Are you looking to sell a house in Chicago, the [market_zipcode} zipcode, or anywhere in IL? Then this blog post will answer the question, “Would an investor buy my house in Chicago for close to asking price?” Keep reading to find out the answer…
When it comes to selling your house, you have a couple of options:
- You can sell it on the market by stating your asking price and then working with an agent to try and find a buyer (or trying to find a buyer yourself).
- You can skip the “sell-on-the-market” process and just work with a buyer directly (like what we do here at Blue Ladder Development) who can offer you a price for your house.
If you’re wondering, “Would an investor buy my house in Chicago for close to asking price?” then here’s what you need to know:
Why Investors Invest
A real estate investor evaluates a property from a business point of view. Investors purchase real estate as their livelihood which of course means that they operate their business to make a profit in order to pay their employees and put food on the table for their families.
Before you set your asking price, think about what benefit an investor provides…
Understanding The Asking Price
Your asking price is a starting point for the negotiation. Even if you sell to someone on the market (through the help of a real estate agent), your asking price will be the starting point and the buyer will usually try to negotiate a lower price.
But here’s what most people don’t realize: the asking price has other factors built in… for example, it assumes that you have fixed up and cleaned up your property so it’s in pristine shape and ready for buyers. And, don’t forget that you have to pay bills, insurance, and taxes on your property the whole time an agent tries to find a buyer (which can take months). And then you’ll have to pay the agent a commission, which might be thousands of dollars.
So your asking price has all of these things “built into it”.
An Investor Skips All This
When you work with an investor, you actually skip all of this. You don’t have to fix up or clean up your house so you can save thousands of dollars there. And, you don’t have to pay bills, taxes, and insurance for months while you wait for a buyer to be found, so you save thousands of dollars there. And, you don’t have to pay a commission because no agent was used, so you save thousands of dollars there.
Add it all up: you save thousands of dollars by selling TO an investor instead of selling THROUGH an agent. The reason is because by selling to an investor you are able to sell directly to an actual buyer without paying the excessive fees involved in a typical transaction.
Selling to an investor allows you to sell faster and avoid all those expenses. It is important to understand that when you get an offer from an investor you are getting a true NET offer. Sometimes sellers may wonder why the investor offer is lower than their asking price and the reason is often because they aren’t considering all of the fees they will have to pay after selling the property. In a traditional transaction what you sell the property for and what you actually walk away from the closing table with are very different numbers. Where as with an investor offer what you walk away from the closing table with will be very close if not exactly the same as the offer you received.