Who Buy Houses and Why

If you are about to sell a house for the first time, it will be an advantage to know a few types of buyers you will encounter. Knowing their motivation to buy your house will also allow you to see what you can do to make your house more attractive to them.

Here are some types you are likely to encounter and why they buy houses. Just like us, we buy houses and this is how it is done.

Property Developers

These are fairly common types of realtors. But you may not often see them asking about your house. Developers are individuals or companies who would rather buy an empty piece of land and find opportunity around it and build a structure which they can earn a huge profit from their investment.

Rehabilitators

Their business model is to buy rather old houses and then remodel or renovate them to make them more modern and thus more attractive to buyers at a higher price. These are hard-working individuals who have plenty of connections who save up money for when an ideal house for rehabilitation comes along.

House Flippers

These are people who buy houses at a low price and go straight into selling them at a higher price. They usually maintain the house and do minimal to no changes to the house. Their goal is to sell fairly quickly and generate fast profit.

Real Estate Agents

As agents, they work together will sellers and buyers. They provide each party with a fair amount of information for the house and look for fair deals for them. Additionally, they take care of some paperwork including the contract for the deal. They earn money by the commission.

Getting an agent to help you will reduce the legwork when you want to sell your house. They can reach out to their network for potential buyers. You may also want to consider that getting an agent may take time because an agent may sell several houses at the same time.

Landlords

These people usually own multiple properties and have invested a lot of money in them because rentals may be one of their primary sources of income. They usually own apartments they rent out.

Buying Companies

There are some companies whose business model is to buy houses as fast as possible. They are a combination of all these types of buyers. These companies have ready finances so if you need to sell your house quickly, they are the most ideal ones to reach out to.

In addition to fast transactions, they also buy houses in any condition and they don’t subtract that to the overall value of the property they are buying.

Conclusion

There are many types of buyers out there. What’s important is to always transact with transparent and credible buyers. Make sure that it is clear how much you are getting paid and when.