These companies want to buy for deep discounts. If you'd be willing to sell at a discount, you might as well list your house for lower than your competition right up front. You may also have a bidding war if you do.

As much as I dislike the cult of the RE agents,I have to say in this case their is a lower (see below)form of human.We buy homes will always give you less money for your home and the more you talk to these subhumans and tell them how bad a shape your finances are the lower the price goes.A distress sale will get you more.I hate that we are seeing more and more of we buy homes/cars sign everywhere and this is a very bad sign of the direction of our economy.

It is a good idea if you are motivated to Sell quickly, As-Is. If you are in this situation, why let someone else gain from your hard earned equity you have built. The auction method MAY be the best method for you in accomplishing the same thing.....the difference? YOU get the profit!! I have written several articles on this subject so please visit my auction website for more information or simply call me Toll FREE 1-877-421-SOLD

Yes unfortunately it is a bad idea. You are likely to make more money on an auction.

I don't think it's bad, you will be leaving money on the table.

The buying formula for the "We buy ugly houses" type of company is Fair market value less the cost of any estimated repairs less 30%.

The way it would break down in numbers is

Fair market value 230,000
Repairs and upgrades -60,000
Equal 170,000
Less 30% -51,000
Net cash offer 119,000

They don't get many but they are in business to make money. If they offer more than the cost to recondition the property and carry the costs on it to the next sale they lose money. They are not out there tro make friends just make a dollar.

Robin
These companies are tyring to purchase property below market, usually they are looking for 20-30% below retail. The positive side is that they can usually close quickly.

My question to you is why would you sell to someone like that, why not try to make as much money as you can?

GREAT QUESTION: You wont receive full market value of your home. GREAT way to sale your home and move on in many instances offer 15% - 30% below market value. These companies are in business to make a profit HOWEVER a win / win situation for all parties. The company has to go in and complete improvements, market, mortgage, insurance, taxes from point of closing WHY offer less than market value in order for their organization to have a net profit on resale.
http://www.lynn911.com http://www.homes-for-sale-dallas.com

Yes and no, if you want a quick sale and it doesnt matter what you get for it then yes. They will not offer market value, they will offer only a portion of it. say 80% or lower of what the market value is. I do not know how much you owe compatred to what it is worth. You will need to know both these amounts before proceeding. If your goal is still fast and you do not mind making only a little tio get out quickly, then go ahead. But call all of them and have them all make offers, dont just trust the first one you call. Good luck