How to Sell To An Investor? – 5 Questions to Ask a House Buyer

How to sell to an investor - 5 Questions to ask a House Buyer
Video Transcription

Johell with Move On House Buyers, and I wanted to discuss with you today just a simple conversation around five things to consider when you are interviewing cash buyers. It’s a big decision. You’re looking to sell your home as is, you don’t want to make repairs probably, or you’re just going through a life event that is providing some hardship that you just want to get rid of the property and get cashed out. Completely understandable.

Now you know if you’re watching this video, you’re probably past the stage of, “I want to list it, I want to fix it, I want to wait for an owner occupant to buy the property at the most value of the home after I make the repairs and go through that process.” So really, selling a house as is to a cash investor should be simple, because what we do on the marketplace is we provide you time and convenience in exchange for a discounted sales price. Okay?

But I want to go even deeper into what are the five things to consider, or at least our five key promises to you as a seller, when interviewing different cash investors. So the first thing to consider is, is the person that’s saying that’s a cash investor, are they a direct buyer? And do they have in their documents? Now, if they’re not a direct buyer, they may be a wholesaler. Nothing wrong with that. Completely legal in some of the states. I think Illinois passed a law just recently. But the bottom line is, you want to have a clear understanding if you’re dealing with a direct buyer if they’re looking to buy the property directly from you, if they’re looking to assign it to an end buyer, partner with somebody, or what is it? Right? So you want to understand that, because that might change the dynamic to actually getting to closing and actually getting the funding. Okay?

Then the other piece is, do they have proof of funds? Now, the reality of it is, is that investors promote themselves as cash buyers. Now really what that means is that they’re not bound to traditional mortgage methods and those timelines. It typically means we have real hard cash in our accounts to be able to close, or we have access to cash through private lenders, private lines of credit, things that move a lot much quicker and also don’t mind repairs and are not subject to two, three, four different processes of under-screening and underwriting. So what you want to understand is, do you have proof of funds, Mr. or Mrs. Investor? Do you actually have the capability and the financial wherewithal to close on my property?

The next piece is earnest money. Earnest money is something that is often overlooked. When a buyer is offering to buy your house for cash, you want to understand that they’re including earnest money. Now this is real money that they have to deposit at the title company, the escrow company or attorney, depending on what area you’re in. You want to make sure that they have earnest money in place, because that shows seriousness. Now, quantities may vary. In our case, we’ve seen anywhere between $200 to a $1,000 to $3,000 depending on the size of the deal. The important thing is that there’s actual available consideration or earnest money as part of your contract, because if they don’t close by the terms and the date that they say they will close and everything has gone through inspection period, that earnest money should belong to you if title’s clear.

Now, the fourth piece is inspection period. Depending on what investor and how experienced they are, they might offer a cash offer with an inspection period or a due diligence period or just really any contingencies, any back out phrases that might allow the buyer to back out. Now, it’s pretty typical for any buyer to have an inspection period. It’s just something worth considering. Is it five days, is it seven days, 10, 15, is it 30? How long is this inspection period good for? Because while they have that time as a buyer, I’ll able to inspect it and back out and be allowed to have my earnest money back. So you want to make sure to see if they actually have an inspection period in there.

The last one is testimonials. Testimonials, right? Does this investor actually have testimonials? I’m not talking about big companies that say, “Hey, yeah, we work with this company, and we do have testimonials.” No, like the person that you’re working with, the office that you’re working with, do they have actual testimonials? Are they with the Better Business Bureau? At, we are with the Better Business Bureau. We’re one of the few accredited house-buying companies local in the market.

So again, the process of selling a house to a cash investor should be simple. Essentially, we’re buying your home, but we are giving you time and convenience. So if you’re interested in a cash offer, give us a call or visit us at Thank you.

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