the flipper has in mind.

2. Sale price might be below the market value.

If you’re dealing with an investor, make peace with the strong possibility that you wouldn’t be paid based on your property’s actual market value. Flippers do business to generate profit, which is why they try to keep their expenses to a minimum. Plus, they have their own costs to worry about as well.

3. The flipper could be a con artist.

Any financial transaction comes with risks, but selling your biggest asset requires extraordinary caution. Even if you want to close the sale as soon as possible, don’t rush into things. Since investors don’t need a license to do business, exercise due diligence to ensure your prospective buyer isn’t a fraud.

Fortunately, reputable real estate investors are searchable. They might be accredited by the Better Business Bureau, and have past clients who can attest to the legitimacy of their business.

Flippers provide a unique set of benefits for house sellers who don’t have the time to wait to see the traditional real estate process through. Make sure, however, to be aware of the little things you have to give up and calculate the risks to set your expectations and avoid rip-offs.