Thinking About Selling Your House in Detroit Michigan?
Well before you think about breaking out that “For Sale” sign it’s probably a good idea to get a little background knowledge about the 2 most common types of buyers in today’s market. There are investors and there are retail buyers. An investor is simply someone who buys properties with the intention to eventually receive a profit at some point either by renting out the property or by fixing it up and reselling it. Both of these investment strategies can be very risky if not executed correctly. A retail buyer is generally someone who is purchasing a home to live in as this will become their primary residence. This is highly important information to understand before selling your house!
Investor Pros And Cons
Like anything else in this world there’s pros and cons with everything. Investors have been flocking to Detroit over the last decade from all over the world! Buyers from all over the country and internationally have been actively buying houses and apartment buildings in Detroit. Some of the benefits with selling your house to an investor typically include an all cash sale and a speedy closing. Professional real estate investors usually have a set buying criteria and know exactly what they are looking for and what they can pay for it. Cash buyer investors almost always have an emotionless approach to buying an investment property. Either the numbers work or they don’t. For an investor it’s nothing more than a business. Many investors will buy your house in “as-is” condition and handle the repairs themselves. Keep in mind that investors are always looking to mitigate the risk factor involved with every purchase. Not every property will turn out to be a money maker! When selling your house to an investor in Detroit Michigan do not expect to get retail market value. Even if your home is in excellent condition, when selling to an investor you’re trading out some equity for ease of transaction.
Retail Buyer Pros And Cons
Selling your house to a retail buyer is a totally different experience altogether. The upside is that a retail buyer is buying a home and tends to get somewhat emotionally attached to the house. This type of buyer will also usually pay full market value or at least close to it. A homeowner buyer like this may or may not be a cash buyer. If they are getting traditional bank financing then there is always a risk of the deal falling apart. Another concern with retail buyers is that they will often be indecisive and might even ask you to make some repairs to the home before they agree to close.