Did someone suggest you should sell your house to real estate investors?
You’ve seen the signs and heard a story or two. There are a lot of misconceptions about what it means to sell your house to real estate investors. However, not every private home buyer or house flipper has the same focus or priorities.
It is an excellent option for many people. But you want to do it right to get the most benefit.
SELL HOUSE FAST FOR CASH
SELL YOUR HOME PRIVATELY
WE BUY HOUSES AS-IS
Know your home’s value
You should have a general idea of what your home is worth before selling your home. Look at comparable properties on the market in your neighbourhood in a similar condition with similar size and features. This will give you a good idea of your house’s potential selling price.
How do you know what your home is worth?
Online Home Value Estimator
You can try to enter minor details into an online home value estimator, including your address, when you purchased it, and how much you paid for it. This will give you a very loose ballpark range, but remember, the computer suggests this value sight unseen and doesn’t know the actual condition of your home. It simply estimates based on averages.
Real Estate Agent
Agents offer free comparative market analysis of houses hoping to win your business. These estimates can be more accurate if enough recent data is available.
Municipality and Insurance
Your home has an appraised value to determine property tax amounts and insurance coverage. While this option provides a general starting point, it doesn’t give a true market value without considering things like time of year, the number of properties on the market, or curb appeal.
Professional Appraiser
For the most precise calculation, professional appraisers, such as those used by mortgage lenders, provide detailed valuations based on the home’s condition and information similar to what real estate agents use.
If you want to sell your house to real estate investors, they will also provide a valuation of your home. MJS Properties can give you the same competitive analysis of your home that a realtor will do without the pressure of turning you into a client.
We also list recommended improvements necessary to compete with other homes on the market and general estimates of what they could cost.
Understand What As-Is Means
One of the primary benefits, if you decide to sell your house to real estate investors, is not having to do anything to prepare the house for sale. You don’t need to clean, paint, or fix a thing. Packing is not even required when we buy your home. Just take what you want with you and leave the rest.
Ensure the Money Makes Sense
One of the biggest myths we must defend is that selling your house for cash is a rip-off. With MJS Properties, that is simply not true. After determining what the house could be worth after completing all necessary repairs and upgrades, known as ARV or after repair value, we deduct our costs to make it happen.
Subtract the following from the After Repair Value:
- materials
- labour
- carrying costs
- expected return on investment
This equals the fair cash offer presented to the homeowner.
For the homeowner to determine if the offer makes sense, they should look at the estimated market price they could get by listing the house on the real estate market and deduct all the costs they would pay to make that happen.
Subtract the following from the expected selling price:
- commission and fees for marketing, staging, photography, the open house, legal fees, and closing costs
- repair, upgrade, and cleaning costs
- cost of your time and inconvenience to complete these tasks and throughout the selling process
- additional home expenses you must pay until the house closes, potentially on top of home expenses of a second house if you can’t align closing dates
If this equals an amount similar to the cash offer, it makes sense to sell your house to real estate investors.
They are not out to rip you off. Your house is a raw material for their real estate investment business. They earn their profit by doing the work and taking on the inconvenience you are giving up.
When you sell your house to real estate investors, you earn time
Who hasn’t once thought “I wish I had more time?” Few, I imagine. The cons of selling your home include the time and effort it takes.
If you need to sell your property fast or don’t have the patience to wait for all the steps in a traditional sale on MLS, a great option is selling privately to a cash buyer. The lower price investors offer is worth it if you need a quick sale to save time.
Choose a Reputable Investor
Not all house buying companies are equal and some, unfortunately, contribute to the poor reputation of the industry. When selling to an investor, make sure they are reputable and don’t ask you for upfront fees or delay the sale to find a buyer of their own.
While MJS Properties specializes in distressed properties, we are not targeting people to take advantage of them. In fact, it is just the opposite. We truly want to help others out of situations they can’t or don’t want to handle themselves. We have the skills and experience to solve big problems.
MJS Properties is proud of our past projects and gets excited about each new opportunity. We do the work to make it right for the next homeowner no matter what. It is not just about making things look pretty enough to sell, but truly transforming properties into something better.
