Last night, I had an interesting discussion with a homeowner who reached out to me online. He owns a property that isn’t in the best condition and has been struggling to keep up with his mortgage payments. With financial pressure mounting, he was seriously considering selling to a real estate investor offering a quick cash deal.
The investors were willing to pay $120,000 for the home—an amount that just barely covered what he still owed on his mortgage. Some of his family members were encouraging him to take the deal, thinking it would be the easiest way out.
While selling to an investor is certainly a viable option, and it would prevent foreclosure from damaging his credit, I urged him to consider listing the property on the open market with an experienced Realtor. Why? Because the numbers told a different story.
In its current condition, I estimated that he could likely sell the home for somewhere between $200,000 and $225,000. If the property were in top shape, its value could climb to $250,000–$275,000. That’s a huge difference from what the investors were offering.
I truly believe he could sell quickly for $200,000, which would allow him to walk away with a significant amount of money in his pocket—far more than simply covering his mortgage balance. I told him directly, “Don’t let an investor steal your home. Let me take a look, and if selling to an investor is really your best option, I’ll be the first to tell you.”
Why Selling on the Open Market Makes Sense
Many homeowners in distress feel trapped and believe a quick sale to an investor is their only way out. But the reality is that listing with a Realtor often results in a much better financial outcome. Here’s why:
- Higher Sale Price – Investors buy homes at a deep discount because they need to make a profit. When you sell on the open market, you’re exposing your property to a much larger pool of buyers, many of whom will pay closer to market value.
- More Money in Your Pocket – Even after factoring in commissions and minor repairs, homeowners typically net more money when selling traditionally versus taking a low investor offer.
- Avoiding Scams and Lowball Offers – Not all cash buyers operate ethically. Some will pressure sellers into accepting unfair deals, taking advantage of their urgent situation.
- Faster Than You Think – Many sellers assume listing takes months, but in a strong market, homes in need of work can still sell quickly to eager buyers looking for a good deal.
The Bottom Line
If you’re in a difficult financial situation and need to sell your home, don’t rush into an investor’s offer without considering all your options. Speak with a qualified Realtor who can give you a clear picture of what your home is truly worth.
A quick sale doesn’t have to mean a low sale. Take the time to meet with our real estate team and explore your options to ensure you’re making the best financial decision for your future.