The rehearsed pitch sounds great. We pay cash, no inspections (not true), no contingencies, no repairs, leave what you want, and close quick (or slow if you prefer). So far, so good. What’s missing is how little they want to pay for the home (#steal). If you want to close fast and lose money, read no more. Just call the friendly face belonging to the person who classifies your home as ugly, distressed, or a way to make a quick buck.
Otherwise, work with a professional who appreciates the history and sentiment associated with the home and is willing to pay or get you what it’s worth.
Your home likely does NOT deserve to be sold “as-is” to an investor. Doing so most often results in you leaving money on the table. Money that could be used for someone’s care or legacy. Investors make money by buying low and re-selling or renting the property.
How Investors Make Money
- FLIP IT to another investor – doing nothing to the home and selling it for more than they are buying it for. I’ve heard “flippers” brag about making $60K in one month on homes that they have done nothing to.
- LIST It – Promote it for the world to see (targeting owner-occupants who will call it home and fix it up over time or another investor who still sees an upside). This is one reason why investors prefer not to buy “listed property”.
- UPDATE and LIST it for full market value. Some of these updates are fantastic/transformative while others are embarrassingly cheap – so be sure to have these homes inspected.
TED TIPS
- List the home with an experienced licensed real estate. You can expect your agent will negotiate better terms and protect your best interests. Even though you will pay a commission, the goal is to walk away with more money (compared to going it alone). The odds are with you.
- Deal directly with an investor who’s also a REALTOR® (a licensed agent who belongs to a local Board of REALTORS®). This provides some assurance that you’re dealing with someone who adheres to a code of ethics, has some oversight, and will provide fair and honest treatment. This is still a far second from listing the home with a real estate agent – for you are not represented.
- Trust but verify – Use online resources like BBB, Missouri Case Net, Missouri Real Estate Commission and get references.
Here’s a website about protecting the nest egg you call home – Click Here
Here’s a short video on the subject – Click Here