Alternative home transaction formats are eating the world
We are all familiar with the traditional method of home selling. A prospective home buyer visits with a Realtor who acts as broker and goes through the different home options depending on the requirements of the buyer. He will then list a number of homes, according to the buyer’s budget and after a series of negotiations and home inspections, the buyer decides to purchase the home or not. But this trend began changing when a new kind of home buyer evolved. And that’s when the realtor or an investor became the home buyer. This has actually changed the way in which the real estate industry has been functioning. Now what investors do is buy homes from sellers, upgrade and renovate them according to the latest trends and then sell them for a profit.
Most of the Realtors buy the home in as-is condition, so they can do the upgrades, sometimes according to buyer demands and then sell them to the buyer. The Realtor earns good profit out of this. Here are other reasons why this process is so popular in today’s market:
- This has led to the rise of home investors who buy homes in any conditions
- It has become an alternate career for investors who knows the market well
- Investors can make a home appealing to the buyer
- The seller doesn’t have to wait for ages to sell a home, nor does he have to spend precious dollars on renovating it
- Real estate transactions have become faster
However, it is important to be cautious about this process,
Selling the home below the market value
Often it so happens that a seller may want to sell his home in a hurry. The reasons could be many, but when there is a rush, there is a chance the seller would have to sell the home for “below the market value” rate. The seller may not be happy with the price he is getting because he may have to lower it in order to sell it.
Sieve the scam artists
There are likely to be scam artists who pretend to be investors. Fraud in real estate transactions are likely to be high in such cases, so if you are planning to sell your home to an investor, verify their credentials by looking up references and researching online.
Investors don’t need licenses
The sellers are always at loggerheads with themselves. They don’t exactly like the idea of someone selling their property and earning a huge profit from it. That, and the fact that investors don’t need licenses to buy and sell properties, makes sellers wonder about the motive behind the real estate transactions.
Conclusion
The ease and convenience at which transactions happen ensure that this trend is here to stay. People gladly welcome it because they get customized homes (especially when a realtor upgrades the home according to a prospective buyer’s requirement) and sellers wanting to sell in a hurry, can get rid of the home. Things move fast here, and a home necessarily need not stay in the market for months.