Are you looking to sell a house in Baton Rouge, the [market_zipcode} zipcode, or anywhere in Louisiana? Then this blog post will answer the question, “Would an investor buy my house in Baton Rouge for close to asking price?” Keep reading to find out the answer…
You have two main options when selling your house.
- Option One: sell it on the market by stating your asking price and then working with an agent to try and find a buyer (or trying to find a buyer yourself with a for sale by owner).
- You can skip the “sell-on-the-market” process and just work with a buyer directly (like what we do here at BuyhousesBR) who can offer you a price for your house.
If you were wondering, “Would an investor buy my house in Baton Rouge for close to asking price?” then here’s what you need to know:
Why Investors Invest
There used to be three reasons to invest in real estate, but the government closed a loophole that was creating large tax write offs so now there are only two. Before that loophole closed, investors happily would invest for a loss. Now, an investor invests in real estate because they hope to buy at a lower price and either sell at a higher price or rent out the property. Now, the only way to have a profitable business is to invest in affordable properties.
Why would anyone want to sell to an investor then? They provide several benefits.
Understanding The Asking Price
Your asking price is a starting point for the negotiation, not the ending point. Even if you sell to someone on the market (through the help of a real estate agent), your asking price will be the starting point and the buyer will usually try to negotiate a lower price or other benefits like you covering some of their closing costs.
Most people don’t realize that the asking price for many houses on the market have hidden factors built in besides the value of the home… for example, it assumes that the property has been repaired and cleaned up so it’s in pristine shape and ready for buyers. Also people forget about holding costs – bills, insurance, and taxes on your property the whole time an agent tries to find a buyer (which can take months). And then you’ll have to pay the agent a commission, which usually is thousands of dollars.
Your asking price if you list the home will include all of these.
An Investor Skips All This
When you work with an investor, you actually skip all of this. You don’t have to fix up or clean up your house so you can save thousands of dollars there. And, you don’t have to pay bills, taxes, and insurance for months while you wait for a buyer to be found, so you save thousands of dollars there. And, you don’t have to pay a commission because no agent was used, so you save thousands of dollars there.
Add it all up: you save thousands of dollars by selling TO an investor instead of selling THROUGH an agent. That sounds great, right? Why doesn’t everyone do that then? Well every situation is different and what makes sense for one person may not be ideal for another.
Summary
Selling to an investor allows you to sell faster and avoid many expenses and hassles. That’s why an investor might not be able to buy a house near your asking your price. However, the discount you might provide them is money you might not see anyway while you wait months to sell your house on the open market.