Do you need to sell a house in the Houston area? Then this blog post will answer the question, “Will an investor buy my house in the Houston area for close to asking price?” Keep reading to find out the answer…
What are your options for selling your house?…
- You can List it with a local realtor, in hopes of marketing it successfully and finding a buyer.
- You can try to sell it on your own (FSBO-for sale by owner), and hope you find a buyer.
- You can bypass the whole marketing, hoping, and finding process by selling directly to an investor (like American Home Buyer based in Houston, Texas).
Easy enough. But the question remains: “Will an investor buy my house in the Houston Area for close to asking price?”
Here’s what you need to know and understand:
What Is The Investor’s Agenda?
Investors buy houses generally, for one of two reasons. The first reason is to remodel the house and resell it for a profit. The second reason is to keep the house as a rental unit. In either case, investors need to make a profit and therefore, have to locate houses that are priced affordably. They are not buying your house to live in it, and therefore don’t really care about a lot of other things a retail buyer would… like how clean it is, or can you wait until they sell their current house. Click here to see a good FORBES article on the Pros and Cons of Selling to an Investor.
What Is My Asking Price?
When you sell your house through a realtor to a “retail buyer,” your asking price has a lot built into it. You know they are going to offer less, so you have to have some “wiggle room.” Plus you have to build in the realtor’s commission, and the closing costs. Plus you have to cover whatever repairs you do to the house. Finally, since this process could take 6 months, you have to cover your mortgage and any upkeep to the house for that time period. All of this has to be built into your asking price, and unfortunately, it still may not sell.
The Benefits Of Selling To An Investor
When you sell your house to an investor, you don’t have to build anything into the asking price.
- There are no repairs required
- You don’t have to clean anything up
- You can sell instantly, so no more mortgage, utilities, insurance, maintenance, etc.
- No commissions, fees, or closing costs
- No hoping, marketing or waiting
It’s easy to determine your asking price when you sell to an investor. You don’t have to worry and wonder if there will be any other fees or costs. The only “costs” you will have is whatever you already owe on your house like your mortgage and taxes. Click here for detailed comparison of selling to a HomeBuyer vs. Listing.
A Word Of Caution: Make sure the investor you are selling to is actually going to buy the house! There are a lot of “wholesalers” out there (especially in Houston). A wholesaler is someone who is planning on flipping the house to another investor who will actually buy the house. The problem: if he can’t find another investor, then he may not be able to go through with the purchase, and you have to start over. Just ask them if they are a wholesaler. Are they actually going to close? One way to detect a wholesaler: they will want to add the phrase “and or assigns” after their name on the purchase agreement. There is nothing wrong with Wholesalers—as long as they disclose everything upfront to you. What you want is a company like American Home Buyer who can actual purchase the house for cash, or who will be honest with you if they are going to Wholesale it.
So, Will An Investor Buy My House for Close to Asking Price?
Selling your house to an investor allows you to sell faster, easier, and without all the traditional costs. You are cutting out the middle man and selling straight to the buyer-without the wait! You can now figure an asking price without all the other stuff built in, and this asking price should be much closer to what an investor can pay.