Are you interested in selling a house? If so, this blog post aims to provide a response to the inquiry, “Is it possible for an investor to purchase my house at a price close to the asking amount?” Continue reading to discover the answer…
When it comes to selling your house, you have a couple of options:
- Opt for the traditional approach by listing your property on the market, setting an asking price, and collaborating with a real estate agent to attract potential buyers (or taking on the task of finding a buyer yourself).
- Alternatively, you can bypass the conventional “sell-on-the-market” process and directly engage with a buyer, such as our team at LJE Property Solutions, who can provide you with an offer for your house.
If you’re curious about whether an investor would be willing to purchase your house at a price near your asking amount, here is the information you should be aware of:
Why Investors Invest
Investors engage in real estate investments with the goal of acquiring properties at a lower price, aiming to either sell them at a higher price or generate rental income. Consequently, investors are driven to seek out houses that are priced within their affordability range for purchase.
Prior to determining your asking price, take a moment to consider the advantages that an investor can offer…
Understanding The Asking Price
The asking price you set serves as a starting point for negotiations. Whether you sell through the traditional market route with the assistance of a real estate agent or to an individual buyer, it is common for the buyer to initiate negotiations by attempting to secure a lower price than your initial asking amount.
However, there are additional aspects associated with the asking price that many people tend to overlook. For instance, the asking price typically takes into account certain factors, such as the assumption that you have invested in repairs and maintenance to ensure your property is in excellent condition and appealing to potential buyers. Furthermore, it’s important to consider the ongoing expenses such as bills, insurance, and taxes that you’ll be responsible for throughout the period when an agent is attempting to find a buyer, which could potentially span several months. Additionally, upon a successful sale, you’ll be obligated to pay the agent a commission, which could amount to a substantial sum of money.
So your asking price has all of these things “built into it”.
An Investor Skips All This
By collaborating with an investor, you bypass all of these expenses. There is no need to invest in repairs or cleaning, resulting in potential savings of thousands of dollars. Additionally, you are relieved of the burden of paying bills, taxes, and insurance for an extended period while waiting for a buyer, leading to further cost savings. Furthermore, since you are not utilizing the services of a real estate agent, there is no commission to be paid, resulting in additional savings of thousands of dollars.
Add it all up: you save thousands of dollars by selling TO an investor instead of selling THROUGH an agent.
Opting to sell to an investor enables you to achieve a quicker sale while avoiding the associated expenses. This is why an investor might not be able to purchase a house at your desired asking price. However, the discount you may offer them is essentially money that you wouldn’t have received anyway, considering the potential months of waiting and uncertainty involved in attempting to sell your house on the open market.