Home Investors are people or companies that purchase property with the intent of selling it for a profit at some point in the future. This can be done by re-selling the property, renting it out, or both. Many times, investment buyers will look for properties in up-and-coming neighborhoods that they believe will appreciate in value over time.
These types of properties can be very lucrative, especially if they are sold at or below market price. It is important to keep in mind, however, that predicting an area’s trends can be tricky, and a property you buy at rock-bottom prices may not rise in value the way you anticipate.
Another reason Home Investors are attractive buyers is that they typically offer straight-up cash for your property, making the closing process much quicker. This can be extremely helpful if you are in a time crunch and need to sell your property fast. In addition, many investment buyers will also agree to rent your property back to you while they are working on re-selling or renovating it, allowing you to continue to collect rental income on the home.
How Do Investors Calculate an Offer?
Home investors don’t have to be licensed real estate professionals, so they often use different standards when determining how much to offer for your property. For example, one common rule is that an investor should not pay more than 70% of the final sale price minus repair costs.
This rule helps ensure that the investor will have a profitable return on their investment, even after paying for any necessary repairs. As a result, this is why many investors are willing to purchase problem properties and take on the extra work of fixing them up.
Investors also usually make lower offers than what you could get on the open market because they are looking to turn a quick profit. This is why it’s important to consult a real estate professional before accepting an investment buyer’s offer.
If you decide to sell your property to an investor, be sure to ask for a written contract and do your homework to ensure you are getting a fair deal. Also, be sure to hire a qualified real estate agent to represent you.
In the real estate business, there are plenty of good and bad investors, so be sure to do your research before selling to an investor. By taking the time to find a reputable, honest, and experienced investment buyer, you can make a smart and profitable decision for your property.