When you’re selling your home, one of the biggest points of consideration is how much money you’ll receive once the house is sold. If you’re considering selling your home to an investor, there are a few things to consider when it comes to the deal, including how soon you need to sell your home and the current condition.  If you are considering selling your house “as-is” for cash to an investor you can expect to walk away with 10-15% less than if you fixed your house up and listed your house with a realtor, but that’s not always a bad thing as explained below. 

Understanding The Numbers

To really understand the difference in cash you’ll receive from an investor versus a traditional real estate agent, we need to dig deeper into the numbers. Often times sellers have a realtor tell them that they can sell their house for $250,000 in the current the market, while the “as-is” offer they received from a real estate investor came in at $175,000. So, that looks like a lot larger of a discount than 10-15%. In this case, you’re probably thinking “Is the investor trying to low-ball me as a seller?”, and the answer is, “Not necessarily”.  In many cases, a realtor is going to give you the highest possible price your house could sell for after repairs. But your house may need $25,000 in work in order for it to sell for $250,000. 

Once you factor in the rehab of $25,000, realtors fees at 6% of $15,000 and closing costs of $5,000 the actual amount the seller walks away with would be $205,000.  This is also assuming the buyer does not ask for any repairs during the inspection and the seller is living in the house up until the closing date and not paying for a mortgage, taxes, insurance, and utilities while living elsewhere.  Once all the costs are actually considered in the process of selling a house with a realtor the difference in the walk-away amount is somewhere around 10-15%.

What Are The Benefits Of Selling To An Investor?

There are two major benefits to selling your home to an investor — convenience, and lack of risk. Depending on how much work a house needs to be ready for a listing, the selling process could last anywhere from 4 to 12 months.  That being 4 months if the house needs little to no work, and 12 if it needs a huge rehab.  The more rehab a house needs the more it makes sense you sell to an investor, as most people can’t wait.  Many people do not have the time, money or expertise it takes to renovate a house.  Even once the house is renovated and ready to list you are only halfway there.  To list a house with a realtor you oftentimes must commit to a 6 month listing agreement, clean, declutter and sometimes stage your house, leave the house every time there is a showing, find a qualified buyer, go through negotiations, go through an inspection period, renegotiate after inspection, and wait for conventional loan final approval and closing. 

By selling to an investor you avoid the whole process of rehab and the painful process of selling through a realtor and conventional buyer.  You also avoid the risk involved in doing a renovation.  Finding a good contractor, with good pricing, and choosing the most up to date materials that buyers today are looking for is no easy task.  We have heard countless stories from homeowners about contractors who have done poor work, overcharged or put in materials that were not the most up to date. 

Find An Investor That Provides An Honest “As-Is” Offer

Selling your house to an investor is definitely not the way to go for everyone, but if you are looking to avoid the time and risk that is involved in a rehab and realtor route it may with worth exploring. If you choose to go down the investor route, look for one that offers an honest “as-is” offer for your home, but understand that you won’t sell your home for its market value for all the reasons stated above. Here at Rise Realty, we pride ourselves on providing potential sellers with a transparent, honest cash offer for their house. Find out how you can sell your house fast in Dallas by contacting us today!