Important Tips when Selling to an Investor
Before signing and entering into a contract to sell your property, we strongly suggest that you do the following.
Checkout on the Buyer
Look for Reviews :
- Better Business Bureau
Ask for a Proof of Funds Letter :
- This will usually be a bank statement or a letter from a bank or private lender
- Call the lender. Do they have a history with the buyer?
The most important thing to do is ask the buyer a few key questions and gauge how they respond to you. We suggest :
- Are you going to stick to this price, or renegotiate it after an inspection?
- Do you require approval from partners, lenders or anyone else in order to complete this deal?
Check with the Secretary of State to see how long they have been in business :
Inspect the Contract
There’s a lot more to a contract besides the sales price and the closing date. You are likely to see 2 types of contracts.
Standard TREC Contract (Texas Real Estate Commission) – which is typically used by realtors in retail transactions.
If you are selling property using a TREC contract without the help of a Realtor, we’ve put together the most important sections to check before you sign.. CLICK HERE
Many investor buyers draft their own contracts. There is nothing inherently good or bad about propriety contracts, but we do suggest having an attorney or a real estate professional review the contract.
As a general courtesy, and to help enforce good behavior on the part of the investor community. Metroplex Homebuyers offers a complimentary contract review to anyone who has questions about a contract.
Check with the Escrow Agent at the Title Company
The title company is responsible for transferring the property rights from the seller to the buyer, and disbursing money from the buyer to the seller. The escrow agent is the person responsible for handling all the paperwork and all the money.
Before you sign the contract we always suggest that you call the title company and ask if they are familiar with the Buyer.
After you sign the contract make sure you call the title company to confirm they received the Earnest money.