WARNING – Will Buy Your House For Cash!
You see them everywhere. Freeway off ramps, on telephone poles and even on the sides of cars. The signs make claims that they will purchase your home fast and with cash. It kind of feels like it’s a blanket statement. Like they’ll purchase any home at any price right now. I even saw a sign that said I’ll buy your house in 7 seconds. Wow! They even promise to take the house off your hands in any condition and under any situation. That sounds great. But, before you even consider calling one of these signs there are a few important things you need to know.
In almost every case the people who put these signs up are real estate investors. They are looking for quick fix and flip, wholesale deals or people who otherwise are in a desperate situation who because of their circumstances are willing to give away lots of equity in exchange for the quick sale.
Some people say these people are evil. The reality is that most of the time the people who show up are sweet as sugar. After all, no one would want to work with someone who is aggressive and pushy.
They will convince you that using them to sell your house at a huge loss is the best way to go.
Who usually calls on these signs?
From all the trainings and meetings I’ve attended in the real estate space, it is reported that there are a handful of people who end up calling the number on the sign.
Sudden Life Change
Sometimes people are hit with a sudden life change. That change may require them to move immediately or for financial reasons like medical or legal reasons, dump the current mortgage payment. These people are usually very susceptible to the investors lure of a quick sale but know that investors can spot this situation a mile away. And as such, they will grind this home seller down to the bone making them realize they have no other options.
Impatient Equity Seller
If this is you, you have equity in your home, it’s in pretty good or excellent condition but you just don’t want to sit on the market for months. You’ve already checked the comparable sales and have a good idea of what your home will sell for. The problem with you calling this sign is that when the investor shows up and is only willing to offer you 60-80% of the value of the home, you’re insulted, you feel like you wasted your time and you don’t understand why someone just won’t come along and buy your home. The answer is simple, you are not the investors ideal target. They are after the “buy low, sell high” situation and you’re just not going to go along with that are you? But… there is an option you can explore that will get you fair market value for your home with just one open house. We’ll discuss that in a moment.
So you’ve been assigned as personal representative of your family members or friends estate. Among other things you are now responsible for the financial well being of the estate. That includes making the mortgage payment, paying the utilities and paying for maintenance of the home. I hear from personal representatives that they sold to a really nice investor. After all, the property needed updating and lots of care. Besides you can’t afford to pay the estates mortgage and your own mortgage or rent. So dump it quick right? Maybe so but it is usually at the detriment to the estate and if some other heir came along and wanted to argue that you didn’t do everything to get the highest and best value for the home then things could get ugly for you. Don’t worry though, there is another solution. A more profitable one that is just as quick.
Short Sale / Pre-Foreclosure
You’re being forced to sell your home simply because you can’t keep up with the payments. You realize it’s better to sell than to just let it go into foreclosure but you don’t want the hassle of having a sign in the yard or having strangers walking through your house at the most inconvenient times just to talk trash about your decorating decisions. So, in this case the investor route sounds like a good one. They make an offer, submit it to the bank and quietly close escrow right? Well, sort of. Almost all the time, these investors insist that you sign over authorization to communicate with the bank on your behalf in order to negotiate a sale. There are a few negatives. First, they will now have access to your private information. In today’s environment, you don’t want to risk any kind of identity theft. Even if you think you have nothing to lose anyway, you never know what happens years down the road when that investor throws out a box of old papers including your personal information. Also, that investor while negotiating with the bank will do everything they can to squeeze every penny out of the deal. Unfortunately during those negotiations they are not concerned with getting any benefit to you. Oh, they say they will but they can either work to get you a few thousand dollars for moving expenses or reduce the price that much further to put equity in their pocket. In the end you’ll never know. Don’t worry though, there is a better more reputable option available and focuses on getting you every benefit available because the home gets sold for a higher price which makes the lender more willing to help you.
A Variety of Other Reasons
Only you know what is motivating you to want to sell your home fast. Generally speaking there is no longer any reason good enough to give away any of your hard earned equity just because you want to sell fast. Yes in the old days that was the case but no longer.
What is a good alternative if you want to sell fast?
Every real estate agent everywhere has been trained on and knows that if your home isn’t sold within the first 2 weeks, you’ve blown your opportunity to sell the home for it’s maximum value. Go ahead and ask any agent you find. If they say otherwise they’re not telling you the truth for some reason. Decades and decades of research show this to be true over and over.
So if that’s the case then why are homes sitting on the market for months at a time before ever getting any kind of offer? The super simplified answer is that most agents don’t have the ability or understand how to make this formula work: Maximum Exposure + Targeted Buyers = Sold Home.
Wait a minute, don’t all agents know that formula? The answer is yes. The problem is most of them don’t know how to execute it.
They claim to get maximum exposure for your home through the MLS and their company websites syndication but none of that exposure is targeted to buyers who are looking specifically for your home.
There are only a small handful of ways to do this and at the risk of sounding biased, I believe the Amazing Open House program is the best.