Are you looking to sell your house to an investor in Massachusetts? This one’s for you.
Traditionally, if you wanted to sell your house, you needed to work with a real estate agent to handle the process for you. The agent would help you qualify buyers and negotiate offers — then take a 5 or 6% commission off the final sale price.
Commission fees can eat into your earnings, which is why many homeowners are turning to investors for their home selling needs. But like anything else, there are pros and cons to consider before making your decision.
So, should you work with a real estate investor, and how do you find one in Massachusetts?
What is a real estate investor?
Real estate investors buy houses in any condition, provide some TLC, then usually resell or turn them into rentals. A key difference between real estate investors and traditional buyers is that investors don’t mind buying homes in bad shape.
If you want to sell your home to an investor, you’ll want to approach an active investor — not someone who puts money in real estate trusts (passive investors.) Additionally, each investor’s tactics and end-goals will be different, so it’s essential to keep this in mind as you do your research.
When to sell your house to an investor?
Not everyone wants to sell their home to an investor, but there are situations where it makes sense to do so, such as:
- Foreclosure: If you’re facing foreclosure, you will likely want to sell your home quickly. In this case, selling to a cash home buyer & investor may be a good idea as they can make an offer fast (immediately or within a matter of days) and streamline the closing process.
- Divorce: Selling your home to an investor can benefit those looking to cut ties with their ex-spouse, as it can help you close a deal quicker than you could with a traditional sale.
- You don’t want to invest in repairs: If you need to move and don’t have the financial resources for repairs, selling to an investor provides the freedom and flexibility to get out of your home faster, without sinking a bunch of money into fixing it up.
How to find an investor to buy your home in Massachusetts?
Finding an investor to buy your home isn’t as difficult as you might think. Here’s how to find an investor to buy your house in Massachusetts.
Ask your friends and family
Whether you know someone who has an impressive portfolio or someone looking to get into investing, it’s worth asking whether they’d be interested in your property. Even if it doesn’t work out, they might be able to refer you to potential buyers.
Use the internet to find private investors
These days, just about anyone can be an investor. While this is great for small, low-risk investments, high-risk investments like real estate with low liquidity aren’t the time to take a chance on an inexperienced investor.
The first step is identifying investors you want to approach. Begin with a list of qualifications you want the investor to have. For instance, you want them to have real estate experience in your area.
Turn to family offices
Family offices are private firms that look after the financial investments of wealthy families who have obtained over $100 million of investable assets. Family offices are always actively looking to increase the wealth of their respective families, and as such real estate investment is an everyday activity in these establishments.
Look for a reputable cash home buyer
A reputable cash buyer can buy your house in any condition — and they can do it fast. Using a cash buyer removes a lot of the hassle involved in selling your home, making them appealing for those looking for a quick and straightforward sale.
Pros and cons of selling your home to an investor
Selling your home can be overwhelming, making it difficult to make crucial decisions as emotions are running high. This is where having a good listing real estate agent on your side can come in handy as they’ll be able to keep you grounded while contemplating important decisions.
With this in mind, here are the pros and cons of selling your house to an investor in Massachusetts.
Pros
- Selling to an investor can save you money in the long run: Repairs, realtor commissions, and closing costs can add up if you’re not careful. Selling to an investor means avoiding many typical costs of selling a home, such as costly repairs, appraisals, and inspections.
- Investors will buy your home as-is: Traditional buyers are less willing to purchase a home with a laundry list of repairs. If they do decide to buy, they’ll expect certain things to be fixed before closing the deal. On the other hand, investors don’t shy away from buying properties that need some work.
In fact, some investors intentionally seek out run-down homes to buy real estate at bargain prices. If you’re not willing or able to invest in home repairs, selling to an investor might be the way to go.
Cons
- You won’t necessarily know who you are selling to: Not knowing who you are selling to can make some people uncomfortable, as it’s not easy to spot red flags when you don’t have a personal relationship with the investor. As long as you go with a reputable investor with good reviews, you shouldn’t have any problems.
- You might not sell your home at the actual market value: Realtors want to sell your home for its market value, as the higher the value, the higher their commission. This differs from investors since they mainly look for under-market value homes to get the best ROI.
Sell your house in Massachusetts fast for cash
Selling your home to a reputable cash buyer is one of the easiest ways to sell your property in Massachusetts. We buy houses in any condition — even if extensive repairs are needed. Best of all, our cash offers can mean money in your pocket faster than a traditional, drawn-out sale process.
Ready to get your cash offer? Fill out our online form or give us a call at 781-309-7085.