When a disaster strikes, communities tend to band together to meet each other’s needs. Home investors may be available to help, but it is difficult to know which ones are legitimate and who are the opportunists. If you considering selling your home as-is to investors during a time of crisis, here is a useful guide to help you weed out the scammers.
Selling Your Flooded Home to Investors
To recognize a credible home investor, you must first understand how a professional operates:
- A reputable home investor must know how much a house can sell for if it the damage is repaired, and it is listed for sale. To come up with this figure, an investor will research comparable home sales. These are sold homes that are like the property the investor is considering. Comparable properties would have about the same square footage, a number of bathrooms, bedrooms, geographic location, and more. The investor will also look at how long it took to sell the home compared to other houses in the area.
- A good home investor will determine what repairs are necessary to get the home into sellable condition at the best possible price. This covers structural and health concerns as well as cosmetic fixes. More serious problems can make a home unlivable. Structural and health-related issues must be repaired. If several homes in the same neighborhood got flooded, this can lower the property value. Prospective buyers may see this as a risky area, a future flood threat causing the price to plummet. There is no way of knowing what the new home value will be after a flood.
- A home investor will hire a professional contractor to make the needed repairs. In the event of a natural disaster like Hurricane Harvey, where many houses flooded, there will be a short supply of materials and reliable contractors. Homeowners are likely to wait months for a professional contractor to become available and fix the damage.
So, you now know how to recognize a quality home investor, this is how to sell a flooded home:
- Ask if the investor is based locally. If not, move on.
- Find out if the investor plans to flip the home or fix it, rent or sell. A credible
- Is the individual dressed professionally? Does this person knowledgeable?
- Do they work under the rules set by a reputable regulatory association such as the TREC?
- Have the investor provide professional references.
- Ask about weasel clauses, do the investor use them? If so, chances are the sale will never be closed.
- Research valid purchase agreements. Does the one presented to you look legit?
- Does the investor use a lender, if so, who? Ask for verification or proof of funds.
The goal of the home investor should be to provide a positive experience for all involved. You should not be required to pay for expensive home repairs, the sale should be fast and easy. The benefit of selling your flooded property as-is eliminates the hassle of working with contractors and allows you the freedom to move forward and start over again fresh.