Generally, I wouldn’t recommend doing a real estate deal without the expertise of an agent. However, there are a few specific instances where selling off market to an investor, like Colorado House Buyers, would be beneficial to the seller. Colorado House Buyers offers a solution when someone wants to sell their house quick to a cash buyer, with no inspection or appraisal contingencies, whether that be an inherited property, investment property, or a house that you have lived in for ages and no longer have the funds to invest back into the house for modern buyers.
Some benefits to selling off market to investors are:
When you list with a real estate agent, you typically pay 6% of the sale price to the selling and buying agent. While FSBO (for sale by owner) sellers sometimes allow buyer’s agents to show their properties, these commissions are generally only around 2.5 to 3%. Colorado House Buyers know the burden for the owners to pays these commissions, so they often take no commissions even if there is an agent representing the investor. On a $300,000 FSBO house, you’ll save $18,000 in commissions alone if you sell your house off market. In addition to saving on commissions, we will also pay for the closing costs where 2% of the purchase price is paid by the seller.
When a real estate agent is involved, the clients are most likely conventional homebuyers. These homebuyers want to make sure that everything is in acceptable condition and that costly items like the sewer line is within working condition and there are no evident cracks. They don’t want to move into a house with questionable pipes and have their basement flood a month after closing, so 99.9% of conventional buyers will have time to inspect the whole property and ask for costly repairs to be done, and refusing the repairs can cost you their contract. Most of the time investors will do more than a facelift remodel, meaning they would replace systems that are no longer functioning, and Colorado House Buyers is happy to buy a property with system issues.
A typical closing for conventional buyers is 30-45 days, if they don’t terminate the contract due to inspection items. If they do decide to back out, then you’re stuck starting the process over again. Colorado House Buyers close on 100% of the properties we put under contract and can close on your timeline, whether that be in 10 days after we see your house or 95 days.
It’s no fun to roll out of bed with a head cold and a pile of laundry awaiting attention only to have a surprise phone call from a real estate agent wanting to show your house right then. If you go the FSBO route, you’re the one scheduling showings. Furthermore, you don’t have to arrange to be away from the house during a showing like you do with real estate agencies, because you’re the one running the show. Also, Investors don’t care if your house is dirty or there’s a non-functioning bathroom down to its studs from a remodeling project that never was finished, there’s no need to spend more time and energy making the house presentable.