Finding Investors Who Buy Homes

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.