Ask the Realtor!

I have been approached by an investor who wants to purchase my home.  My home needs so much work and I can no longer care for it.  I’m sure he saw that and that is why he knocked on my door.  He has given me a number that he will pay however I’m not sure if that is the market value of the house.  I have been thinking of putting the house on the market and do not look forward to many people marching through my house.  How do I know if he is offering me the right amount of money and is this the best way to sell my home?

This is not the best way to sell your home.  Keep this in mind…most investor wants to get the home for the least amount he/she can while most Realtors wants to get you the most amount he/she can. 

Before signing anything with the investor you spoke with call a LOCAL EXPERIENCED REALTOR who sells many homes in your area.  Have that Realtor visit your home and ask them to provide you with the current market value.  Ask him/her to provide you with comparables so that you can make an educated decision as to the value as well.  If you have chosen a Realtor who is experienced in the area you are selling, they will provide you with the market value.

Explain to the Realtor that you do not want the house to remain on the market for an extended period of time as you want to avoid as much disruption as possible.  The Realtor will be able to provide you with a price that should bring all the buyers through the house in the first week that will result in a sale.  Speak to the Realtor regarding the offer you have from the investor.

There is much more to selling a home and getting that home to settlement then simply having a buyer.  There are negotiations.  You must have proof that the investor is able to financially purchase your home.  There are Use and Occupancy issues if you are in the Borough and an Agreement of Vacancy is needed. There are tax certifications to obtain. 

It is always best to trust a Realtor with these situations to be sure you are reducing liability as much as you possibly can.  Also be sure that you have completed a Lead Based Paint Disclosure if your home was built before 1978 as well as a Seller’s Property Disclosure and that it is signed by both you and the buyer.  These forms are required under Pennsylvania State Law.

If the home is priced correctly for a quicker sale you will probably find that you will net more by choosing to list with a Realtor then through a sale with an investor even with the commission involved.  The other closing costs will be there regardless of whether or not you choose to sell through a Licensed Realtor.  If this investor is truly interested in the house he will come back and make an offer.  If not there will be many others that will.

My best advice to you is to save yourself the hassle and have a Realtor represent you.  I am frustrated over and over again when I find what an investor paid for a property through a private sale knowing that the Seller of the property could have netted much more profit had they hired a licensed Realtor.

Should I have the Use and Occupancy completed prior to selling my house so that I am aware of the repairs that will be required by the Borough?

You can have the Borough come out to inspect your property for a Use and Occupancy after filling out the application and paying the $100.00 fee.  Normally the U&O is only good for a period of 30 days which is why it is completed after an Agreement of Sale is in place.  You can avoid having the property re-inspected by hiring a Realtor who is experienced in your area.  An experienced Realtor will be very familiar with the requirements of the Borough Inspectors and will be able to guide you towards what should be completed.  Every once in a while something does come up that we did not expect but the majority of the time we know what they will require.

The Borough also has a list of items that they will look at during an U&O inspection and you can certainly request one from them.