Cash For House

If you have a house that has been vacant for awhile, there’s a good chance you may have been contacted a real estate investor offering some sort of sell house for cash deal. You may be wondering if the investor is for real or what the catch is. Here is what you need to know about cash for house offers before you make a decision.

First of all, you need to know that the real estate investor is in this to make money. This is not a bad thing; it’s just a fact. The cash offer you get from an investor is going to be well below market value. No investor is going to pay cash for a house and pay what it’s worth. If they did that, they would not be smart investors.

The cash for house offer you receive will be low enough to allow the real estate investor to make the desired amount of profit. Only the investor knows for sure how much this is. He won’t volunteer this information and indeed, he shouldn’t, but you need to be aware of it. Most investors have a minimum profit amount in mind before they make an offer on a house. This number is often $20,000-30,000. However, for more expensive homes the amount will be much, much higher because the risk is higher. A real estate investor is much more likely to end up holding on to a $600,000 house for quite some time before it sells than a $100,000 house. While he is waiting for a sale, his money is tied up in the house.

The reason you need to be aware of the real estate investor’s profit in a sell house cash deal is that it could be your profit. It’s your house. If you are willing to do the work that the investor will do to fix your house up and get it ready for sale, and if you have the liberty of time to wait for the house to sell on the market even if it takes awhile, then you may be better off making the necessary repairs and listing the house with a real estate agent. However, if you are in a hurry and need cash fast or your house is in disrepair and you are unable to put in the time or money to fix it up before selling, a cash for house offer from a real estate investor may be just what you need.