When selling your home to a real estate investor, you will want to make sure that the questions on this list are answered. These six questions ensure that you have given the buyer all of the information they need before making an offer. If any of these questions are not answered, it is likely that there will be a delay in closing on your property and may even cause you to lose money if you had already put down earnest money.
How long have you been buying houses?
When your home has been on the market for a long time it is tempting to jump at a cash offer. Despite the quick and easy process that involves, we would encourage you to take the time to find out who you’re working with.
Make sure that the company you’re looking to make a deal with is local to your community and do the research to make sure you know exactly who you’re working with.
Find out how many houses they have successfully purchased & how long they’ve been buying in the local area. This information can be important because there are so many scammers out there that do not have your best interest in mind. Some can also be lead companies that will just sell your home off to the highest bidder after they short you.
What do past clients say about their experience?
When researching the history of a company it’s also important to find out what the experience of others was when working with this company. It’s going to show you how trustworthy this buyer is and also how easy or difficult it will be to work with this company to sell you a home. Check out reviews on Google, BBB, Houzz, Facebook, Instagram, or even the company’s website.
Can you provide immediate proof of funds?
If you’re dealing with a cash buyer, a great way to weed out the shady guys is to ask if they can provide immediate proof of funds. Don’t fall for the trap of those so-called investors who will sign a contract granting “equitable title” and then turn around and sell your home for a quick profit to a real investor.
Asking for proof of funds is standard procedure so don’t feel wrong for making such a request. If the investor has the cash on hand, they will be more than willing to show you the proof that they have funds available. Beware if they push back on this request or flat out refuse. That is the behavior of a shady buyer and you should move on to the next buyer.
Do you require a home inspection?
When selling to traditional buyers they will almost certainly make the offer contingent on a home inspection. Depending on how that goes, you can be stuck having to pay for the repairs or be prepared for them to offer you a lower price to get the deal done. When your home is in rough shape, the inspection can be long, tedious, and buyer demands can become almost unbearable. Depending on how that inspection goes, if it’s bad enough, the buyer will even be inclined to walk away from the deal and leave you moving back to where you started with no buyer at all.
Using a we buy homes company can be a better path for you if you’re not looking to go through the inspection process, if your home is in rough shape and you know you don’t want to do repairs or just straight up can’t afford them. Real estate investors are interested in purchasing your home no matter what condition the home is in. Their goal is to actually buy rough homes with the goal of renovating them, so your home could be the perfect prospect for a cash buyer.
Do you charge closing costs or other fees?
Do real estate investors charge closing costs or fees?
The short answer is no. Real estate investors are different from traditional buyers in that they work with sellers to buy their property and pay cash for it at the time of purchase. As such, they don’t charge any closing costs or commissions. The benefits of working with a real estate investor include: minimal paperwork, lower rates than banks and credit unions, and more flexibility on terms. Be sure to double check and ask, if there are any fees make sure that you fully understand them because if not you could be working with a shady investor.
How long is your closing period?
One of the benefits of selling your home to a cash buyer is ease of the sale. That means a fast, efficient process. A good way to determine how simple the transaction will be is to discuss closing details.
A trusted, experienced cash buyer will be able to close in as little as 2-3 days. However, also look for a buyer who offers a flexible timeline based on your needs (not theirs) and will work to fit your schedule.