What Happens When an Investor Buys Your House

Selling to a real estate investor is different from selling to a family with a mortgage. Investors buy houses to renovate and resell, or to rent out, and they usually pay cash. Here is what actually happens from the first call to closing day, so you know what to expect.

Step 1: The first conversation

You share the address, the condition of the house, why you are selling and when you would like to move. Be upfront about problems; the investor will find them anyway, and honesty gets you a firm offer faster.

Step 2: A quick walkthrough

Most investors want to see the house once, briefly, to estimate repairs. There is no staging, no open house and no need to clean. Some can make an offer from photos.

Step 3: The offer

The investor estimates what the house will be worth after repairs, subtracts the repair cost, their holding and selling costs, and their profit, and makes you an offer. It will be below full retail value; what you gain is speed, certainty and no repair bills or commissions. If you want to understand the math, see what ARV means in real estate.

Step 4: The contract and the title search

Once you sign, the investor opens the sale with a title company or closing attorney. They search the title for liens, unpaid taxes and anything else that must be cleared, and order a payoff from your lender.

Step 5: Closing

On the closing date you sign the deed and closing documents, the title company pays off your mortgage and any liens, and you receive the rest by wire or check. Because there is no lender on the buyer’s side, this can happen within days of signing. You can usually leave behind anything you don’t want.

What happens to the house afterwards

Investors usually renovate and resell the house, or fix it up and rent it out. Some contracts let the buyer assign the purchase to another investor; ask about this before you sign, and see selling to a real estate wholesaler.

Is selling to an investor right for you?

It makes the most sense when the house needs work, you are short on time, or you want to avoid showings and repairs. If the house is updated and you have months to spare, listing it may bring a higher price. Read renovating vs selling as-is.

Want to see what an investor would offer? Tell us about your house and a local cash buyer will make you a fair, no-obligation offer, usually within 24 hours. Get your free cash offer or call (727) 208-1229.