What’s going on, YouTube people? Today, we’re talking about four reasons why you should sell your house to a real estate investor.
All right. So let’s just jump right into it. Number one reason why you should sell your house to a real estate investor, time. Time is probably the most important thing any of us have on this planet. And when you sell your house to your real estate investor, your ability to get stuff done in a quicker amount of time is going to be astronomically different, right? So when you sell to your real estate investor, you’re going to get rid of a lot of the hiccups and holdups that a normal real estate sale would have, financing contingencies, inspection contingencies. You’re not going to have to market the property. You’re probably going to have an investor that’s going to be paying you all cash, which is going to make escrow go a lot quicker. So your traditional non-real estate investor transaction can last anywhere from as quick as 30 days to most contracts, I think, are six months. And there’s no guarantee within that six months, anything will get done. So when you sell to a real estate investor, once you have that offer in hand, most of them can close in as little as two weeks.
Number two. Reason number two to sell your house to a real estate investor, as opposed to a more traditional means. It’s going to be the cost. So when you sell your house with a real estate agent, you’re going to have a cost associated with that, right? So you’re going to have to pay your real estate agent. You’re going to have to… A little known fact, when you sell your house, you pay the buying agent, that’s all covered in the agreement you have with your agent. They split their commission. So typical commissions nowadays are 5 to 6%.
You’re going to have to pay your closing fees, which are anywhere between 2 1/2 to 3%. And then if the market shifts, as it seems to be doing to a buyer’s market, you may be looking to pay their closing costs or a portion of it and making the repairs that they request. So your expenses can get upwards 10 to 15% of the cost of your house pretty quickly, whereas if you sell your house to a real estate agent, they will pay all that costs. I know on our last deal, we paid the seller’s closing costs. We asked for no repairs, and we paid all their escrow costs. So they didn’t pay anything. When we offered them 160 and paid their costs, they got 160. They walked away with that.
All right. So let’s go to reason number three, why you should sell your house to a real estate investor. So that’s going to be repairs. When you’re going to sell your house to a real estate investor, typically the repairs that you need to get done to sell your house or put it in a sellable condition don’t matter. Most real estate investors will buy the house as is. In fact, a lot of them look for houses that need to be repaired because that’s where they’re going to make their money.
Now, when you try to sell your house on the market, it has to be in a financeable condition. So the lender or whoever the buyer is, when they go to their borrower, that house is going to need to have a good, solid roof on it. It’s not going to be able to have foundation cracks that could cause it to be structurally unsound and all that kind of stuff. So when you’re selling to your real estate investor, repairs typically won’t hinder the sale at all since they’re going to be paying cash. They will buy houses in basically tear down condition all the way to cosmetic fixers with carpet and paint.
So that’s another reason why you should sell your house or why you should consider selling your house to a real estate investor. And the fourth and last reason why you should sell your house to a real estate investor is going to be the financing. So the biggest issue when it comes to traditional real estate sales nowadays is going to be buyer financing. So when you’ve got an offer on your house, again, the buyer’s going to be usually not in a position to pay all cash for your house. So they’re going to need to go either to a mortgage broker or a bank or some sort of money lender to get a loan. With lending standards being as tight as they are today, we’re seeing a lot of transactions fallout at that stage. And even if they are able to qualify, again, this is going to go back to the part where your house has to be in good condition. If they qualify, but your house doesn’t, they’re not going to finance it, or vice versa, if your house qualifies, but they don’t, they won’t finance it.
So that’s another major reason why you should sell your house to a real estate or why you should consider selling your house to a real estate investor, is there is no financing for them. They don’t need to worry about it. Most of the times they will be coming with cash either for themselves, or they’ll have a private money lender that is backing them up, that is allowing them to pay cash. So those are your four reasons to consider selling your house to a real estate investor. If you guys have any questions or comments, leave them below. Smash the like button, share this with your friends. Every little bit helps. I’ll check in with you guys later.