There’s a lot to weigh when deciding to go with an investor purchase vs with a real estate agent. It’s always great to have a breakdown of the top 10 reasons homeowners choose to go with investors. Find that comprehensive list below:
1- Speed
Investor Offer:
One reason to sell your house to an investor is because the process extremely streamlined. Investors are often able to make a cash offer and close on the house within a matter of days or weeks. Whether you need 3 days or 3 months, we’ve seen it all and have no problems extending or shortening the process, depending on what’s best for you.
While a common theme of selling with an investor is fast closings, that isn’t always the case. If you need a few months to scout out a new place somewhere in the Shreveport/Bossier area (or really anywhere) but want the security of knowing you’ve already got a contract heading towards closing on your current place, cash offers are there for you.
Realtor:
If you sell your house on the open market with a realtor vs with an investor, you’ll likely run into offers contingent on other people selling their homes first. A cash offer is very flexible and best when you don’t want to have to worry about coordinating your timelines about moving or selling around anyone else’s timelines.
Marketing with an agent is quite a bit longer. It’s a whole process of listing the property, showing it to potential buyers, waiting for offers, negotiating terms, and finally closing the sale. This process can take several months or even longer, delaying the seller’s ability to move on with their plans.
2- As-Is Sale
Investor Offer:
Investors typically purchase properties in their current condition, relieving sellers of the burden of making repairs or upgrades to make the home market-ready. This can be especially beneficial for sellers with properties in need of significant renovations or those who lack the financial resources or time to invest in repairs. This is one of the main reasons homeowners choose to sell their house to an investor vs list on the market with a Realtor. Right Time Home Offers is located right here in the Shreveport/Bossier area and we know what these local houses need as far as repairs and can get the work done faster and for a lesser cost, passing those savings onto you, the seller.
Realtor:
On the other hand, selling your house through an agent often requires sellers to invest time and money into preparing the property for sale, which may include staging, repairs, painting, landscaping, and other improvements to make the home more appealing to potential buyers. These expenses can eat into the seller’s profits and prolong the time it takes to sell the property.
3- Avoiding Listing and Commission Fees
Investor Offer:
If you want to avoid extra fees when selling over here in Shreveport/Bossier- selling your house to an investor vs with a realtor typically saves money in fees and closing costs. Since there’s no need for a listing agreement or commission fees, sellers can retain more of the proceeds from the sale. This can be particularly advantageous for sellers who are looking to maximize their profits or who are selling a property with a low market value.
Realtor:
Conversely, when selling your house through an agent, sellers are typically required to sign a listing agreement and pay commission fees, which are typically a percentage of the final sale price. These fees can vary but often range from 5% to 6% of the sale price, reducing the seller’s net proceeds from the sale. Often there’s another 3-5% sellers need to factor in for closing costs and concessions, which are standard in this type of down market. As a good rule of thumb, sellers usually take home around 90% of what their home sells for.
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4- Certainty of Sale
Investor Offer:
Selling your house to an investor provides sellers with certainty that the sale will proceed as planned. Investors typically have the funds available to purchase the property outright, eliminating the risk of the deal falling through due to financing issues. This can provide peace of mind for sellers, especially in uncertain market conditions or when facing time-sensitive situations.
Realtor:
When selling with an agent vs with an investor, deals can sometimes fall through due to issues such as buyer financing falling through, low appraisals, or other contingencies. These uncertainties can lead to delays or cancellations, causing frustration and disappointment for sellers.
5- Flexible Closing Timeline
Investor Offer:
Investors often offer sellers flexibility when it comes to the closing timeline. Sellers can choose a closing date that works best for their needs, whether they need to close quickly or require more time to make arrangements. This flexibility can be particularly beneficial for sellers who are relocating, downsizing, or facing other life changes that require a specific timeline for the sale of their property.
Realtor:
On the other end of the spectrum, selling with a real estate agent often means the closing timeline is dictated by the buyer’s financing and other contingencies, which may not align with the seller’s needs or preferences. This lack of flexibility can be hard for sellers who need to sell quickly or have specific timelines in mind.
6- Cash Payment
Investor Offer:
Selling to an investor typically involves a cash transaction, with investors able to purchase the property outright without the need for mortgage financing. This means sellers receive immediate access to funds upon closing, without having to wait for loan approvals or other delays associated with traditional financing. This can be advantageous for sellers who need to access cash quickly or who want to avoid the uncertainty of dealing with buyers who are dependent on financing.
Realtor:
When selling through an agent, the sale is often contingent on the buyer securing financing, which can introduce delays or the risk of the deal falling through if the buyer’s loan application is denied.
7- Privacy and Confidentiality
Investor Offer:
Selling to an investor offers sellers privacy and confidentiality throughout the process. Since the sale is often conducted off-market, there’s no need for public listings or open houses that may attract unwanted attention or inquiries from neighbors or curious onlookers. This can be particularly beneficial for sellers who value their privacy or who are selling properties with sensitive or personal reasons.
Realtor:
If selling on the open market, the property is typically listed on the multiple listing service (MLS) and advertised to the public, which can lead to inquiries, showings, and other disruptions that compromise the seller’s privacy.
8- No Need for Marketing or Showings
Investor Offer:
When selling to an investor, there’s no need for extensive marketing efforts or frequent showings. Since investors are typically experienced in evaluating properties and making quick decisions, there’s less emphasis on staging, photography, and other marketing tactics used to attract traditional buyers. This can save sellers time and effort, as they don’t have to prepare the property for showings or accommodate multiple visits from potential buyers.
Realtor:
If you are looking to sell with a realtor, sellers are often required to invest time and resources into marketing the property. This could include professional photography, virtual tours, open houses, and other promotional activities to attract potential buyers. This can be time-consuming and disruptive for sellers, especially if they’re still living in the property.
9- Avoiding Contingencies
Investor Offer:
Selling to an investor typically involves fewer contingencies compared to selling through a real estate agent. Since investors often purchase properties “as is,” there’s less need for home inspections, appraisals, or other contingencies that can delay or derail the sale. This streamlined process can be advantageous for sellers who want to avoid the uncertainty and potential complications associated with traditional sales.
Realtor:
If selling traditionally, buyers may include contingencies in their offers, such as inspections, appraisals, or financing approvals, which can prolong the closing process and introduce uncertainties for sellers. If issues are uncovered during inspections or appraisals, it may require further negotiations or repairs before the sale can proceed.
10- Reduced Stress and Hassle
Investor Offer:
Selling to an investor can be less stressful and hassle-free compared to selling through a real estate agent. Since the process is often more straightforward and transactional, there’s less back-and-forth negotiation, paperwork, and uncertainty involved. This can be particularly beneficial for sellers who want to avoid the emotional rollercoaster of traditional sales or who are dealing with time-sensitive situations.
Realtor:
If selling through an agent, sellers may encounter challenges such as dealing with multiple offers, negotiating terms, coordinating showings, and managing the closing process, which can be stressful and time-consuming. If deals fall through or encounter delays, it can be a headache to get the deal back on track. Once a deal that was supposed to go through, fails, it can be a permanent black mark on the listing. Other sellers will wonder what went wrong with the property and this can contribute to a less offers later on.
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