Are you looking to sell a house in Metro Detroit, the [market_zipcode} zipcode, or anywhere in MI? Then this blog post will answer the question, “Would an investor buy my house in Metro Detroit for close to asking price?” Keep reading to find out the answer…
When it comes to selling your house, you have a couple of options:
- You can sell it on the market by stating your asking price and then working with an agent to try and find a buyer (or trying to find a buyer yourself).
- You can skip the “sell-on-the-market” process and just work with a buyer directly (like what we do here at 3D Property Solutions) who can offer you a price for your house.
If you’re wondering, “Would an investor buy my house in Metro Detroit for close to asking price?” then here’s what you need to know:
Why Investors Invest
An investor invests in real estate because they hope to buy at a lower price and either sell at a higher price or rent out the property. Therefore, investors are motivated to find houses that are priced affordably for them to buy.
Before you set your asking price, think about what benefit an investor provides…
Understanding The Asking Price
Your asking price is a starting point for the negotiation. Even if you sell to someone on the market (through the help of a real estate agent), your asking price will be the starting point and the buyer will usually try to negotiate a lower price.
But here’s what most people don’t realize: the asking price has other factors built in… for example, it assumes that you have fixed up and cleaned up your property so it’s in pristine shape and ready for buyers. And, don’t forget that you have to pay bills, insurance, and taxes on your property the whole time an agent tries to find a buyer (which can take months). And then you’ll have to pay the agent a commission, which might be thousands of dollars.
So your asking price has all of these things “built into it”.
An Investor Skips All This
When you work with an investor, you can bypass many of the costs and hassles that typically come with selling a home through a real estate agent. Here are some concrete examples of how you can save money by choosing to sell directly to an investor:
- No Need for Repairs or Cleanup:
- Example: Imagine your home needs a new roof, some plumbing repairs, and a fresh coat of paint to attract buyers. If you were to sell through an agent, you might need to spend $15,000 to $20,000 on these repairs and updates to make the home market-ready.
- With an investor: You skip these costs entirely. Investors often buy homes “as-is,” meaning they don’t require any repairs or cleanup. This can save you those thousands of dollars right from the start.
- Avoid Ongoing Bills, Taxes, and Insurance:
- Example: Let’s say it takes six months to sell your home through an agent. During this time, you’re still responsible for property taxes, homeowner’s insurance, utility bills, and possibly mortgage payments. If these expenses add up to $1,500 per month, that’s $9,000 over six months.
- With an investor: Since investors typically close deals quickly, often within a few weeks, you avoid these ongoing expenses. This could save you that $9,000 or more in carrying costs.
- No Real Estate Agent Commissions:
- Example: Real estate agents usually charge a commission of around 5-6% of the sale price. For a home selling at $300,000, that commission could be $15,000 to $18,000.
- With an investor: There’s no agent involved, so you don’t pay any commission fees. This is pure savings, leaving more money in your pocket.
Add It All Up:
- Total Savings: If you combine the $20,000 in potential repair costs, $9,000 in carrying costs, and $15,000 in commission fees, you’re looking at a potential savings of $44,000 by selling directly to an investor. Even if the investor offers slightly less than a buyer on the open market, the money saved by avoiding these costs can make selling to an investor a much better financial decision overall.
Selling to an investor can provide a fast, hassle-free experience while saving you tens of thousands of dollars.
Summary
Selling to an investor allows you to sell faster and avoid all those expenses. That’s why an investor might not be able to buy a house near your asking your price. However, the discount you might provide them is money you wouldn’t see anyway while you wait months and “gamble” to sell your house on the open market.