Did you know that there are many advantages to selling your home directly to Red Bow Investments? Karl Krentzel touches on just 10 of these benefits below. If you want to take advantage of a commission free sale, call us today!
The Top Ten Reasons Why A FSBO Should Sell To An Investor. Right off the bat, there is something fundamentally wrong with the way that rolls off the tongue. A FSBO, should sell to an INVESTOR? I mean, that is sort of like the fox and the henhouse sort of thing isn’t it?
Yet in this case, we are going to use the For Sale By Owner’s needs and wants and find a way to get them to him or her right away! Here are the top Ten Reasons Why A For Sale By Owner should sell to an Investor!
- Fast Cash. When it comes to this, nothing beats good old dollar bills. At the core, a fast cash sale means that it is an EASY Transaction. When a For Sale By Owner (FSBO) needs to sell quickly (often because of a job transfer, promotion, death, divorce, etc) then sometimes, it makes sense to take a smaller amount on their existing home to ensure a clean, safe orderly transfer to the next home.
- Guaranteed Sale Program. For some agents, Realtors® and Realtors® who invest, being an investor gives you the added benefit of offering a “guaranteed sale” to your clients. Carefully worded, your offer can sometimes mean the difference between a completed sale, and a lost opportunity. Sometimes, this is accomplished via an Exclusive Agency agreement, (essentially allowing a pocket listing) or perhaps a full blown listing with your offer as a contingency if it does not sell. Either way, using or instituting this unique sales proposition can genuinely bring added benefit and value to your customer!
- As-Is. One of the hallmarks of the investor offer, is the fact that it is as-is. Now, as-is can mean many things to many people. For example, as is AFTER the inspection? As is after I’ve found things to be wrong that I didn’t know before? What? So be clear to the FSBO that your intent is to take it exactly the way it is for maximum effect. The less that they have to do, the fewer swings of a hammer, the less brush strokes of paint, all go a long way to make your homeowner happy!
- No Commissions- As an agent, or broker who is flipping property, then you have a great advantage here. The FSBO does not want to pay a commission, and neither do you! As an agent, you are generally in a perfect position to waive all or portions of your commission to make the deal happen. A For Sale By Owner selling to a Realtor®/Investor who is paying all their closing costs, and charging NO commissions? An outstanding value!
- No appraisals- There is nothing more frustrating that having a FSBO sell their home, open escrow, and then have it fail due to appraisal problems. The worse part is that it isn’t always value. With banks increasing the lending standards and the property conditions having to be in better and better condition to transfer, then it is harder to pass an appraisal without having some kind of trouble. With an Investor sale, then you have a guaranteed sale date, no repairs, a price, and no fear of having a disinterested third party from an area foreign to your own market judging your property.
- Less Paperwork- For many people, the thought of filling out a 9 page (or larger) listing agreement, all the dozens of disclosures, and the hassle involved with interviewing agents, or title officers to handle their transaction is simply not an option. Either their lifestyle (too busy), personality (don’t want to fool with it), or other factors can contribute to that prospect who knows what they want, and does not want to fool around with the paperwork to make it happen. For this customer, this enables you to meet this ease need quickly!
- No Showings-Other than the typical inspections an investor may have, there are no “showings” in the traditional sense. For those properties that have tenants, relatives, or caretakers in the property, this can free the homeowner to do more important things like watch grass grow. No homeowner relishes the thought of going out on a hot sunny afternoon to show a vacant house. Especially when they have a college thesis to write, or a job interview to go to. Sometimes juggling times to show a property to a prospective buyer can be challenging for you and I. Imagine what it must feel like for the average homeowner.
- No Frustrating Agent Calls- As your buyer, you are now under contract. As such, you are no longer a “Listing Prospect” for the regular residential resale Realtor®.
- No “No-Shows”- If there is anything more frustrating than a no show on an appointment to show your property, I can’t think of it. The way I look at it, if I get this upset about a no-show, then I am pretty sure a FSBO after about the 2nd time or 3rd time of being stood up, they quickly get the picture. They begin to pre-qualify on their own. Naturally, the questions they are asking are not scripted, nor sales related. Needless to say, unless the For Sale By Owner has a sales background, it is very awkward for the FSBO to call the No Show back without sounding desperate. However, by selling to you and I directly, they can avoid all of those problems!
- We Can Assume Payments- In many cases, even the most basic Realtor®/Investor or Agent/Wholesaler can find assume payments or perform a “subject-to” loan. This flexibility in payment can allow for a full price offer in many cases under a terms scenario.
Call us today!!