5 Tips for Selling As-is Homes to Investors

As an investor myself, I’m often looking at the MLS listings for homes that might make a good investment purchase. Homes being sold as-is doesn’t mean an agent should upload a listing description that says nothing more than a statement that the house needs TLC.

But, I see that type of listing time and again. It means I have to bug the agent to get answers to the questions surrounding things I need to know about the property to decide whether or not I’m even interested in it, much less willing to make an offer.

As-is homes where the buyer demographic is investors can cause a lot of work for the listing agent that can be reduced if I am provided with the information I need to know in the listing.

Below are some tips for creating listings for as-is homes that can help reduce the work involved for the listing agent and get the house sold faster.

 

Make the Seller’s Disclosure available in the documents

You’re already telling me the house needs work, but I need to know what type of issues the home has. As-is listings should always contain a Seller’s Disclosure. In reality, every listing should have this document attached, but it’s especially crucial with listings targeted toward investors.

 

Tell me what I need to know in the description

As an investor, I already know the neighborhood and its amenities. I can see the potential in a home that most owner-occupant buyers cannot, and I can identify “good bones.” Giving me fluff information in the listing means I have to email you to ask what I need to know:

 

-   What known big-ticket issues does the home have?

-   What is the age of the roof?

-   What is the age of the A/C?

-   What is the age of the furnace?

-   What is the age of the water heater?

-   Are there plumbing issues?

-   Are there electrical issues?

-   Are there foundation issues?

 

Not stating the issues up front doesn’t make the home more attractive to me. It means that I’m going to have to bother you to see what those issues are to be able to run numbers. Everything in real estate investing is math, and what I need in the listing description is the ability to run the math to see if the property might be a fit for my portfolio.

 

Include plenty of photos – no matter what kind of shape the house might be in

Assure your sellers that investors have seen it all; we’re not judging. But we need to see as many photos of the inside of the home as possible to help assess the layout and the current condition. Be sure to include pictures of the yard as well. If the seller is uncomfortable with the photos being public on the MLS and all the accompanying sites that show MLS listings, ask for permission to upload photos to a Google Drive folder that you can share in the documents section for agents only.

Giving us plenty of photos will help reduce showings that have no chance of turning into an offer which is especially helpful to the seller if they’re still occupying the home.

Request proof of funds for cash offers

I’ve got nothing against wholesalers, but there are plenty of times they will make higher offers and then shop the contract during the option period to see if they can get a bite. If not, they back out of the deal. This situation wastes your time, your seller’s time, and locks up the house for 7-14 days so that other serious investors won’t see it as Active or put in an offer on the property. Most wholesalers don’t have the funds available to actually purchase the home, so you can help weed them out by requiring proof of funds for cash offers.

 

Don’t forget that investors need to turn a profit

If you’re pricing the home at its after rehab value minus the cost of repairs to get it there, then you’re targeting owner-occupants that want to purchase and rehab the house while living in it – not investors. Investors have to turn a profit, and if you’re pricing it without room for some, you’re going to have a hard time selling the home to a real estate investor.

 

Cheers,

Rae Dolan
Katy Realtor
Champions Real Estate Group
BuyingKaty.com