6 Facts You Need to Know About Direct Home Buyers
What are direct home buyers?
The term itself may be relatively recent, but a direct buyer just represents the newest incarnation of something that’s been going on for a long time. Direct home buyers are investors or large corporate entities that use their vast holdings to acquire real estate.
These groups can often leverage large cash reserves, venture capital, or Wall Street-backed funds to make direct, as-is purchases without haggling or hassle. Direct buyers range from house flippers, to investors, to high-volume “iBuyers.”
The benefits of selling to a direct home buyer are numerous, including the prospect of a fast home sale without the need to hire an agent.
Here’s a look at six important facts you should know about direct home buyers.
1. Many Direct Buyers Will Buy Your Home As-Is
This is particularly attractive if your home is in need of major, costly repairs before you can put it on the market.
It turns out that many direct home buyers are willing to make a cash offer for your home, regardless of its condition. In the case of flippers, they like to acquire distressed homes so as to return a sizable profit.
On the other hand, some direct buyers, such as iBuyers, might be less willing to settle for such homes.
2. Dealing With Direct Home Buyers Is Faster
If you’re unwilling to endure the drawn-out process of selling your home, dealing with direct buyers helps you make a quick home sale.
In a nutshell, direct buyers handle inspection and repairs, and there’s no need to deal with the whole lending process. So if the whole “selling my house the fastest way” question is keeping you up at night, a direct buyer might be the best way to go.
3. Avoid “Back Out” Clauses
When it comes to selling your home, “back out” or contingency clauses can be a real headache.
These contingency clauses are important, and are designed to protect buyers. Nevertheless, they can constitute a major hassle for sellers, and are sometimes best avoided.
Direct buyers will still want a home inspection, but there’s less chance of having to deal with additional costs from contingency clauses.
4. Financing Is Easy
Financing can be a tricky part of the home selling process. It can also be a serious bottleneck to quick closings.
Financing means getting lenders involved, and that’s where things can slow to a halt. A cash purchase from a direct buyer, however, circumvents this process for a fast home sale.
5. Avoid Scams
If selling to a direct home buyer seems like a good option, remember to do your due diligence.
Fraudsters like to target those seeking to sell their homes quickly for cash. Avoid companies that charge application fees, and monitor your credit score to ensure no one has taken out a second mortgage on your home.
6. Simplify Things
Finally, dealing with direct home buyers makes the process of selling your home a great deal simpler.
If you’re low on cash, and you need to get out from under your current home, opting for a direct buyer is a good way to streamline things and move on to the next chapter in your life.
Know Before You Sell
The decision to consider direct home buyers when selling your home comes down to what’s best for you. In some circumstances, it just makes more sense to accept a cash offer and close on your home as fast as possible.
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