Selling Your Home As Investment Property

Most homeowners sell their houses to traditional buyers who plan to make the property their home. But investors also buy homes, and sometimes it may be advantageous to sell to one. What are the pros and cons of selling your home as investment property?

Advantages to selling to an investor

You may have purchased your home as a place to live, but investors buy residential investment property for a variety of other reasons. Some want to own a house they can rent out, while others may want to update a home and sell it for a premium. Or a buyer might purchase investment property they can get at a low price with plans to resell at a higher price to another investor.

One of the biggest advantages of selling to an investor is the speed at which the transaction can be completed. A buyer looking for a personal home likely needs a mortgage, which requires an appraisal, an inspection, mortgage underwriting and the like. All of that takes time. The buyer looking for investment property usually pays cash and is willing to buy a home “as is.” The investment buyer therefore can close more quickly, which is a benefit to sellers facing job relocation, divorce, illness or foreclosure. This speed and simplicity can also make selling to an investor appealing to those who’ve inherited a home or who live in a different…