How do I find an investor for my home?
If you’ve asked the question how much will an investor pay for my house, then you’re obviously considering your options. Investors who buy houses offer an alternative to selling your house through an estate agent. There are pros and cons of both. But one of the significant benefits of selling to an investor is the sale will be quick and hassle free. So let’s take a look at how much you might get paid by an investor for your home.
How much will an investor pay for my house in 15 seconds…
Selling a house can be stressful and can take months or much longer to sell if sold in the conventional way. Whereas if you sell to an investor, the process is very quick and you’ll sell your house chain free and estate agent commission free. But there’s a catch, as often times you need to be prepared to accept a below market offer. This is the price you’ll pay for the convenience of a quick sale. But how much will an investor pay for your house you may ask? If you want to sell your house fast and for cash; expect to receive between 25% to 30% below its market value. But there are alternative methods to sell your house to an investor where you could achieve market value.
How much will an investor pay for my house?
Investors purchase property to make money, whereas people who buy home to live in don’t. Investors in property make money in a number of ways. Let’s take a look at how this works:
- Property or house flipping: Investors buy house to renovate or improve and flip (or sell to someone else) for a profit.
- Rent the property to tenants: Investors will also buy houses to rent out to tenants to make a monthly cash flow.
- Change of use and planning permission: Investors often times will take an individual property and changes its use or obtain planing permission to create value. For example, changing a single dwelling house into flats.
What a company that buys property will be able to do with your property will depend on your property’s location and the type of property. Not all investment strategies work for every house or property. With the above in mind and because an investor is in it to make a profit, you are often likely to be paid less than market value for your house. But this doesn’t necessarily have to be the case. Please read on to find out how you may still be able to achieve full market value for your house. This is even when selling it to an investor.
The Bank of England have researched that buy to let investors tend to pay on average 0.9% to 1.1% less than other buyers for equivalent properties. When I read this I was surprised, as this is quite low as a percentage. If we buy a house for cash we would offer somewhere between 25% to 30% below the current market value. This may seem a high percentage drop to take. But when you consider the benefits to you of selling to an investor, this may be a good price to pay. But see below how this doesn’t have to be what you accept as an offer on your house.
What to expect when selling to property investors
When you sell property to an investor, you’ll achieve the following benefits:
- No estate agency fees.
- Avoid the need to have loads of potential buyers traipsing through your house.
- A quick sale, which can be achieved in 4-6 weeks from accepting the offer to completing the deal with cash in your bank.
- No chains to contend with.
- If you have renovations or repairs to carry out, but you don’t have the money to do so, an investor is set up to deal with this.
- Your house may have structural or other problems that might prevent a normal home buyer from buying your house. But this is unlikely to be a problem for an investor.
- Piece of mind knowing that your house sale will complete – there’s no messing about.
- You’ll have certainty for planning ahead.
Is selling your house to an investor a good idea?
Selling your house to an investor is a good idea if you’re looking to sell your property quickly. If however you want to sell your house for a a decent price, you may need to accept a bit of creativity. But if you work with us, any conveyancing of the property transaction will be done using a solicitor. We also insist that you are separately legally represented too.
When you sell to an investor it’s important to recognise that the transaction is a business deal. The investor is not buying your house to live in. But because of this, the deal will be to your advantage. This is because once the deal is struck, an investor will proceed to complete the transaction quickly. Whereas if you’re dealing with a regular home-buyer, this is an emotional purchase, which can go wrong.
With an investor you may have to focus your efforts on showing them how your house has investment potential. The more you can demonstrate that your property has a good market value and a high resale potential, the more likely they will invest. This will help the investor to calculate how much money they can make from your property. This compares to having to explaining to home buyers how nice your home is to live in.
How you may achieve market value for your house when you sell to a property investor
I mentioned earlier that if we bought your house for cash we’d offer somewhere around 25% to 30% below market value. However, there is an alternative option to this approach. But it does mean you have to be open to working slightly differently to what you’re used to. But it’s important to point out that it is in a way that is totally legal and above board. We use specialist solicitors to conveyance the deal and insist that you are separately legally represented, also by equally specialist solicitors.
At Bowfin we work on the basis of a win-win for you and for us. This means for any deal to work, you have to be comfortable with the offer on the table (i.e. a win for you) and we must also be happy with the deal (i.e. a win for us). Whilst we are happy to buy your house for cash and offer you a below market value offer, but if you would like to find out about an alternative approach to possible achieve market value, please contact us for more information on our contact us page.
How do I find an investor for my home?
The are a number of ways to find an investor to buy your house. These include the following:
- Contact a local estate agent: Estate agents will always having investors on their books who are looking for properties to invest in.
- Search on the internet: A Google search or another search engine. I suggest you search using the phrase “sell my house quickly for a good price“. This keyword phrase will bring up plenty of results for you to choose from. But choose wisely, as not all companies that buy houses are ethical.
- Speak with your solicitor, financial adviser or mortgage broker: Often times solicitors or financial advisers know property investors. Mortgage brokers will know many property investors as they work with them to arrange finance for their property investing.
- You’ve already found a property investor: Bowfin are investors in property. We buy houses and property portfolios from people looking to sell.
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