Should I Consider a Lowball Investor Offer?

By Burt Tsuei

A Realtor with 20+ Years of proven track record of high quality service in the San Mateo County/Bay Area. A lifelong Bay Area resident, Burt works with buyers and sellers from Pacifica to South San Francisco to Redwood City and beyond. Burt is passionate about selling real estate in the mid-peninsula, and inspired by his clients’ goals and dreams. No matter what your unique needs are, whether you’re transitioning from city living or stepping up to a larger home, his mission comes straight from the heart: to protect your best interests and make your experience seamless.

Recently, I received a call from a friend asking about a “lowball” offer they received while trying to sell their home. Even though they had priced their home very reasonably, this offer was well below what they were expecting—what was happening? As it turned out, this offer came from an investor.

In case you aren’t aware, offers from investors are becoming more common all across the country. According to Business Insider, 44% of homes were purchased by investors in 2023, and this number is expected to increase.

So, if investors pay below market value for homes, why do so many people accept their offers? Does it make sense for you to consider an investor offer when selling? To answer these questions, today, I’m going over three key benefits of investor offers you should consider when selling your home:

1. Investors don’t care about the condition of your home. To get top dollar on the open market, you need to put in a little work. Painting, landscaping, staging, marketing, and more are necessary to truly maximize your sale. If you don’t have the time or money to put in this work, or you just don’t want to deal with the hassle, you might want to consider an investor offer. They will pay for your home as-is, which means they don’t care if it’s a bit of a fixer-upper.

2. Investors close quickly. The market is a little slower than it used to be, and this can be a huge hurdle if you need to move as soon as possible. Fortunately, investor sales often move quickly. They’re used to buying homes on a regular basis, and there aren’t many negotiations when selling to an investor since they don’t care much about the condition of your house. They may even be willing to give you flexible closing terms to make it easier for you to find housing after moving.

3. Investors pay in cash. In real estate, cash is king. One of the most common reasons why real estate deals fall apart is because the buyer can’t secure proper financing from a bank. However, you don’t have to worry about that with cash buyer investors. Real estate agents love working with cash buyers because there’s no delay; if they have the money, they can get it to you immediately.

While it might initially seem like an investor is trying to lowball you, the truth is that they provide an option that gives you maximum convenience. If that sounds like something you might be interested in, call or email me, and I can get you a free quote for an instant cash offer on your home. On the other hand, if you’re determined to get the best price possible, I can help get your home ready for the open market with as little stress as possible. I look forward to hearing from you!