Tight Economy Offers Home Sellers Way Out!

| February 11, 2012 | 0 Comments More
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. Many home sellers are turning to real estate investors to buy their properties. In a tough market, the only buyers with cash or lending eligibility are real estate investors. They have been waiting for the prices to hit rock bottom before they buy. Now that many sellers are in short sale or have an auction date approaching, the real estate investors are coming out of the woodwork to locate those bargains.

Sellers should first research through their local banks, lenders, mortgage brokers and professional real estate contacts, who the local real estate investors are in their immediate region. Your local title company or contractor’s will have ready knowledge of the local investors, who may be poised to bail out a seller for the right price. If you live in a small town, check with the national title company in the nearest big city for a list of potential investor leads. In a big city, real estate investor clubs are plentiful and may welcome sellers to post their properties for sale on their websites for free.

There are multiple benefits selling to an investor. Many home sellers may have listed through the local Multiple Listing Service and have had several offers. But they were disappointed, when the escrows fell apart, because although the buyers were qualified, they were faced with extraordinary lending requirements. These scenarios have turned a home purchase into a battle instead of an exciting beginning. In this bad economy, many escrows which would have closed in a regular market are not making it past the first costly buyer inspections, because the banks are putting up roadblocks.

Home sellers who can price their property competitively will benefit from a quicker sale to a real estate investor, trust or club member. A real estate investor will most likely buy with cash avoiding appraisal concerns or lender repair requirements. A cash escrow can close within 10 days or less and save the buyer from wading through lengthy financing contingencies like providing pay stubs or proof of rental income. A quick close can save the seller at the last minute from bad credit dings due to more late payments or foreclosure.

An added benefit is many real estate investors will pay the sellers closing costs, for example, the home owners title policy, a seller requirement of all closings. If the seller is upside down, this could relieve the seller of having to come to the table with cash they don’t have. If the seller is able to price their property below market values by 10% or more, the lucky seller could even walk away with the profit they hoped for all along. Especially since they are already saving on real estate fees, required inspection costs like septic certifications and their closing costs.

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Category: Blog, Home Sellers

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