In our article, ‘How Do I Sell My Own Home?’ we talk about different ways of selling your house, including a self-directed, DIY house sale. But you’ll enter into a pretty steep learning curve selling a house on your own and most people do not want to take the risk as a first-timer endeavour. Selling a home to a private home buyer (also known as real estate investor) is perfect if you don’t have the desire or time to follow the necessary steps to sell your home through a real estate agent or on your own.
Practical tips to prepare yourself to sell to a real estate investor (private home buyer):
Every industry is susceptible to deception, so do your research.
A commerce-based society sometimes attracts duplicitous people with a lack of conscience. Most people are trustworthy, but be concerned about anyone promising huge financial results or delivering stories designed to scare you into immediate action. Never sign during your first meeting, no matter the incentives promised. This advice is relevant for any agreement you enter into, whether with an HVAC company, window and door company, or a private home buyer. Read more about DCI Properties.
By looking at someone’s business background, you’ll find the right real estate investor. Read our DCI Properties reviews here.
Look up a private home buyer’s online reviews; (by the way, most artificial and purchased reviews are for products of large corporations) but always be judicious when reading reviews. Discover how long they’ve been in business, do they seem professional and organized in their business procedures, or do they cancel appointments? Ask for three client referrals that you can contact.
Educate yourself about the housing market, both in your neighbourhood and on a broader scale.
Understanding the various elements of a subject makes for a more efficient meeting. Your meeting will be smoother and more productive if you have put in some research on your own. Imagine if you were in the market for a new roof, you would feel more confident if you had a basis of knowledge from which you can ask solution-directed questions.
Ensure the real estate investor is Canadian business-based so that foreign investor delays don’t occur.
The sale of your house could be delayed up to a few months if the house investor must work out the logistics of last-minute out-of-country tax consequences. Ask to see their business license.
There are many benefits of selling your house to a private home buyer (investor):
There will be no money uncertainty like preapproved bank funding. Read our ‘How it Works 4-Step Process’ page.
Nothing is for sure with financial lending, and a sudden loan withdrawal does happen when selling to individual buyers. To feel more confident of your business transaction, you can always ask the private home buyer (investor) for proof of funds. This might come in the form of a bank account statement or money market account statement that can show money or liquid assets.
A renovation-free transaction is a bonus for many people.
Selling your house to a private home buyer means no renovations, no open house preparation, or fear of wondering how long the process will take.
Your house will sell earlier, and you’ll have more control over the timing of the sale.
Selling to a private home buyer gives you more freedom regarding the length of time you can stay. The average business transaction between you and your private home buyer is two weeks. Most private home buyers are purchasing with a cheque, making for a quick turnaround.
You can sell your home to a real estate investor and rent it back.
Feeling lighter financially and emotionally is a big draw for people selling their homes to private home buyers. You may be nearing your retirement or simply need access to more cash without taking out a loan. This is an excellent alternative for many people.