Pros and Cons of Selling Your Massachusetts Home to a Real Estate Investor


What to Know About Real Estate Investors Buying Homes in Massachusetts

Author Bill Gassett owns Maximum Real Estate Exposure.

There is so much to consider when selling your Massachusetts home. Sometimes I get asked questions from potential sellers about the signs they have seen locally about investors willing to buy their home.

Many of these offers found on telephone pools sound intriguing. There must be some catch, right? Well, of course, there is a catch. Life and decisions such as selling a house are rarely as profitable as they seem.

There are many well know real estate investment companies out there that are certainly legit home buyers. One of the most prominent is "We Buy Ugly Houses."

If you have seen one of their signs or have gotten a mailer from them, you are not alone. They are the largest real estate investor in the U.S. You can read our complete We Buy Ugly Houses review if you're considering using them.

Before deciding as significant as selling your house to a real estate investor, you should know the advantages and disadvantages.

We will analyze the pros and cons of selling a house to an investor in Massachusetts.
We Buy Ugly Houses in MassachusettsPhoto byDeposit Photos

Pros of Selling to a Real Estate Investor

Selling to a real estate investor can provide some significant upsides, including an "as-is" sale with no contingencies, a fast closing, not paying a real estate commission, avoiding home showings and open houses, and quickly getting the equity out of your home.

Let's do a quick review of each of the pros.

You'll Be Selling Your House As Is

When you sell your house to an investor, you can sell it in its current condition without worrying about making any repairs or renovations. Investors buy houses “as-is,” which means you don’t have to spend time and money fixing up your home before selling it.

You'll Be Selling For Cash

One of the most significant worries for any home seller is the buyer getting their mortgage. You will be selling for cash, so there will be no concern about a buyer being unable to procure financing or the property not appraising for the sale price.

You'll Have a Very Fast Closing

Investors can close a deal quickly since they can access cash or financing, unlike traditional buyers who may need to secure a mortgage. This means you can sell your house and receive the proceeds within a few days or weeks.

If you want to sell your house quickly, an investor will deliver.

You Won't Pay a Real Estate Commission in Most Cases

When you sell to a traditional real estate investor, you don’t have to pay a real estate commission, which can save you thousands of dollars. Real estate agents typically charge a commission of 5-6% of the sale price, which can add up to a significant amount.

There are some newer types of investors, such as iBuyers, who do charge a commission. Remember this if you're approached by one of these companies, such as Open Door.

Overall your Massachusetts closing costs will be less.

There Will Be No Home Showings or Open Houses to Deal With

Selling your home traditionally involves numerous showings and open houses, which can be inconvenient and disruptive to your daily routine.

When you sell to an investor, you don’t have to worry about that. You can sell your home and move on to your next chapter.

You'll Get The Equity Out of Your Property Fast

Selling your house to an investor lets you quickly get the equity out of your home. This can be beneficial if you need the cash to pay off debts, handle unexpected expenses, or invest in a new property.

Many homeowners who sell to a real estate investor do so because they have encountered significant financial issues that must be addressed immediately.

Overall, selling your house to a real estate investor can be a convenient and hassle-free option, especially if you need to sell your home quickly or don’t want to deal with the complexities of a traditional sale.

Cons of Selling to a Real Estate Investor

While there are pros to an investor purchasing your Massachusetts home, there are cons. Some include selling for significantly less than the actual value, no opportunity for a bidding war, and the potential to be scammed.

Here is a summary of what you will face as disadvantages.

You Will Be Selling For Significantly Less Than Fair Market Value

While selling to a real estate investor may seem like a great option, there are some downsides.

One of the most significant concerns is the possibility of selling your home for way under market value. Investors look to make a profit, and they do so by buying low and selling high. They will offer you a price for your home well below its true market value, leaving you with less money than you could have received through a traditional sale.

You can expect the offer to be anywhere from 30-50% less than what you would sell for on the open market.

You Won't Have a Bidding War to Potentially Drive Up The Price

Another downside of selling to an investor is that you may not have the opportunity to receive multiple offers or participate in a bidding war.

With traditional sales, multiple buyers may be interested in your home, increasing the price and giving you more options. When you sell to an investor, you are limited to their offer, which may not be the highest or most competitive.

Over the last several years, due to the strong Massachusetts real estate market, most homes have received multiple offers. It hasn't been unusual for a seller to receive much more than their asking price.

There Are Many Real Estate Investor Scams

Finally, there is the potential to be scammed by an unscrupulous company. While many reputable real estate investors are out there, there are also those looking to take advantage of distressed homeowners.

These companies may promise a quick sale or an excellent price, only to back out at the last minute or make lowball offers. Researching and working with a reputable investor is important to avoid falling victim to a scam.

Final Thoughts on Selling to a Real Estate Investor

While selling to a real estate investor can be a convenient and quick option, it's vital to consider the potential downsides before deciding. Do your research, work with a reputable investor, and be prepared to potentially receive a lower offer than you would through a traditional sale.

Ensure you weigh all the pros and cons carefully before making a final decision. Always have a local real estate attorney review the contract you're signing before making a final commitment.

Did you enjoy this advice on the pros and cons of selling to a real estate investor in Massachusetts? See other real estate articles on NewsBreak for more timely tips and advice. Bill often writes about general real estate, mortgages, finance, moving, and home improvement.

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Bill Gassett is an avid writer for numerous real estate topics including finance, mortgages, moving, home improvement, and general real estate. His work has been featured on numerous prestigious real estate publications.

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