Home Selling in Watertown>Question Details

Roger M, Home Seller in Watertown, WI

We have a house contracted with a realtor in Wiconsin, but it has not sold in 1 1/2 years. Should we consider a "cash for homes" agency?

Asked by Roger M, Watertown, WI Thu Nov 11, 2010

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Brian's correct. The "We Buy Houses" folks (and as an investor I offer that service, too) will typically pay you about 60% of the after repair value minus repair costs. So let's say your home, fixed up, would sell for $200,000. And let's say it only needs about $10,000 in work--paint, carpeting, some repairs, a bit of landscaping. The "We Buy Houses" people would probably be willing to pay you about $110,000 (60% of $200,000 minus $10,000). They might begin with a somewhat lower offer.

If you've got the equity in your home and you're comfortable with those numbers, then that might be the way to go. However, you usually can get more selling conventionally. In the scenario above, maybe the home's on the market for $185,000. You could drop the price down to $160,000, likely sell quickly, and come out ahead of where you'd be with a "cash for homes" company.

I'd be tempted to reexamine my pricing and the home's appearance first and see whether correcting either or both of those would help.

Good luck.
1 vote Thank Flag Link Thu Nov 11, 2010
Don Tepper, Real Estate Pro in Burke, VA
LOWER THE PRICE. The home is obviously priced too high. Any "Cash for Homes" outfit will offer you far less than you can sell it for yourself.

Bite the bullet and lower the price substantially. The home will sell, and you will have this monkey off your back.

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
301-651-8600 - A few minutes ago
0 votes Thank Flag Link Tue Nov 16, 2010
Stick with a professional broker and listen to their advice. Different areas/neighborhoods and price ranges affect how quickly properties sell. Many people are having difficulting moving their homes.....and if the potential buyer for your home is trying to sell then your house is part of the domino effect.

Hang in there.

The Birshcbach Team
0 votes Thank Flag Link Tue Nov 16, 2010
A year and a half is a long time. The market is very segmented; meaning that the $80,000 market is different from the $400,000 housing market. So, a year and a half for the upper-end is not crazy. You might be surprised how many people actually want your home but have to sell their home first.
0 votes Thank Flag Link Thu Nov 11, 2010
Don Tepper pretty much nails it! Good, sound advice.
0 votes Thank Flag Link Thu Nov 11, 2010
Without knowing the details of your home it would be hard to advise you one way or the other. If you would like to send me the street address and more details I can better advise.
0 votes Thank Flag Link Thu Nov 11, 2010
It depends on what you owe on your home. They may not give you enough to cover your loan and closing expenses. I want to tell you not to blame your agent. Wisconsin real estate is hard. If the agent has done everything to market the property. You have staged your home to sell. Make sure you are priced the best in the area for what they can see out there. Have you had people in your home? What kind of feed back are you getting.? Talk with your agent.
Debby Homestead Realty
0 votes Thank Flag Link Thu Nov 11, 2010
If you're considering such an extreme service I would highly recommend just reducing the price with your current Realtor if you've been happy with their services (even if they haven't sold the house). This is a tough market we're in and price is everything. Have your agent do an updated CMA and see what's been selling around you and for what price.
0 votes Thank Flag Link Thu Nov 11, 2010
In general, when you sell to one of these companies/people, you are selling the home at a wholesale price. Obviously, they will want to resell the home for a profit so they would have to buy it accordingly. I would certainly be able to offer some other suggestions but would need more info. I would certainly be willing to talk with you more about your situation; I think getting another opinion could prove valuable for you.
0 votes Thank Flag Link Thu Nov 11, 2010
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