What is an Investor Sale?
A property seller should always try and maximize the net proceeds from a sale.
However, sometimes the condition of a house, or the need for fast cash, makes an investor sale an option. In this situation, the buyer will not occupy the residence. Rather, they are buying the home with the intent of selling it to make a profit.
Examples of investor sales that benefit the seller:
- A property needs major repairs or updates. The cost of these improvements will not boost the final sales price above the cost of the proposed renovations. An investor sale is a viable option.
- Multiple family members have inherited a distressed property from a relative. They do not have the resources, nor the time, to improve the property in a fair and equitable manner. An investor sale could simplify distribution of the inheritance for the heirs.
- A seller needs net proceeds from a home sale to act on another real estate opportunity. There is not time to execute a traditional real estate sale. An investor sale may be a solution.
- A seller is undergoing foreclosure. A careful study of the situation, and the use of an investor, may allow the seller to obtain cash that otherwise was unavailable.
- In estate planning, the elderly may save their home as the last source of cash for assisted living expenses. After exhausting all other assets, they may require the cash from their home. An investor sale could quickly liquidate that asset.