Are you looking to sell a house in Connecticut, the [market_zipcode} zipcode, or anywhere in Connecticut? Then this blog post will answer the question, “Would an investor buy my house in Connecticut 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 Fair Home Offers CT, LLC) who can offer you a price for your house.
If you’re wondering, “Would an investor buy my house in Connecticut 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 actually skip all of this. You don’t have to fix up or clean up your house so you can save thousands of dollars there. And, you don’t have to pay bills, taxes, and insurance for months while you wait for a buyer to be found, so you save thousands of dollars there. And, you don’t have to pay a commission because no agent was used, so you save thousands of dollars there.
Add it all up: you save thousands of dollars by selling TO an investor instead of selling THROUGH an agent.
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 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.
To tackle the question directly, however, I would say YES, there are investors who can pay close to asking price. In the real estate investment world, there are different types of investing. If your house needs work and someone is going to buy your house in order to fix it up and resell it, then no, that type of investor can’t pay close to your asking price. There are investors who buy properties to hold them as rental properties. Those are the types of investors who may be able to give you close to your asking price, especially if your house is in a desirable area where they can rent it out easily or even turn it into a short term rental and rent it per room to individuals as opposed to renting out the entire house to one person/family. The other way you can get close to your asking price is if you have a good amount of equity in your house and you don’t need the cash from the sale up front. You would be able to structure an owner financing situation with an investor buyer who would make monthly payments to you rather than coming up with all of the money at once. And in this type of scenario you would probably end up making more than your asking price in the long run because you would also be charging interest on that equity!