When selling a property, flippers can offer one of the best possible deals. They expedite the home sale process, pay cash, eliminate commission costs, and close in days.
But since they’re not like typical buyers, you need to use a unique approach when transacting with them. To get the most benefit when dealing with flippers, avoid these cardinal mistakes:
1. Investing in Capital Improvements
Lesson number one is to forgo home improvements, especially costly ones. Flippers are real estate investors that purchase properties — not to live in them but rather renovate and resell them for a profit. Sweat equity doesn’t guarantee to add value to your house because there’s no telling whether the changes you make would appeal to your prospective flipper.
You should only work with one when the description of your listing says this: “selling my house as is.” In fact, one of the advantages of dealing with an investor is avoiding the expense and hassle of tackling capital improvements.
2. Believing That Home Warranties Can Make You More Money
You’ve probably heard that throwing in home warranties into the equation can sweeten the deal and give you leverage at the negotiating table. While many properties that come with some kind of home protection spend less time on the market and get sold for more money, they might not matter to flippers.
Transferable warranties usually remain valid only up to the second owner of the property. A flipper, however, won’t buy your house to make it a primary place of residence. An investor is only interested to beautify it in order make it more marketable and to get it sold for a higher price. Ultimately, the future owner of your house would be disqualified to inherit your warranties, rendering them irrelevant.
3. Doing Little Research
Despite the popularity of house flipping, real estate investors are still widely unregulated. They’re allowed to do business without obtaining any license, making it easier for scam artists to rip unknowing sellers off. To protect yourself against fraud, exercise your due diligence. Working with a legitimate real estate investment company accredited by the Better Business Bureau (BBB). Read reviews and ask for references to size up your prospective flipper before moving forward with the deal.
Selling your home to a flipper can be advantageous, but manage your expectations. If you know what you’re getting into right from the start, you can the best out of the deal.