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Selling your home to a real estate investor has several advantages, as long as you know how to qualify the person you’re working with. If you’re in a hurry to sell, the scenario can be even more appealing. Working with an investor will put cash into your hand many times quicker than going the conventional route with a Realtor®.
One thing that should not be rushed, however, is your decision about which investor to work with. Just as investors qualify potential investment properties, sellers need to qualify investors. Here are 5 things to look for:
Is the Investor Pushy or Patient?
The most valuable attribute of a trustworthy real estate investor is patience. Patient investors are those who don’t stalk you or push for a quick decision before you feel ready. They understand the importance of sound judgment on what might be the largest investment in your lifetime. Trustworthy investors work toward a win-win situation between you and the buyer. Even if the buyer happens to be the investor, he or she will honor the relationship and never create a situation where someone loses.
Does The Investor Have a Plan?
Reputable investors know how to establish and achieve both short-term and long-term goals. They’ll ask questions to determine what your goals are and then create a plan to help you achieve them.
Knowledgeable investors will help you visualize the big picture, focus on the goals and work through minor setbacks if they present themselves. Real estate investing is serious business and a solid plan can keep you and the investor you choose to work with organized.
Does The Investor Know The Market?
Be sure the investor you work with knows the real estate market. Current trends, property values and market fluctuations are important in the industry of real estate investment. They help investors determine what might be facing you down the road so they can help you get what you’re looking for in the present.
Understanding the neighborhood and even what development plans the city or county have for the future can help when marketing your home to the right buyers. It can even increase your earnings on the back end of a deal.
Does The Investor Appear Ethical?
This is a tough one because you can never know for sure unless you know what to look for. Most successful real estate investors maintain high ethical standards. But there are signs that will give away a shyster. Pushiness, domination, and intimidation are three indications that you may want to look at other investors.
Real estate investing often thrives on referrals, and reputations are important. Effective real estate investors are fair and honest. Don’t be afraid to ask for references.
Does The Investor Seem Educated?
As with any business in any industry, continuing education is imperative. This is true today more than ever, as our world is changing quickly. Successful real estate investors must be able to adapt their business to changes and trends, and the only way they can do this is to maintain a focus on education. Above all be sure the person you work with is educated in the real estate industry.
They’re also aware of current laws. Investors who fall behind risk legal ramifications if laws are broken. Ignorance is no excuse and unfortunately the issue may extend beyond the investor to you.
Working with a real estate investor provides benefits you might not even be aware of. Explore this option before going the traditional route. Just because it’s familiar doesn’t mean it’s right for you. Qualify an investor by answering to the questions in this article.
Are you planning to sell your home? Contact us for a free consultation.