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How To Avoid Selling Your Home To An Investor Or Ibuyer

How To Avoid Selling Your Home To An Investor Or Ibuyer

Many homeowners often prefer to sell their homes via the Multiple Listing Service (MLS), mainly with the help of a real estate agent. But this isn’t always possible, especially if your home is in an outdated condition.

For example, if you have less home equity and the property needs several significant repairs, it would be nearly impossible to make a profit and still pay for agent fees. So, what are the alternatives?

You could choose to sell the property to an investor or an instant buyer (ibuyer). This will allow you to sell fast, avoid unnecessary costs, and skip making expensive repairs.

Selling directly to a cash buyer mainly keeps you away from the stress associated with the complicated traditional home transaction process. Furthermore, it also lets you bypass unnerving issues like buyer financing problems, appraisal concerns, and inspection contingencies.

Although the process might seem like a dream come true, you should be aware that some disingenuous characters often pretend to be investors only to scam vulnerable home sellers. So, here is everything you need to know on how to avoid selling your home to an investor or ibuyer.


Who is an Investor or Ibuyer?

Cash sales contributed 23% of all home sales across the nation last year, and much of its growth is attributed to the rise of ibuyers and investors. With a growing entry margin, these entities are quickly snapping hundreds of homes from the market and flipping them simultaneously like machines.

Interestingly, they essentially differ and should not be confused to be synonymous.

An investor in real estate essentially refers to an individual or company willing to make a cash offer for a property and offer you a quick sale. Some of the most common home investors often include buy-and-hold investors, wholesale investors, and home flippers.

On the other hand, an ibuyer primarily refers to a company that uses tech to streamline and simplify home selling processes. They mostly use data and algorithms to predict property values and determine cash offers.


How Does an Investor or ibuyer Differ from a Typical Homebuyer?

Perhaps the main difference is what they intend to do with the property after buying it. In most cases, a typical homebuyer wants a permanent residence.

On the contrary, Investors, and ibuyers often see properties as business opportunities. Ideally, they are always looking for outdated homes, making renovations, flipping them for profit, or renting them out.

In other words, they are typically interested in buying your home for as low as possible and then selling it for as much as possible. So, what do you need to avoid when selling your house to an investor or ibuyer?

Avoid Paying Upfront Costs

Many legitimate cash buyers never ask for deposits or any upfront fee. But if one asks you to pay for a significant expense or a considerable check, consider it a red flag. It is a common hallmark for con artists pretending to be investors or ibuyers.

Avoid Dealing with Foreign Cash Buyers

Before deciding to work with a foreign investor or ibuyer, think twice. It often involves people unfamiliar with your local real estate market and complex international money transfers that can stall transactions. It’s also cumbersome to hold someone you’ve never met accountable if something goes wrong. It’s increasingly hard to verify their authenticity, so avoid them to be safe.

Be Wary of Slow Sale

The prime advantage of selling a house to an investor or ibuyer is the ability to get paid in full quickly. Be wary of and avoid any all-cash buying deal that takes months for you to receive payments. Sometimes, this indicates a scam alert or simply insolvency on their end. So, check reviews online and countercheck with their references beforehand to clear this up first before committing to a deal.

Avoid Giving Fast Refunds

Most crafty investors tend to write checks and give reasons for wanting an immediate refund. If this happens to you, consider it a red flag. In most cases, if you send the refund and their check bounces, you might lose thousands of your hard-earned money. Ideally, genuine cash buyers always prefer having everything documented and are willing to follow any due legal process if a party wants to alter the sale agreement. So, treat any phone call or email asking for a quick refund just after you cash the check as suspicious or wait for it to clear before giving back money.


Over to You

Do you want to sell your home in the fastest way possible? If your answer is yes, you should note that listing it in MLS or selling it through an agent can slow you down and even cost you more. Instead, many people increasingly prefer to sell their properties to investors and ibuyers.

While they may offer you an all-cash deal, choosing to sell to an investor or ibuyer often promises you a fast sale and quick money. But many often fail to realize the numerous risks involved with selling a property to an investor or ibuyer.

This failure often results in financial losses and terrible home selling experiences. Learning ways to avoid selling your home to an investor or ibuyer will help you make the most out of your property sale. But how can you avoid selling your property to an investor or ibuyer?

This article details four crucial considerations to help you identify and avoid the numerous scam artists pretending to be home investors or ibuyers. To be safe, always remember to do your due diligence by conducting thorough background checks on any potential buyer offering you cash offers.

This will help you verify their authenticity and protect you from being conned. But why go through all this hassle while there is a better alternative?

Woodruff Real Estate & Property Management is a modern-day real estate company that uses cutting-edge tools and offers fully-dedicated teams to help you make the most out of your property. Call (239) 920 8799 or email let’s discuss how we can help maximize your sales price this year.



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