It never ceases to amaze me about what I hear when people talk about selling homes to real estate
investors. "Investors will only give me a low ball offer for my property" or "They only offer cash for homes and will just scam us while getting our homes." The problem with a lot of myths is that once they spread around for several years, people begin to think these opinions are true. Well, I'm here to dispel some common myths when it comes to investors and put your mind at ease about taking this route when selling your home.
Myth 1: I'll make less money with an investor versus working with a realtor.
Realtors are middlemen who broker the sale between the buyer and seller. They will take their cut out of the sales price for the work they put into marketing and selling your home, usually a standard 6 percent commission (3% to both agents involved). Selling directly to the investor lets you cut out that middle person and the additional fees that might be tacked on, especially when you are selling a home "as is" and it needs some work done to it, or there is work that is not permitted done on the home. No matter which route you choose, the end-buyer will most likely be an investor if the home needs renovating. You might as well reach out to the investor directly and save that 6% commission. Note - I normally suggest working with a realtor when the home is fully remodeled and market ready.
Myth 2: Escrow won't close in 10 days, that's not possible.
It is possible to close escrow in 10 business days. If both the buyer and seller get the paperwork completed quickly, if they talk often and communicate clearly, then, yes, it is absolutely possible. Oftentimes, though, sellers need more than 10 days to move, so we either close escrow when they are ready to move or we set-up a rent-back scenario.
Myth 3: All Real Estate investors are "sharks" who will take the keys and run.
Just like any business, there are scammers out there that will try to make the quick, fast buck. But most real estate investors are not "sharks". In fact, the flipping shows on HGTV, such as Flip or Flip, are shedding new light on the average real estate investor and how difficult the business actually is. Take a look at me - I'm a firefighter's wife and mother of 3 daughters. And my passion is meeting new people and remodeling houses.
As with any transaction, I always tell people to do their due diligence. Check out the background of the investor by asking for references, performing research at the Better Business Bureau, and reading review sites like Yelp. Honest investors aren't going to ruin their real estate careers by scamming homeowners. We rely on good reviews and word-of-mouth from happy home sellers, so we can continue to do business in our community.