Here are the main differences between investor buyers and retail buyers.
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What’s the difference between a retail buyer and an investor buyer? Many of my clients have been asking me this question, so I am here today with the answer.
Typically, retail buyers offer the most money for your home since they purchase it at market value. They want to buy a property to live in and may pay cash or take out a loan. Their primary goal is to use and enjoy the home as a primary or vacation residence. While renting it out is possible, personal use is usually the priority.
Homes in good condition, insurable, and qualifying for most types of financing are usually marketed to retail buyers. When a real estate agent assesses your property, they generally provide a market value. However, homes that require significant repairs or are in poor condition may require an investor or iBuyer. There are some slight differences between the two, but in general, these types of buyers often offer cash and buy the property "as is" with few or no inspections.
The investor buyer considers the current condition of the property, the estimated cost to bring it up to retail value, and then subtracts an amount to make a profit on the property. In general, these parties don’t offer market value for your home.
If you want the most value for your house, approach a retail buyer and have a broker or Realtor assess its value. However, if your property requires significant repairs, an investor buyer may be the better option.
If you're considering selling your property and are concerned about its condition, please do not hesitate to call or email me. I will be happy to assist you.
