What It Means to Sell to a Professional Buyer

A professional buyer is someone who buys houses as a business rather than to live in them. I'm one of them. Before you decide whether that kind of sale is right for you, it's worth knowing exactly how it works, including the parts that don't flatter people like me.

What a professional buyer does with your house

After I buy a house, one of two things usually happens. Sometimes I renovate it and sell it, which is a flip. Other times another investor, the end buyer, steps in and does the rehab; that's wholesaling. Either way, the house is going to be fixed up, and the price I pay has to reflect that.

How the price gets set

My offer starts from what the house could be worth once it's renovated. From there I subtract what the work will cost, what it costs to hold and sell the property, and enough margin for the project to be worth doing. When I'm wholesaling, the end buyer needs room as well. I try to build a deal where you, me and whoever comes next all come out fine.

That's why a professional buyer's offer will be below what a renovated house next door sold for. It's also why I'm upfront that an agent can usually get more for a house that's already in good shape.

What you get in exchange

• No repairs. I buy as-is, so the roof, the wiring and the 1970s bathroom are my problem after closing.
• Any condition. Fire damage, or a house nobody can live in, doesn't rule it out.
• Tenants can stay. I buy with tenants still living there.
• Condos too. I buy condos as well as houses.
• No clean-out. Keep the things you care about and leave the rest; I handle the cleanout after the sale.
• No commission. You're dealing with me directly, so there's no agent fee coming out of the sale.
• Your date. I close when you're ready, without pressure to hurry.
• A free offer. Asking costs nothing and obligates you to nothing.

What you give up

Mostly, you give up price. You also skip the chance that a bidding war among retail buyers pushes the number higher. If you have the time and the house is market-ready, that trade usually isn't worth making, and I'll tell you so.

How to judge any professional buyer

Ask how they arrived at their number and listen for specifics. Ask who pays the closing costs and get the answer in writing. Ask whether they plan to renovate the house themselves or pass the contract to someone else. A buyer who gets vague or pushes you to sign quickly is telling you something. Have an attorney look over any contract before you sign it; that advice applies to my contracts too.

Why I'm comfortable with this business

I've been investing since 2007, and I've done many deals and flips, including houses that were in no shape to live in. The analysis behind each one used to take me hours, so I created Appraize.ai to give me a quick first read before I dig in. If you want to see how the rest of my process works, read how I buy houses, or compare it with listing.