Should You Sell Your Home To Investors
I called the home seller to introduce myself as well as confirm the time and location. She didn’t seem overly excited to sell her home like most people are. I didn’t think much of it.
She needed a second witness to sign off on the General Warranty Deed, so I provided the witness.
We all met bright and early Friday morning at a local coffee shop.
The seller signed the closing documents quickly. Barely glancing at the paperwork.
Was she in a hurry to go somewhere else?
Not really.
We finished signing and I packed up my notary stamp and journal, my box of blue pens, and stuffed the signed documents into the FedEx envelope to ship back to the title company.
When I put my stuff in the car and turned around, she was still sitting there.
I decided to go back inside. I was tempted to get a cup of Honey Citrus Mint Tea. As I walked toward the door, the seller was coming toward me.
I realized she wanted to ask me something.
“What am I supposed to do with the keys?” she asked.
The title company hadn’t given me any specific instructions about collecting anything from her.
So, we sat back down at a table and tried calling a few numbers to see if we could get somebody on the line who could tell her what to do with them.
She Sold Her Home Cheap To An Investor
Long story short, she had sold her house to an investor in another county. They had told her to leave the keys with the title company at signing. But the title company was a good four to five-hour drive away.
She got ahold of one of her contacts before I did. I could only hear one side of the conversation, but it sounded like they wanted her to leave the keys under the rug or something.
In the end, they just told her to hang on to the keys till the buyer got ahold of her to pick them up.
It was a strange situation. Normally, the keys are exchanged at signing. Either the seller leaves them at the office for the buyers to pick up. Sometimes the title company will give me keys to hand the buyers after the signing is complete and the lender has approved funding authorization.
But I’d never had something quite like this happen. And it didn’t make much sense until she explained what was going on.
Investors Make ‘Cash’ Offers For Less Than Your Home Is Worth
An investor had called her, making her a cash offer. If you own a home, you’ve probably received calls from them offering to buy your home for cash. Typically at about 70% of what it’s worth.
They make it sound like it’s better than using a realtor because you don’t have to pay a realtor or closing fees. But investors usually pay much less than your home is worth anyway. So, it doesn’t really make much sense to me. Unless you just want to sell fast and don’t have to deal with buyers.
But in such a crazy hot market like we’re in, it doesn’t make sense to sell your home to the first person who makes you an offer. I’ve been to several signings recently where I’ve seen home sellers take the first offer they get.
An investor had offered the homeowner what they thought it might be worth and the seller accepted. Without checking to see what it was really worth, or even taking the time to see if someone else might make them a better offer.
It’s My House And I Can Do What I Want To…
Which I think is crazy, but hey, it’s their house and they can sell it for whatever they want. Right?
But even if you don’t want to go the usual route of showings and inspections, at least talk to a couple of different investors to get several quotes. Or talk to a real estate agent who can tell you know if the price you’re getting makes sense.
Now, in total transparency, I am a real estate agent with Coldwell Banker Realty, and I work with a lot of investors. So, I see both sides of the coin and see advantages and disadvantages either way.
Explore Your Home Selling Options
All I’m saying is, explore your options to get as much money from your home as possible in the time that you have to work with.
If you’re in a hurry and need to sell fast, then a quick cash offer may make sense.
Get Several Offers For Your Home… Not Just One
But here’s an idea for you. This is what I would do if I wanted to maximize the amount of money I made from the sale of my home.
First, get several cash offers for the sale of my home, and see how long they’ll give me to decide and take the offer. It might be seven days or a month. Then market the home and see if you can find other buyers that were willing to pay more within that time frame.
If I didn’t get a better offer then I would take the cash offer. Which is nice because you have a guaranteed backup plan.
How To Get Top Dollar For Your Home With A Guaranteed Sale
That’s exactly what I do for my clients who want to sell their homes. I work with a company that gives you a quick cash offer for the sale of your home. No showings, no stress, no worries. They’ll buy it quick and easy.
And they give you up to 45 days to find someone else that beats the price they are offering for your home. If someone else does make you a better offer, you made more money for your home. If you don’t get any other offers, then at least you know you have a guaranteed buyer willing to pay cash for your house.
On top of that, they’ll also give you a leaseback so that you can continue living in your own home even after you sell it to them, which is a nice option if you need while waiting to close on the new home that you are buying.
Selling Your Home In Florida?
If you want to sell your home in Florida, I can help you…
- get a guaranteed cash offer,
- upgrade your home with any renovations needed with no money out of pocket,
- market your home far and wide for a better offer, and
- extra time to live in your home even after you sell it
If you’re interested in listing your home for sale in Florida, inquire about your options by filling out the form below.
