Homebuyers are either a traditional buyer - someone who's looking to live in the property - or an enterprising investor who's looking to sell it or lease it for a profit. Selling your property to the latter has its pros and cons. Look to these common instances of the ups and downs of having an investor buy your property.
- Many investors don't have to wait for funding, unlike the typical buyer who relies on a loan. Some investors are willing to pay in cash to turn the property around and sell it much faster.
- An investor might be more open to alternative or flexible arrangements, such as taking over your mortgage.
- Unlike most traditional buyers, investors look for and buy underwater property. They can take a seemingly lost cause out of your hands.
- Investors might be harder to come by for homes of certain types. Most investors want the biggest returns, which means that they might take more to underwater properties and foreclosures that they can flip.
- You don't always know who you're selling to. Investors are not legally required to disclose their identity nor their intended use for the property. In these instances, make sure that you're in no risk of being scammed.
- A traditional buyer is more likely to agree to your asking price; investors tend to be more keen on purchasing property below their market value. Look into the matter to ensure that you're not getting the short end of the stick.