Should I Consider a Lowball Investor Offer?

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

Recently, I received a call from a friend asking about a “lowball” offer they received while trying to sell one of their out-of-area properties. Even though they had priced their home very reasonably, this offer was well below what they were expecting, and frankly, it offended them. So, what was happening? As it turned out, this offer came from an investor.

Offers from investors are becoming more common again. According to Business Insider, 44% of homes in the U.S. were purchased by investors last year, and this number is expected to increase. So, if investors pay below market value for homes, why do so many people accept their offers? Does it make sense for you to consider an investor offer when selling? To answer these questions, today, I’m going over three benefits of investor offers you could consider when selling your home:

1. Investors don’t care about the condition of your home. To get top dollar on the open market, you usually need to put in a little work. Painting, landscaping, staging, marketing, repairs, and more are necessary to truly maximize your sale. If you don’t have the time or money to put in this work, or you just don’t want to deal with the hassle, you might want to consider an investor offer. They will pay for your home as-is.They are usually cash, which means there is no loan or other condition requiring those repairs to be made.

2. Investors close quickly. The market is a little slower than it used to be, and this can be a huge hurdle if you need to move as soon as possible. Fortunately, investor sales often move quickly. They’re used to buying homes on a regular basis, and there aren’t many negotiations when selling to an investor since they don’t care much about the condition of your house. They may even be willing to give you flexible closing terms to make it easier for you to find housing after moving.

3. Investors pay in cash. In real estate, cash is king. One of the most common reasons why real estate deals fall apart is because the buyer can’t secure proper financing from a bank. However, you don’t have to worry about that with cash-buyer investors. Real estate agents love working with cash buyers because there’s no delay; if they have the money, they can get it to you immediately.

While it might initially seem like an investor is trying to lowball you, the truth is that they provide an option that gives you maximum convenience. If that sounds like something you might be interested in, call or email me I work with a lot of investors and we can see if your home is a fit. On the other hand, if you’re determined to get the best price possible, I can help get your home ready for the open market with as little stress as possible. I look forward to hearing from you!