Key Disadvantage Of Selling To An Investor

If you’re thinking about selling your house, you might be weighing your options about how to sell. Keep reading to learn the key disadvantage of selling to an investor over a traditional buyer.

The 62nd Street House with the giant retaining wall problem.

Disadvantage Of Selling To An Investor Over A Traditional Buyer, no license or training required . . . .

You have a lot of options when it comes to selling. You might sell through an agent to a traditional buyer, or you might consider selling your house directly to a real estate investor.

There are advantages and disadvantages to both. But if you’re thinking of selling to an investor, here’s the one key disadvantage of selling to an investor over a traditional buyer in [market_city] that you should be aware of:

When you sell through an agent, the agent usually has to pass an exam and obtain a license from the state to be an agent. They have to usually pay money to different organizations (such as their brokerage, the Kansas City Regional Association of Realtors, and the National Association of Realtors).

On the other hand, anyone can be an investor without any formal training or certifications. Someone can just say they’re an investor and they’re an investor… without any additional training. This can be a disadvantage to house sellers like you who might be looking for help in your situation but you end up working with an investor who has no experience.

Fortunately, there ARE investors out there who have the skills, knowledge, and experience to help you in your situation, no matter how complicated it is.

Here’s What to Watch Out For when Working with an Investor

Website – About Page:  Start by looking for the investor’s website. Do they have one? What information is on there? Are they helpful? Do they give you lots of information? Do they have testimonials or case studies that demonstrate their experience?  One of the biggest red flags I know is a website that has no mention of who you are working with.  It’s just a generic website that the investor purchased, turned on, and didn’t take any time to personalize.

Website – Blog Page:  Another red flag when looking at the website is the blog or articles page.  Have they posted anything in the past month or even in the past year?  Do they have any posts that show they have any knowledge about buying and selling?

Phone – Full Voice Mail:  The next thing you want to watch out for is their phone calls.  Nothing says inexperienced more than a call going to a full voice mailbox.  Yes, we try to answer all of our calls, but sometimes we are out and about and can’t get to the phone.  However, our mailbox always has room, all calls are forwarded to us via text and email and we return calls as soon as possible and appropriate.

Phone – Return Calls:  Next, if you are lucky to talk to them without leaving a message, that is great.  However, if you do leave a message, do they call you back promptly?  A good rule of thumb is to get a call back within an hour Monday through Friday during business hours.  If you call during the week after hours, expect a call the next morning.  If you call on the weekend, expect some kind of return message within an hour or two and a call back on Monday morning at the latest.  We do try on weekends to get back to you in some way within an hour, although on a Holiday weekend because we are a small family team, we are all sometimes out of town and unavailable till Monday.

Knowledge:  As you talk to the Investor buyer on the phone do they sound like they know what they are doing?  Are they respectful of your time?  Do they ask good questions and provide good answers to your questions?  Are they willing to offer you options?  When you give us a call, we will ask you questions about your property and your situation.  We will be working to figure out the best solution for you and your situation, and if that solution is working with us, we will then take it to the next step – visiting your house.

House Visit:  If you have an investor who will make you an all-cash offer, without seeing your house, RUN . . . RUN REAL FAST!  Because once they get it under contract, you are stuck, you can’t sell to anyone else and your investor buyer who buys sight unseen is either paying you way too little for your home or will back out of the contract when they can’t find the money or another buyer to sell it to.  We may talk numbers with you over the phone, but we never make our final written offer without first coming out to see your house to make sure we are in the right price range.

Then, call their office and talk to them. Are they respectful of your time? Do they sound like they know what they’re talking about? Are they helpful? Ask them about their process and how they work with you. They shouldn’t be pushy and should offer no-obligation offers to you.

You can learn a lot about an investor with just these two steps. While anyone can be an investor, many great real estate investors out there have your best interests at heart and will work hard to help you.

Consider our company, for example, you are welcome to click around our site and learn more about us. We are an open book and always happy to help. Feel free to get in touch with us to ask our team questions before you decide.

When it comes down to selling your house through an agent or to an investor, selling to an investor is faster and easier… as long as you find the right investor! We’re happy to talk to you before you make any decision, just reach out to us about Selling Your House! We want to get to know you and earn the right to buy your house.


Leave a Comment