Why are homeowners selling to investors?
Written by Evelyn C. Garcia
Edit by Akemis Ortiz
This may be a particularly common question, yet most people don’t understand why they would sell their home to an investor considering the traditional way of selling your home is by using an agent. Homeowners are understanding how this method is not working anymore if your home is not brand-spanking-new! Let’s face it-- Our homes are aging just like we are. The real question remains, how about if you do not have a fixer-upper? Should you still consider selling your home to an investor?
Yes! If you understand the process, you will most certainly sell to an investor. From experience, many homeowners are just tired of agents listing their homes on the MLS and then disappearing. Real estate agents are there to help you sell your house at a price you provide. However, after two months of not selling, they will say "sorry the market is not right" and then drop the value 10,000. After two months, they would repeat this until the contract expires, and when the house is no longer for sale because the agent has devalued your property.
Now think about the holding cost you've invested for six months and the cost you obtained to upgrade and fix your home from the advice of your agent. Now think about the big cost of closing, attorney, and if the house sells the agent 6% commission. The entire cost of selling your home can be a tremendous expense. The most common reason why homeowners don't sell to an investor is that we cut to the chase and offer to pay for the house without an out-of-pocket expense. At first, that offer will come out as if we are trying to low ball, though actually, it’s a win-win for both parties.
Also, homeowners will come running to investors when they need to get out of the house quickly, and these are scenarios that do happen frequently. There is a huge misconception that investors take advantage of homeowners who are in these unfortunate situations. It is the total opposite. Investors such as myself, are in this business because we want to help. A real estate investor is a 'people's person' who perpetually ensures the right connection to make any situation the best outcome for the homeowner. People before profit is our motto.
What unfortunate situations are we speaking of? Visualize this, you live in Texas and your uncle lives in NJ, and unfortunately, he passes away. He lived in this house for 40 years, and you know for sure it needs improvements. You have a life with a full job and kids to attend to, but you just inherited your uncle’s house. You don’t have time to fly to NJ to sell the house, nor do you have time to fix up the house to list it with an agent. This is where an investor will come into play and make the problem disappear.
What will you do if you lose your job, and you could barely put food on the table? You are behind on your mortgage and the bank is knocking on your door. You do not know what to do and time is running out. An investor can take the load off your shoulder! We can buy your home facing all your existing loans and liens, and we will work with the bank. We can handle them because we are not emotionally connected. Investors can help find you a place to live if you wish and even help you to rebuild your credit.
Another unfortunate situation is divorce. This implies that you have to split everything in half including the home where you raised your kids. You are eager to sell the property as quickly as possible. An investor can close in as little as two weeks. Now that’s a breeze!
There are so many situations, and believe me, I have helped many homeowners overcome situations. For example, a father and son are both owners. The father swears the son tried to kill him, and the son swears the father hates him. They do not want to leave the house, but the house is in foreclosure; they are so stubborn that they both are willing to become homeless if they don’t settle this battle. One night I came with a pastor and stayed nearly five hours hearing them vent. At such an emotional time, they agreed to sell and go their separate ways.
As a real estate investor, I felt the need to correct the misconception we have. A lot of people think we are exploiters who go after the vulnerable and take advantage of people. The fact is that we go above and beyond to help people. We learn every possible, and creative way of how we could help homeowners overcome sticky situations. We offer help in ways no other will, like cleaning, packing, and paying for moving. It’s very common for us to go the extra mile. We are truly in the business of helping others!