You know those signs. The ones usually stapled to telephone poles or plastered on flimsy signs hastily posted at intersections and medians…
“We buy ugly houses.”
“Get cash for your house now.”
The font is usually all caps, and the design is non-existent. Plain black text on a yellow background.
Have you ever wondered about those companies? Have you ever thought about using them? Maybe you’re in a tight spot and really do need to sell your home fast. Should you give these guys a call?
That’s exactly the question we are going to answer in today’s post.
Now, we aren’t accusing these companies of being scams or illegitimate. Most of them do have a completely legal business model.
However, whether they were hung by lone investors or national corporations, those fast cash signs are targeting a very specific type of buyer: someone who isn’t in a place to make a good financial decision.
Generally, their ideal seller is someone who can’t keep up with their mortgage payment anymore and is threatening foreclosure. People going through situations like these…
Homeowners experiencing these kind of struggles are generally desperate to get out from under their mortgage, even if it means taking a significant loss on the sale. The investors who “buy ugly houses” are hoping to lowball them as much as possible in order to make the most possible profit.
To an extent, they are real estate’s version of payday loan lenders. It might be a legitimate business model, but it’s one that definitely doesn’t have the customer’s best interest in mind.
While it’s true that these buyers are probably the quickest possible way to get your home out of your hands, you are going to pay for it.
To turn a profit, investors could offer you as little as 65% of what your house is actually worth. Even the best offers aren’t likely to push past the 80% mark. To put that into perspective, this means that if your house is worth $300,000 you might only be getting $195,000 for it.
Is losing more than one hundred thousand dollars worth selling your home off a little bit faster?
Even if your mortgage is $2500 and it takes you three months to sell your house with a real estate agent, you’re better off. If the agent can get you the true value of your house, then you’ve earned about $187,500 more than if you had opted for fast cash.
If you really need to sell fast, don’t do it cheap. Do it right.
Walden Novak is a trusted name in Denver real estate, and we can help you price your house competitively for a quick sale that doesn’t leave you profitless.
Get in touch today to learn what we have to offer.