Selling a house directly to an investor comes with many misconceptions. People seem to have these ideas about what to expect based on stories they’ve heard or read about. But the fact of the matter is that most real estate investors are wonderful people, passionate about what they do. In our latest post, we will discuss four common myths people have about selling their homes directly to an investor.
Some people like sewing. Some people like selling products. Others love designing houses, and other people love buying and selling them. At kcmoHomeBuyer we love to help homeowners while restoring run-down properties. Real estate is our passion, as is helping homeowners in the Olathe area! Below are four myths we would like to clear up about selling your house to an investor in Olathe!
You Won’t Get A Good Price
When selling your house to an investor in Olathe, you might have the idea that you aren’t going to get a fair price for your home. While we can’t speak for all investment buyers in the area, we can let you know that when you sell your Olathe house to kcmoHomeBuyer, you will always receive a fair and honest price for your property, based on current market conditions.
We are very transparent about how we determine our offer prices. We’ll take into account recent area sales and the amount of work that needs to be done to make the property comparable to others on the market. We will happily make you an offer, leaving the ball in your court. There is never any obligation, we want to make sure that selling directly to us is the right decision for you!
Be sure to consider what that property is costing you – taxes, insurance, utilities, keeping the yard maintained. Then if you were to list it the traditional route you would probably want to make a few repairs and make it the most presentable. Then once it’s ready to get listed, you have Realtor Commissions and Broker Fees, plus the time spent with people walking through the home. Once you get it under contract, you then have to worry about inspections and repair requests as well as the buyer getting their loan.
So if you have time to spend on the traditional listing, great, that will be the best option. But when you don’t want to deal with all the time and issues with a traditional listing and want to know the property will be sold on a specific day, so you can move on with your life. Then consider an investor buyer who pays cash, quickly.
Investors Are Con Artists
This is far from the truth as well. Many “investment” buyers are families looking to invest in a rental, or people looking to flip properties because fixing up homes is what they love to do. Of course, there are some investors out there to watch out for, but that is true in any industry. If a real estate investor is interested in buying your home, hear them out. They might be able to offer you an excellent solution while saving you all of the costs of a middle man. Working with the right investor will ultimately save you time and money on the sale of your Olathe house! Ideally, you will be able to find a solution where everyone wins!
You’ll Be Hit With Hidden Fees And Costs
Again, we can’t speak for every real estate investor out there, but the majority operate openly and directly. This is how business gets done, and how everyone is able to save money on the deal. A fast, efficient, and straightforward process is the norm for most investors. When you work with kcmoHomeBuyer, you’ll never be blindsided with any additional costs or hoops to jump through.
Some of the costs of selling to consider:
Real Estate Commissions, with us there are never any commissions paid to a Realtor if we buy the property from you.
Broker Fees, some real estate companies out there not only charge a commission that goes to the agents to split with their brokers, but often there is an additional fee of about $300 that gets paid on top of the commission. Not all real estate agents charge this. When you sell to kcmoHomeBuyer, you never get this fee.
Title Company Fees, when a house is sold the transaction is handled by a third party that makes sure the title is clear, that collects and pays out any money involved and who makes sure all the paperwork gets done correctly. There is typically a fee for a title insurance policy that varies with the price of the home, a closing fee to do the paperwork, and then filing and other fees that are charged. Here at kcmoHomeBuyer we typically pay for our side of the closing and let the seller’s pay for their side of the closing come out of the proceeds of the sale price. If you would like to know what these costs might be, we can get with the title company to get you a fairly accurate estimate.
Note that the companies that say they pay these cost, just lower the price they offer to offset the fees.
Prorations: There are several fees that get prorated at time of closing so you pay for these items while you own the house and we pay for them while we own the house. But because they are charged and paid only once a year, they get prorated at closing. These are most often Real Estate Taxes and Home Owner Association Dues. If the home is a rental property, Rent is prorated as well.
Liens: There are other items that a seller is always responsible for including any mortgage liens, judgment liens, utility liens, and unpaid real estate taxes from past years. Sometimes these liens have been paid, but not released and we can work with you and the title company to find a way to get these cleared up so we can buy the house.
Our goal is to ensure you are incredibly happy with your selling decision, hitting you with hidden fees is the last thing we would ever do!
The Closing Will Take Longer Than Promised
When you work with an investment buyer such as kcmoHomeBuyer, a closing date is never promised until the offer has been accepted. Once we have a fully executed contract, we will be able to run the title right away and close on the property as quickly as possible. Of course, if issues like back taxes or liens need to be resolved, we will do what needs to be done in order to move on with the closing as planned. You will never have to wait while we find a buyer for your home. We are not assigning contracts, we are direct buyers with the ability to close on your property right away.
At the end of the day, working with an investor might be the best way for you to reach your goals. Investors will know how to work with the title company to get things handled quickly. The entire selling process can be completed in just a few days as opposed to the traditional process of hiring an agent, listing on the MLS, waiting for a buyer, and going through the escrow process. Avoiding the escrow process will save you time and money! The escrow process allows time for buyers to complete inspections and appraisals, two things that typically aren’t required with a sale to a Olathe real estate investor, at least when you are working with kcmoHomeBuyer, we buy as-is!