When most people put their homes on the market they envision a new family entering the space to start their lives and begin making memories. While that is indeed a possible scenario, if you live in a particularly hot real estate market, like Denver, you may need to consider the fact that your home could appear as a great prospect to investors as well.
According to realtor.com, there are a variety of advantages and disadvantages of selling to an investor over a traditional buyer.
- A regular buyer typically needs to wait for financing. This delay can slow down closing, and you may have to wait longer to finish the deal. Investors often buy in cash and are ready to close immediately, which is a huge perk if you’re looking to sell quickly.
- Many investors are willing to offer flexible arrangements. For example, an investor might be willing to take over your mortgage, which is great if you’re underwater and struggling to find a buyer.
- Most investors buy a property “as is”: If you haven’t kept up with home repairs or if your kitchen needs an upgrade, this is an attractive option.
Working with an investor isn’t always better than working with a traditional buyer – make sure to keep these considerations in mind before making a deal:
- You won’t know who is buying your house. Investors aren’t legally required to tell you who is making the offer or why they want to buy your home. Some buyers may wonder if an investor only is interested because they know they can flip the property for more money.
- You may not get the best deal. Most investors only buy properties that are below market value, while a buyer might pay your asking price.