So, you recently inherited a house that needs a ton of work so you say to yourself. How do I sell my house fast? Tampa has a thriving real estate market right now and there are plenty of real estate investors to choose from for these types of properties and usually they will all give you a cash offer on your home. So, which one should you choose?
Choosing the right offer from real estate investor in Tampa can be tricky. Let’s start with the basics. Obviously, price is the most important factor when selling your home, but its not everything and the purchase price on the contract may not be the amount of money you get at closing.
The three most important factors,other than price, when choosing a buyer for your home are closing costs, inspection periods, and the ability of a buyer to close.
Closing costs when selling your home usually are about 1.5% - 2% of the purchase price. Keep in mind this figure is only if you’re are not using a Realtor, which will usually charge an additional 5-6% to sell your home, 2.5% - 3% for the listing broker and another 2.5% - 3% for the Buyers agent. It’s important when analyzing an offer’s bottom line or comparing multiple offers, you make sure you find our who’s paying the closing costs. For example, if the house sells without a Realtor for $100,000 then the closing costs can be around $2,000. This can be a huge mistake if you don’t take this into consideration when reviewing an offer.
The next factor to look at when choosing an offer to accept from a real estate investor is the inspection period and repair allowance. Most investors will write offers AS IS with no required repairs. This means you’re not responsible for fixing anything prior to the closing. However, its important to look at the inspection period to see how many days it is. The FAR-BAR Residential Real Estate Purchase Agreement defaults to a 15-day period, which is usually okay when dealing with a home buyer but is way too long when dealing with an investor. This means that for any reason during those 15 days the Investor can back out for any reason. Real estate investors look at properties everyday so you don’t need to give them 15 days to inspect the property. My recommendation is no more than a week. This way, with an AS IS contract they’ll be locked in within a week’s time frame. If your offer contains an amount that you’re responsible for repairs, then simply subtract that amount from the purchase price, because you will most likely be spending that money every time.
Lastly and most importantly, is the investor’s ability to close. Better put, even if they have the ability to close on your home, how LIKELY are they to do so. You see there are a large number of investors that will place your property under contract knowing that they will only close if they find a buyer for the property within a short period of time. These types of buyers tend to cancel contracts a lot and can be a huge waste of time. Here’s how to research the buyer for your home. Go to your local County Property Appraiser’s website and do a property search or a sales search for that company. That will show you if they currently own any homes and if they’ve purchased and sold any homes in the last year. You want to pick company that is doing business regularly.
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