Cash Home Buyers Vs Real Estate Investors: Who Should You Sell To?

Posted On Tuesday, 22 June 2021 21:19

Are you thinking of selling your property? At this point, you probably ask yourself to whom should you sell your property, whether to a cash buyer or a real estate investor. To know the answer to your question, look at each definition to have a clearer understanding of these options when selling a property.

What Is A Cash Home Buyer? 

A cash home buyer makes property sales fast and easy. You can easily find and recognize them because they advertise their services with the following phrases: 

• Sell your property fast
• Sell your home as is
• Sell your house without repairs 

You can find many cash home buyers online. Just make sure you deal with a reputable cash home buying company.

What Is A Real Estate Investor? 

A real estate investor buys and renovates properties to sell or convert them to rentals. Real estate investors are also called flippers. They’re called as such because they purchase properties, sell them fast, and move on to the next one in a short period to profit quickly.

What Are The Differences Between The Two?

Below are some of the differentiating factors between selling your home to a cash home buyer and a real estate investor. 

1. Buying Process

Traditionally, you need to connect with a listing agent to get your house listed and sold. Selling a property that way can take time, especially if you decide to do the listing by yourself. And the process only starts when a prospect shows a willingness to buy your property.

If you’re looking for a quicker buying process than the traditional way, you can deal with either a cash home buyer or a real estate investor instead. The question now is which one to pick.

Cash Home Buyers: Whether you’re facing or avoiding job loss, bankruptcy, foreclosure, inherited property, probate, or bad tenants, cash buyers can help. They can help you sell your property fast in easy steps, such as what Ocean City Development and other cash home buyers offer.
Real Estate Investors: Some real estate investors can also buy properties fast while some may take time, especially if they are private or one-time buyers. They prefer to close a deal fast. However, they might be restricted by different factors such as financing, inspection demands, and the condition of the property.

2. Repairs And Renovations

Making repairs and renovations or home improvement doesn’t necessarily mean you can significantly increase the value of your home. However, it’s a great way to maintain the market value of your property. In this aspect, both cash home buyers and real estate investors may accept your property as-is.

Cash Home Buyers: They won’t require you to do any type of repair because they can buy your property as it is or in its existing condition.
Real Estate Investors: Some flippers buy houses as they are, but others may still look at the extent of repairs needed before closing a deal. 

3. Financing

Buying properties is a major decision. One crucial factor people consider is their financing options. So, how do cash buyers and real estate investors fund their property purchases? 

Cash Home Buyers: They have enough money to pay for a house or any property without taking out a loan or securing a mortgage. If you sell your property to a cash buyer, you can demand cash for a stress-free transaction. Hence, it pays off to sell your property to a cash buyer if you don’t want to deal with financing issues.
Real Estate Investors: They can also pay cash but some real estate investors secure a mortgage or bank loan to pay for properties they’re interested in purchasing. Some real estate investors also seek financing from mortgage note investors and lending companies.

4. Closing The Deal

Selling your house isn’t easy as it may seem if you’re dealing with the wrong buyer. The closing stage is the most awaited time for home sellers. You don’t want to deal with a buyer who will suddenly withdraw from the transaction at the last minute. Here’s how cash buyers and real estate investors deal with this stage: 

• Cash Home Buyers: As soon as they agreed to buy the property at the price you’ve both discussed, they will never withdraw from the sale. Just make sure that all the paperwork and legalities are complete and resolved. 
• Real Estate Investors: They’re also unlikely to withdraw from the sale. However, there’s a higher chance of the deal falling through with them compared to deals with cash home buyers. For instance, real estate investors may run problems with their financing of real estate investments.

In Conclusion 

Most cash buyers have a vast network of connections of real estate investors or flippers. That’s why they make money by buying and selling properties as quickly as possible. 

Have you made up your mind as to who should you sell your property to? You can sell your house to a real estate investor who might offer you a higher price for your home. However, make sure to anticipate a longer buying process with the possibility of demanding inspection and repairs. However, if you’re in a hurry to get cash for your home, you can sell it to a cash buyer without conditions.

Rate this item
(0 votes)

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.