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Patty, Other/Just Looking in 33189

how much does WE BUY HOUSES really pay?

Asked by Patty, 33189 Sat Jul 14, 2007

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Patty, I am not familiar with WE BUY HOUSES, but it sounds like one of those investing firms that are so popular nowadays. Most investors who get in this way are looking to pay about 70 cents on the dollar in order to make the numbers work for them. That's 70% of market value. So if a home is worth $200,000, you can generally expect an offer of $140,000 from people like this. This works for some homesellers because the investors are able to close QUICKLY as they have the money at their disposal. Most homesellers use this as a method of last resort. Giving up 30% of one's equity is hard to digest
2 votes Thank Flag Link Sat Jul 14, 2007
I am answering this question years later, not for Patty, but for anyone that may have stumbled across this question in google search results... To anwer the question "how much does WE BUY HOUSES really pay?":

It depends on many factors, but most "We Buy Houses" Investors, especially in San Antonio, TX, will pay 65% of the after repair value of a house, then subtract repair cost to arrive at thier maximum purchase price. Hope this helps.
0 votes Thank Flag Link Mon Jul 1, 2013
WE BUY HOUSES are looking for arbitrage opportunities. They look for people who need to sell and buy below market via an outside investor, then resell immediately. So to answer your question, they will pay less than what the market would pay, how much less really depends on each investor. Properly preparing your house for sale and pricing it correctly with an experienced Realtor would get you more (even with commissions) than going with the "WE BUY HOUSES" group.
0 votes Thank Flag Link Sat Jul 14, 2007
These type of companies will offer an amount based on them making money when they re-sell the unit. I would consider renting the unit before going this route.

I will be happy to MARKET your home for sale or lease simultaneously.
0 votes Thank Flag Link Sat Jul 14, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
This is a franchise, but in most cases they'll tell you straight up when you call what they generally pay for homes. If I remember correctly in the Dallas area, they typically pay about 50-60% of the retail value. Believe it or not there is a market for this product. They typically rehab the houses and flip them retail. They also have a good source of buyers who like to buy wholesale, so they may put in a contract and flip it to another investor for $1000 or $2500 profit. Many of the homes I seem them buy are in pretty bad shape. They're family homes that perhaps the parents lived in for 40 years and the kids get them in the will. They don't have the time, money, or interest in rehabbing for the retail market so they sell them "as is" to the franchise. The franchise can pay cash and close quickly and has the sub-contractors lined up to rehab quickly, so it is a win win for everyone.
Web Reference:
0 votes Thank Flag Link Sat Jul 14, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
Maggie is correct with her assessment. The model is to "make" money when they purchase the homes by buying them below market value. The We Buy Houses folks are a franchise, so they have taken this strategy and implemented systems for their franchisees to follow with detailed checklists to evaluate property. It's a great program for folks who are having financial challenges and just need to get out of their homes, but probably not for the average Joe homeowner who is looking to sell to the public.
0 votes Thank Flag Link Sat Jul 14, 2007
Yes, these investors are treating your property like a foreclosure. If you are in difficult situation it is possible to choose that way but if you not, I would wait for market to turn around. Many publications suggest that is going to happen somewhere in the beginning of 2008. Don't forget, it will be an election year. Everything will look better then it is...
0 votes Thank Flag Link Sat Jul 14, 2007
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