Home Selling in Pensacola>Question Details

Dee, Home Seller in Pensacola, FL

What advice can you give in dealing with investors (WeBuyUglyHouses) when you need to sale your home in hurry?

Asked by Dee, Pensacola, FL Thu Oct 18, 2007

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Price your home 10% under market to bring quick market attention to your property. Hire a great Realtor who will execute an aggressive marketing campagin to reach potential buyers directly and through their Buyer Brokers.

This will net you a higher amount than selling to the investors. Often, they offer less than 70%.

You can discount your price, pay Realtor fees, have professional guidance and representation, and still net more. The investors are representing their interests, not yours. When you hire a Realtor, he/she is looking out for your best interest.

Good Luck
2 votes Thank Flag Link Thu Oct 18, 2007
a realtor is not looking out for your best interest. they are looking out for their commission. you are better off working with an investor. you get cash money, no waiting period. no waiting for buyer financing, no commission for realtor. you get the cash, you give him the deed, done. no repairs, no headaches.
Flag Sun Dec 1, 2013
investor is best.
Flag Sun Dec 1, 2013
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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Dee

My advice is........ DO NOT SELL TO INVESTORS

Get yourself a Great Realtor, Price the home to sell. Create the fear of loss.

We Buy Ugly will only offer you about 70% of fair market value.

Actually they are in a little bind themselves, and are trying to unload all the houses they have been buying.

Now let`s say you hire a great experienced full service Realtor, and they get the place sold in 4 weeks.
I was gonna say 2.weeks.
You can sell a home in this market in your area. In 4 weeks.

Now per the Dept Of Misjustice you will be paying 6% to this Realtor for services rendered. plus we are going to price your home to sell. Let`s offer it at 14% below market value. SOLD!

6% + 14% = 20% - the 30% from We Buy Ugly, you the home owner walks away with an extra 10%.


Example if your home sells for $200,000. you will have an extra $20,000 you can fly to AZ and take me out to dinner.

Good Luck
2 votes Thank Flag Link Thu Oct 18, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
Dee
Investors are looking to purchase properties at wholesale. That means that in order to make a profit, they need (and are buying) properties at 10-20% below market. What does that mean? If they buy a home for 200,000, if they put in $5-$10K, which usually means paint and carpet (contrary to "Flip This House"), they can sell it for $240,000 or so and make a 5% - 10% profit.

That means that the houses are being sold in a condition that makes them worth less. They bring them up to snuff, and make a little.

The other major principle here is that time is money. In a "normal market", a home that is properly marketed will not be allowed to sell for less then market. If ten Realtors know that a home is on the market, and is a good deal, then they will tell their clients...somebody (probably more than one buyer) will try to buy it.)

In cases where a property is sold "direct", meaning it never hits the market, then whatever price is paid is probably not really "fair market value" since the market was never aware of the sale.

My short answer is if you need to sell, hire a good Realtor, price it and market it aggressively, and you will, by definition, find the "best buyer".

Good luck!
1 vote Thank Flag Link Thu Oct 18, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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I am not familiar with WeBuyUglyHouses or other outfit like that.

However, if you do decide to work with investors and you will be selling the house dirt cheap due to the urgency to sell, you will want to make sure you you have a realtor or a lawyer review the contract, sell the house 'As Is', make the inspection periods very short, if any, and preferably get cash - if they are getting all that, you had better have something in return.

A better idea is to take the great advise from the agents below - hire a great Realtor, get your house in great shape to sell, price your house very competitively (low) and ask your realtor to do an all out marketing campaign for your house; and sell!

Sylvia
1 vote Thank Flag Link Thu Oct 18, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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Hello Dee,
Here's the deal. Any investor out there will buy your house 50-75% under 'REAL' market price. Given the odds, they will pick up a property, now and then for dirt cheap price. There are a specific set of criteria that you need to be aware of. Don't fall for the scam. There is a reason why Realtors have a license and investors don't.
We can talk about this. Contact me.

Mona
1 vote Thank Flag Link Thu Oct 18, 2007
The key words in your question are "in a hurry". And if you are truly in a hurry, and don't want a hassle, then selling your home to an investor could be fine. Realtors (in the long run) don't care how long your home is on the market, whereas an investor who wants to buy your house will complete the transaction in the amount of time you both agree upon in the contract. If you get a price that is worth it to you, then selling to an investor is actually a win-win situation if time is of the essence. Even if a realtor finds you a buyer, doesn't it usually take at least 60 days to close? If not in a hurry, then obviously, sure, sell it through a realtor to get more money. I wonder what you ended up doing...
0 votes Thank Flag Link Tue Apr 14, 2009
Decide how much of a discount you're willing (and able) to accept, and how soon you really need to sell your house.

Here's how investors work: First they determine the ARV (after repair value) of the property. Then they discount it to 65%-70% of that number. Then they subtract their repair costs. The final number is the most they will pay for the house. They'll begin by offering less.

For example, let's say your home, in fixed-up condition, would be worth $500,000. They'll discount that to about $350,000. Then let's say your home needs $10,000 in repairs. They'll subtract the $10,000 from the $350,000. So $340,000 would be the most they'd pay. They might begin by offering $299,000. Or $314,000. Or something similar.

Despite the comments below, it's not a scam. Most of the companies, including the one mentioned above (a franchise) do what they promise. They actually buy the houses, typically in 10-14 days.

Now, is it a good deal? Sometimes yes. Often, no. Let's go back to that example above. The house would be worth $500,000 after $10,000 in repairs. An agent might often list the property for, say, $475,000. But then you have the situation of 60 days, 90 days, or more on market. But the agent could put it on the market for $425,000 and market the heck out of it. It'd probably sell pretty quickly for close to the listing price. If it did. Even with the transaction costs (full commission, a bit of negotiating, etc.), you'd net $390,000, more or less. And that'd be more than the MAO (maximum allowable offer) from an investor of $340,000.

Still, what an investor offers you is the assurance of a quick sale. And they're buying in "as is" condition--no hassles about the roof leak or repairing the driveway. Those costs are already factored into their offer.

Hope that helps.
0 votes Thank Flag Link Mon Jul 28, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Hello,

Put your house on the market for sale with a realtor, you'll get more money for it.
Web Reference: http://suekeenan.com
0 votes Thank Flag Link Mon Jul 28, 2008
Hi Dee, I would first have the home appraised and ask 3 different Realtors for what they think the home would sell for. Armed with this knowledge, then you can approach the investor for negotiation.
0 votes Thank Flag Link Thu Oct 18, 2007
Typically these companies purchase homes at much less than market value. If you list your home with a Realtor at market value (or slightly less) it will sell and for more money. While I would advise you explore both options, if you choose to go the investor route you should make sure everything is reduced to a written contract that you have reviewed by a Real Estate attorney.
0 votes Thank Flag Link Thu Oct 18, 2007
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