Stock markets are
moving sideways and interest rates are stuck in the low single digits.
Investors who are looking for better returns are increasingly turning to
residential and commercial real estate. If you are interested in selling your
house in Austin and its surrounding territories but don't want to deal with the
typical stresses of listing, staging and showing the home, you can turn to the
alternative market of investors who buy homes.
Investors who buy
residential real estate typically fall into one of three categories:
wholesalers, fix-and-flippers, and buy-and-hold purchasers. The selling price
of your home will vary as a function of the category of investor who purchases
it, but in all cases of sales to investors who buy homes, you will receive a
purchase price that is close to the net proceeds that you would receive if you
listed that home with a traditional real estate agent.
A wholesaler will
buy your house for cash on an as-is basis and will typically close the purchase
in less than thirty days after you accept the wholesaler's offer. Wholesalers
will rarely own the home for more than a few days. Rather than taking
possession of the home, a wholesaler will instead seek to resell it immediately
to another investor that is on the wholesaler's buyer list. Wholesalers are not
real estate agents and they do not take commissions on sales. They do seek to
buy homes at below-market rates and to resell homes at a higher price to one of
their buyers, profiting on whatever price spreads they can negotiate between
the initial purchase and subsequent sale.
Fix-and-flip
investors will purchase homes with an intention to make modifications and
updates before reselling the updated or improved home at a higher price. These
investors often purchase homes from bank foreclosure inventories, through short
sales, and from other distressed or off-market sources. Heirs that have
taken ownership of a home in an estate closure as, for example, where an
elderly parent passes away and wills a home to his or her children, will find
eager purchasers among fix-and-flip investors. Homes that are passed to heirs
through estates are often dated but are rarely dilapidated, making them ideal
products for these investors.
Buy-and-hold
investors will look for homes that have good rental potential or that may be in
a market that is poised for strong future appreciation. These investors will
often buy and hold homes using funds from self-directed retirement accounts,
and will look for homes that generate solid monthly revenues from rental
streams or that offer potential for longer-term value.
With all categories
of investors, sellers will escape the trouble of staging the home for sale and
updating the home's systems or appliances. The seller's net proceeds from the
sale will not be reduced by any real estate commissions, and investor purchase
offers will not be contingent on procuring financing. Investors typically use
private financing sources and avoid traditional bank or mortgage company
financing. In other respects, a home sale to an investor will proceed along
traditional pathways, with title companies, surveys, and closing escrows.
We Buy Your Austin
Home is an investor-led company that purchases homes in and around Austin
within all three investment categories. Please visit our website for more
information on how we can work with you to purchase your home without involving
real estate agents, MLS listings, and staging or repair requirements.
