Have you been approached by an investor asking to buy your Charlotte, NC home? If their pitch is convincing, you may be wondering if you should sell them your property.
It can be very beneficial to sell to an investor because it’s an immediate sale with next to no effort. There's no need to prepare or renovate your home either. However, your profit will often be lower, though you'll get the payment - usually in cash - right away.
Read on below before you make this big decision.
Why You Should Sell Your Charlotte, NC Home to an Investor
Here are several reasons why you should consider selling to an investor:
No Financing Delays
Selling to an individual buyer can be complex, if not time-consuming. They usually need to finance their purchase, which could take about 45 days (if they’re qualified).
If they’re unable to get approved, your buyer may be denied a loan - which means the sale will fall through.
As a result, your Showcase Realty agent will need to find another buyer. As for you, this could mean waiting for several months.
You don’t have to worry about these financial delays if you're selling to investors. They’re quick to pay - often in cash - so you can sell your home in just a few weeks (instead of months).
No Need for Repairs and Renovations
When you list your home on the open market, you may need to renovate it to make your property more inviting.
The bad news here is renovations are pretty costly. If you don't have the money for upgrades, you'll find it harder to sell your home.
You don’t have to worry about these issues if you're catering to an investor.
They'll buy your home as-is, meaning they won't demand modifications and repairs. This means that dealing with an investor is ideal if you want to sell your Charlotte, NC home minus the needed repairs.
No Need for Preparations
Likewise, you don’t have to go to the trouble of prepping your home if you’re selling to an investor.
Since they’re buying your Charlotte, NC home as-is, you can skip staging it.
You don’t need to host an open house, among many other things.
Again, you’ll be saving some money because you don’t have to pay for preparations and staging.
You can check my blog about why investors are attracted in Charlotte, NC here.
More people, especially first-time buyers and investors, can now afford to buy a property. #NancyBraun #ShowcaseRealty #CharlotteNCHomesForSale #CharlotteNCRealEstatehttps://t.co/LChWEpFP5I pic.twitter.com/P1LqTm3N1b— Showcase Realty (@ShowcaseRealty) April 2, 2022
Do Investors Pay More For a Property?
Unfortunately, investors do not pay more for a property. Their purchase is driven by profit, which they’ll try to maximize by offering a lower amount.
That said, you’ll get the payment (often in cash) right away.
Individuals usually pay higher because they'll do everything to get their ‘dream home.’
How Much Do Home Investors Pay for Houses?
Generally, an investor will offer 50% to 85% of your Charlotte, NC home’s market value. That said, the industry average is at about 65%.
How much you get will depend on three things:
- The ‘attractiveness’ of your home (based on value, scarcity, and location)
- The Charlotte, NC property’s current condition
- The investor interested in your home
There are investment companies that make a profit out of volume, they will likely offer the most money. Some pay for as much as 80% of your home's market price.
On the other hand, buy and hold investors are willing to pay 60% to 75% of your home's value. They offer lower amounts of cash since they purchase properties to transform them into rental spaces.
The lowest profit will come from house flippers, who’ll pay just 50-65% of your home’s value.
Note that flippers will deduct the cost of repairs from the home’s value. So if your $250,000 house needs $50,000 worth of repairs, you’ll only be offered $130,000 max.
What Percentage of Home Sales Are to Investors?
Given the benefits of selling to an investor, it’s not surprising that 1 in 6 houses are sold to these individuals. In other words, 15.6% of homes sold last year were to investors.
Considerations for Selling your Charlotte, NC Home
There are pros and cons to selling your home to an investor. That’s why you will need to consider these factors before you decide.
Speed of Sale
Maybe you need a large sum of money. If you want to get cash fast, it’s best to sell your Charlotte, NC home to an investor.
However, if you’re not in a hurry, you can always wait for a higher-paying individual buyer. You will likely sell your home for market value in today's Seller's market.
Is your home in excellent or dire condition?
If it’s in great shape, Nancy Braun can help you find a more profitable individual buyer.
If your home needs a lot of work and you don't want to make repairs, you should consider selling to an investor. They’ll buy your home as-is, even if it requires a lot of repairs and upgrades. Again, Nancy will assist you in finding the right deal.
Either way, Showcase Realty offers you a guarantee to get your home sold in 60 days, or Showcase Realty will pay you *$2,500! (*ask about conditions)
Repairing and renovating a Charlotte, NC home can be quite expensive. If you don't have the money for this, selling your property to an investor is better.
Individual buyers may require repairs before moving in, which is bad news if you don't have the money.
Maximizing Profits When Selling to Investors
Although investors generally pay less for properties, you can still get a good payout. All you need to do is:
- Know your Charlotte, NC home’s market value. Get a third-party appraisal instead of just taking the investor's estimate.
- Make as many repairs as you can. A lot of sellers give in to investors because they don’t have the money to make repairs. You don’t have to pay a lot for repairs since there are repairs you can make with what you have.
- Increase your curb appeal. Cleaning, landscaping, and painting are improvements that will raise your home’s value.
- Get a second opinion. You don’t have to accept the investor’s offer if you don’t like the terms. You can always get a second opinion if need be.
How To Find an Investor for Your Property
If you’ve decided to sell your Charlotte, NC home to an investor, you can always ask around. That said, it’s best to seek the help of experts like Nancy Braun. That way, you can make the best decision and also know that you’re dealing with legitimate property investors if that is what you choose. Nancy and Showcase Realty offer a Hassle-Free Home Selling Opportunity. This involves:
If you consider selling your home in North Carolina or South Carolina and prefer a quick, private, and stress-free process, don't hesitate to contact Nancy Braun, Owner and Broker-In-Charge of Showcase Realty. I am able to offer:
- Cash purchase
- No Appraisal
- No Showings
- No Open Houses
- No repairs
- Tell Nancy what price you want and she will tell you what she can do - no sales pressure
- Flexible closing date - 6 days to 6+ months - perfect if you are buying or building a new home
- "Rent Back" Option
- She will not resell your contract to other investors
- Local investor - not dealing with someone out of town or state
- 26 years experience
- NC & SC Licensed Real Estate Broker
- If you are behind on payments, Nancy can: take over payments, bring loan current, pay off mortgage, stop auction, and do a short sale.
Learn more here:
Selling your Charlotte, NC home to an investor can be a good choice since no financial delay is involved. You don’t have to prepare or renovate your Charlotte, NC home if you do.
The drawback, however, is your profits are almost sure to be lower with investment firms. Depending on the investor, you’ll only get about 50% to 80% of your home’s value. Consider Showcase Realty’s Hassle-Free Home Selling Opportunity for the best value.
Given these pros and cons, you need to be careful in making the decision. Make sure to consider the speed of sale, the home’s present condition, and your financial status.
Once you’ve decided, don’t hesitate to seek the help of Showcase Realty agents. Expert, Nancy Braun, can assist and advise you.