Pros and Cons of Selling Your Home to a Property Investor

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Published On

May 21, 2021

Selling your home can be a stressful process as much of your sale is reliant on others. Finding
the right buyer to sell your home to can be a fairly time consuming task and each day on the
market can cost you more, reducing your overall profit.

By seeking the opportunity to sell your property to a property investor you can limit the stress
you experience and potentially maximise your profit. Within our article we explore some of the
key reasons selling your property to a property investor can be advantageous to you.
Meanwhile, there is always the opportunity for disadvantages to creep in, which will also be
explored within this article.

Pros

Money

The main goal of selling a property is maximising the return of investment you receive. This
means you are ultimately tempted to sell your property to the highest bidder. By selling your
property to a property investor, you can increase your opportunity to achieve a successful sale.

Closing

Many property investors are likely to pay for your property in a cash payment. When this is the
case, you can experience the advantage of a reduced closing date on your property sale. This
can be particularly great for those looking for a quick sale.

Flexibility

A key advantage of selling your property to investors to be highlighted is the opportunity to sell
your property in its current condition.
Property investors typically aim to buy properties they can
add value to. This works in favour of those selling their property as it eliminates the need for
sellers to carry out property renovations. This ultimately saves the seller money.

Cons

Selling your property to an investor offers many advantages, however, there are clear
disadvantages which must be considered.

Offers

Selling your property to a property investor presents you with the opportunity of gaining a cash
sale.
Meanwhile, you also limit the need to carry out repairs on your property. This, however,
does present a key disadvantage that must be taken into account before deciding on selling via
this avenue.

Committing to the opportunity of selling your property to a property investor can reduce your
profit from the sale.
Most property investors are happy to buy a property in cash, and often, in
any condition, however, this comes at a literal price.

Investors are aiming to secure a property with the ambition of adding value to it. This means you
are likely to sell your property below market value to a property investor as a result, hence,
consideration is vital.

Timing

Although we mentioned selling your property to a property investor offers the advantage of
bringing forward your closing date, this is dependent on your property investor. If you choose to
sell your property to an overseas property investor this time could be extended rather than
reduced.

This is crucially important to keep in mind alongside your objectives when you are deciding the
best investor to sell your property to.

Conclusion

There are many advantages and disadvantages presented by selling your property to a property
investor to consider when it comes to selling your property.

By selling your property to a property investor you can potentially experience the advantage of
receiving a cash payment.
This has the opportunity to allow you to achieve a sale before the
closing date of your property.

Meanwhile, the need for you to sort repairs or renovate your property are reduced as a property
investor is likely to seek a property that allows them to add value.

On the other hand, there are some disadvantages to be equally aware of. As mentioned,
investors often aim to pay cash for a property and are not disheartened by a property which
requires repairs. This, however, means by selling your property to an investor you risk receiving
a sum which is below market value.

Lastly, selling to overseas investors can present time constraints on the sale of your property.
This is essential to be aware of before committing to this sale

Disclaimer: This is information based on our knowledge gained throughout years of experience, education and learnings. This information is open to interpretation, therefore, you must carry out your own due diligence regarding the subject.

References:
Ohan Antebian. (2018). Pros And Cons Of Selling Your Home To An Investor. Available: https://www.sold.com/real-estate-tips-advice/pros-and-cons-of-selling-your-home-to-an-investor.
The House Shop. (2020). Pros And Cons Of Selling A Property To Investors. Available: https://www.thehouseshop.com/property-blog/pros-and-cons-of-selling-a-property-to-investors/21604/.
Emma Diehl. (2020). Should You Sell Your House to an Investor or List on the Open Market?. Available: https://www.homelight.com/blog/should-i-sell-to-a-home-investor/.

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