When To Use “We Buy Houses” Companies

When home owners are trying to sell their houses in a buyer’s market, it means some homeowners will be more desperate than other to sell their homes fast. With the number of houses on the market growing, there are businesses springing up that are focused on buying some of these properties at below market prices, then either reselling them or renting them out. These are real estate investors, who are seeking to purchase properties for their portfolio, or to flip, similar to the shows on television. You’ll see these ads on television, in the newspapers, and on billboards, screaming “We Buy Houses – All Cash” – or similar claims. What’s the deal with these companies? Are they legit? can they be trusted to get you a good deal? How much will they pay you for your home? There are a lot of misconceptions about what’s involved with these services, here’s some info about how these companies work.

The bottom line for all of these We Buy Houses offers is that the buyers want to pay the lowest price possible. In some cases, they will try to buy your house for 50% of the market price, so that they can put in the work needed to improve the property and resell it. Or, if they intend to rent the property, they will need the rents to more than cover any mortgage on the property. Many sellers are stunned or insulted at such low offers, but if you do the math, and build in a certain rate of return, which these investors are doing, the offers are only meant to reach certain business profit goals, not make the seller happy.

Not all investors will offer just 50% except in cases where the house needs work or has other defects, like a poor location. Some investors will offer 70% of the market price, but this is usually still lower than a seller might get on the market. Yet even though the price they offer might be low, usually these investors have a ready source of cash, and can close fast – they can sometimes close within a week, at which time you will walk away with your property problem dealt with and can move on with your life. They usually will also consider properties that need a lot of work or rehab, or properties that are non-conforming or have other problems, where a buyer in the retail market will be much more picky.

Finally, if you are underwater in your home, these investors usually have experience with working with banks to get a short sale, which means the bank agrees to take less than they are owed to be able to sell the property. All of this can all be worth taking less on the selling price for some sellers.

If you’re prepared to consider a lower offer to get rid of your property, this is usually how it works when you contact a We Buy Houses or We Buy Homes Quick company. First, you should call as many as you can find ads for. You will get a variety of responses, include some who just never call you back at all. These individuals will likely ask you question over the phone, and see if it’s worth their time to pursue your home. At this point, they want to know basic details about your home and the location, and see how flexible you are on price. They may decide on this call that they are not interested, but if they are, they will probably come to take a look. Be sure to ask them some questions too, like how long they’ve been in business, if they have any references, if they are also a licensed real estate agent (which they should be telling you up front). You don’t want to just let anyone at all into your home. Ask how they buy homes, and how long they take to close on a home. Don’t be shy about letting them know you are talking to other companies too.

Assuming they come to look at your home, don’t both pointing out the new paint job you just did in the bedrooms, or the new bathroom vanities. THese people are professionals, and know what they want to see. They don’t care about the things you might point out to a regular home buyer. So just let them walk through the house at their own pace, and answer questions if asked.

Once the investor decides your home is worth making an offer on, they will usually already have contracts with them. They will give you a verbal price, and if they want the home, will likely write up the paperwork right there. A word of caution: These buyers are expert at getting the lowest price possible. That means they do not want to give you time to shop their offer around. Don’t be intimidated! You should always say, you need to have your lawyer look at the paperwork, or you need a day to review the paperwork on your own. Pressuring you to sign a deal that you don’t have time to review in detail will not work out for you in the end. If they are legitimate in their offer, they should have no reason not to let you think about it. They may say they can’t offer that price beyond the day they visit, and if so, then let them go. However don’t expect them to wait for a week either. If you think their offer is fair, then be fair with them as well, and review quickly and decide. many times, investors will make multiple offers in a day or a week, so they really do need your answer quickly before they move on the next deal. Just don’t let them force you to sign a lot of paper work that you need time to review.

Another thing some investors will try to do is write up an agreement that locks you in to their deal only, for a week or several weeks. With this type of deal, they aren’t actually offering to buy the property, but rather will shop the deal around. don’t sign this kind of deal. If they are not going to make an offer to buy outright, with commitments to their price, you don’t want any restriction on being able to continue to shop your house around. Offer instead something called an option. If they take an option on your home, that means they are offering to buy at a certain price, but they don’t have to buy it. This still allows you to sell in the mean time until they exercise their option and sign an agreement to buy. Usually they should pay you an option fee, of at last a few hundred dollars.

Which brings us to the last point. Investors are also trained to give you as little down payment as possible, sometimes they will offer just $50 or $100. This allows them to walk away from the deal with almost no repercussions at all. If they are serious, make them pay more, $1,000 or more, if they promise to close in a week. Serious investors do have the cash, and know that it’s worth it to lock in a good deal. And at least if they walk away, you will have a decent amount of money in your pocket to make up for the lost time.

When you work with investors, it is a good idea to also have a lawyer look your paperwork over, because there are portions of the deal you might miss, or might misunderstand. They will also know the law in your state, and what’s appropriate and what’s not. Don’t short change yourself by skipping this step.

If you know the pitfalls and positives of using a We Buy Houses company, you never know – you might be able to sell your home fast, for cash, and walk away a satisfied customer.

When You Want Someone To “Buy My House”

If you need to sell your house quick for financial reasons, you are probably searching the papers and online for someone who wants to “buy my house” and hopefully they will buy fast. The folks who run these kinds of “We Buy Houses” ads are usually investors looking for homes to buy fast and for cash. The deal can benefit some home sellers, but may not be right for others, so here’s what you should look for from investors seeking to buy.

Understand that these buyers are in the market to make a profit. They don’t want to live in your home, but rather will buy it and sell it to a homeowner, or keep it to rent themselves. They are buying for business reasons, and are not trying to insult you with their low offers. They have carefully determine what they can pay and still make money on the deal.

Some sellers aren’t happy with the fact that the investor is going to make money on the deal, but expects the seller not to make as much as they wanted. Remember that the seller however has a need greater than making money, and that is to get rid of their home. They need a quick home sale, and the price almost is secondary. Obviously, a home seller does not want to bring money to the closing table, i=or just can’t. But that’s where an investor can help. They have tools like the short sale which they negotiate with your lender so that they lender will sell th house for less. It might not mean you as the home seller will make profit on the home, but then today’s real estate market has most homeowners under water anyway, with little or no equity in their homes to begin with.

Don’t turn down an investor just because their price is low. Talk to them, negotiate with them, and see what exactly they can offer you. And be sure to take your time to consider any offer before you sign on the dotted line.

What To Expect When You Sell House For Cash

You’ve seen the ads – We Pay Cash For Houses, or Cash Offer For Your Home in 24 Hours!  What’s the deal you can expect to hear when you want to sell house for cash?

As you can expect, if you’re selling your house for cash, you’re talking to buyers who are looking for a deal.  They are not going to pay market price, but these buyers are looking for special sellers: Sellers who need to sell property fast, sellers who have to get out from under their mortgage immediately.  These buyers are looking for that needle in a haystack seller who is willing to just wash their hands of the house and do what is necessary to sell house fast.

The house buyers who pay cash for houses usually want to know that there are no extra details to work with – just the owner of the home who has hopefully some equity, or a bank that’s willing to work with them to get the house sold as a short sale.  You will see their we buy houses ads on televsion and billboards.  A short sale is when the mortgage holder agrees to a discount on what they’re owed so they don’t have to foreclose and wind up with a property they can’t sell sitting on their books.

Sellers who need sell a house quick for cash right away, such as folks trying to sell after a death in the family to settle an estate, or homes that need too much work for the usual retail buyers, are the kinds of sellers that can sell house quick for cash.  Sellers who also can qualify have homes where they may be facing foreclosure, but still have some equity in the home, and are unable to refinance for credit reasons.  These folks don’t want a foreclosure on their head, but they can’t wait months and months to sell their home either.  If they want cash within a week or two, they can get it from these cash buyers.

The important thing to remember when trying to sell house for cash is that you must be flexible with these buyers, they are not going to pay your asking price, and they are not going to pay the full market price of the home.  These buyers are investors, and they have to work out the numbers any time they buy home for cash in order to make sure it’s a financial deal worth doing for them.  Their low offers are not personal, not a critique of your property, but just a hard business decision, based on the returns these investors need.