The Pros and Cons of Selling Your House to a Real Estate Investor -

Selling your house can be a stressful time in your life. Often, selling your house has other factors adding to the stress, i.e a divorce, job transfer, inherited property, foreclosure. etc. One option to consider when you need to sell your house fast is to how to sell a house by owner in missouri to a real estate investor. But what are the pros and cons of selling to an investor? Let’s take a look.

Pros of Selling to an Investor

Quick Sale – An investor can close much quicker than a traditional retail buyer. An investor will typically pay cash, so there is no waiting on a lender approval. This can cut the time to close down to as a little as a week.
No Repairs – Real estate investors will buy your house “as-is”. You won’t have to worry about making any repairs or landscaping the front of the house to increase its appeal. A retail buyer will be required to get a home inspection by their lender. Often times, a home inspection turn up repair items that will need to be completed prior to the closing. And these can often be costly repairs.
No Fees/ Holding Costs – They do not charge a fee or a real estate commission when buying your house. Also, and many sellers forget about this, there will be holding costs to consider whether you are selling the house yourself or through an agent. The average time to sell a home is 150 days right now. During that 5 month time period you will have to keep paying your mortgage and utilities, costs that you won’t have when you sell your house fast to a real estate investor.
Problem Solvers -Investors are often problem solvers. They face sellers in a variety of different situations and their experience helps resolve the situation to everyone’s benefit. Whether it is divorce, bankruptcy, foreclosure or even title issues, real estate investors often have the expertise to navigate a resolution to these issues quickly.
Flexible Options – While the typical investor purchase involves a cash offer, there are other options, depending on your situation. An investor can also purchase your home on terms. Those terms can be owner financing terms or a lease option purchase. In these two scenarios, an investor is able to make a higher offer on your house. This can be beneficial in this market with so many homeowners that have little or no equity in their houses.

Cons of Selling to a Real Estate Investor

Price – In most instances, unless you are willing to sell on terms, an investor will not pay full market value for your house. Investors have their own costs to deal with and these are factored into the price that they will offer. They know the “strength” of an all cash offer and the fact that they are buying your house “as-is” with no inspections.
No License Needed – A real estate investor does not need a license to operate. This opens the door to scam artists. Some investors will operate out of an entity and some will operate as individuals. One way to avoid being scammed is to do your due diligence. Research the investor online. In addition, make sure any closings take place through a real estate attorney. You have the option of using their closing attorney or choosing your own. Either way, this will add a measure of protection to your transaction.