House flipping is a real estate strategy that has gained a lot of attention in recent years. For real estate investors, contractors and/or those who are relatively handy, the potential to make a profit by purchasing a cheap property and contributing a little sweat equity is exciting. But while the potential benefits of flipping a home for buyers are pretty clear, what is rarely discussed are the benefits of selling your home to a flipper.
In this post, we’ll examine those benefits, including flexible payment options and less hassle.
Before delving into the “pros” and potential benefits of working with a flipper, it’s important to first understand the primary argument against selling to someone who intends to improve a home and sell it.
You likely won’t have to search far to find someone who will advise you against selling your home to a flipper. Why? Because the flipper’s sole objective is to make money. Naturally, this means minimizing cost. So, he or she will work to purchase the home at the lowest possible price, which will likely be below market value. This is not to say that you should write off a flipper, but it is important to understand his or her motivations before entering into real estate negotiations. If you sell your home to Ryan’s Buying, we will simplify selling your home and give you fair market value for your property.
The top 5 benefits
An option for “hard to sell” properties
Naturally, not every home is easy to sell, and not every seller is motivated to sell solely by profit. For some homeowners, the ability to sell their home quickly and easily holds far more value than any additional revenue he or she could have generated by selling to another buyer. For example, homes that have been damaged by natural disasters, damaged by fire, or inhabited by a hoarder, foreclosures and properties inherited following the death of a loved one may all be good candidates for a sale involving a flipper. In these instances, a guaranteed sale is often a very attractive feature of the deal. If you choose Ryan’s Buying to buy your home, you will earn more money on the property and we will work with you on your closing date.
Flexibility and options for payment
Real estate investors are often capable of offering payment options and arrangements that are not typical among other buyers. For example, it is not uncommon for investors looking to quickly buy homes to pay cash for the property. Other payment arrangements may include certified funds, scheduled cash payments, and assumption of your existing mortgage.
The ability to sell “as is”
House flippers are not buying a home that they will one day inhabit – they intend to make improvements and sell. While the average prospective buyer looking for their next home may submit a list of costly repairs, flippers are generally prepared to buy the home “as is” and are ready to renovate and make repairs before putting the house back on the market.
If repairs, enhancements and staging are cost-prohibitive, then selling to an investor or flipper may be an option worth considering. Keep in mind that repairing your home to sell can take up to 9 months for those improvements to be made using a contractor. If you need to sell fast, call Ryan’s Buying to give you a free assessment of your home value.
As flippers are focused on profit, and time is money, closing the home can be a much quicker and more efficient process when selling to a flipper. In fact, some investors can close in a matter of days as the sale is not contingent on factors such approved financing or home inspections – steps that are routine in traditional transactions and often add time to the process. After all, the faster a flipper can close on a home, the faster they can turn a profit on the investment.
Flexibility on your move-out date
One of the most difficult and logistically challenging parts of selling a home is often the transition between the home you’re selling and your new residence. While most buyers are just as eager to get into your home as you are to get out of it, investors and flippers have no personal stake in the property (beyond their investment in it). While it is still true that time is money and a flipper will likely want to begin renovations sooner rather than later, a flipper is typically much more flexible and willing to agree to a rent-back or other arrangement allowing you some flexibility in transitioning between your current home and new living situation.
The bottom line
Working with an investor or flipper will not be ideal for every situation. But for those who value flexibility, speed and efficiency over ensuring a maximum return on investment, working with a flipper may prove to be a valuable option. Consider the benefits above as you prepare to sell your home to determine if working with a flipper is right for you. Working with Ryan’s Buying will allow you to sell your home without any hassles; don’t call an agent call your buyer!