Home Selling in Madison>Question Details

Laud, Other/Just Looking in Fitchburg, WI

"We Buy Your House For Cash" Is this a good way to sell my house?

Asked by Laud, Fitchburg, WI Wed May 26, 2010

I see the signs nailed up on telephone poles and stuck in the ground by the side of the road. Seems easy, no realtors to worry about. How does this really work?

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8
If i was you i would shy away from the option you mention.
If we were to meet i would ask why you are in this situation. I would not give advice with out knowing the reason. Different situations could have different answers.
Here is the deal.
The investor represents himself not you. This presents a conflict of interest. You will likely get 60--70%, if you know the value, if you do not you may get less.
You talk as if a Realtor is to be avoided, when actually they will work in your best interests to get you the best deal.
You also know with a Realtor that they are motivated to get you as much money as possible.
What our team knows is that if we place a well priced home on the market it will sell quickly, probably for 90% of value. Take off the Realtors cut and you still look to be better off.
So the question is would you want 70% or 85%?

Just get a good Realtor-preferably a team- not all are equal. and if you are underwater with the loan read our short sale info on the link below.
0 votes Thank Flag Link Thu May 27, 2010
The wat the formula works for an investor to buy a property is ---- Fair market value less repairs less 30%= max price. For example 100,000 fair market. Repairs --- 3000.00 paint, 3000 carpet, 15000 update kitchen, 2000 landscaping . Now you have a value of 77,000 less margin of 30%for holding costs on property and profit makes an offer of 54,000.00.
The advantage is you are off the property quickly and do not have to do any updating or worry about showing the property.
0 votes Thank Flag Link Thu May 27, 2010
Probably not - it is highly likely that the offer to buy in cash will be at a steep discount to market value. Your goal is to get the best possible price for your home and the way to do that is to price it right and maximize your exposure to reach the most buyers possible. The way to accomplish both is to work with a very good - and full time - local agent that has the knowledge, analytical & negotiating skills, and internet savvy to get the job done. Paying commission for fine service will be a pleasure for you - so find a great agent so you get that level of service. It will more than pay for itself.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Thu May 27, 2010
I would exhaust all your options prior to this "buy-out" option. It is not going to give you a great payout. You can list it with a Realtor, Flat-fee, Auction, or For Sale by Owner. In my opinion this is a hook to get your listing and is not a solution that most sellers will take. Depending on your situation, each and any of these options are viable.
Web Reference: http://www.669sold.com
0 votes Thank Flag Link Wed May 26, 2010
I agree with all of the answers. But, the real answer is to find a Realtor who will work with you to get the highest price in the shortest amount of time. One that has integrity, has your best interest at heart and understands the current real estate market. The market has been very challenging for sellers for about the last 3 years. If you home is not listed, I would suggest finding an agent who will be honest and upfront with you regarding price. I would love to interview for the position, if you are currently not listed, but are thinking about it. I have been in Real Estate for 7 years and been a top sales agent in my market center each of those 7 years. I love my job .Feel free to call me at 608-235-431 or email judybraund@kw.com with any questions you may have, no strings attached.
0 votes Thank Flag Link Wed May 26, 2010
Keep in mind that you MUST be motivated to sell to an investor. Otherwise you have no reason to accept less than fair market value (retail price). Also keep in mind that an investor will usually close the sale within a week while listing with an agent will seldom produce such a timely closing. You will have to determine what is more important...a quick sale or the "potential" for a higher net. Investors are competing for properties too, so you won't likely have to take less than 70% to 75% of current market value and the investor will generally pick up all your closing costs too.
0 votes Thank Flag Link Wed May 26, 2010
I am familiar with sales that have ranged from 50% - 70% of fair market value as established by comps. If someone needs to sell, and selling at a discount is worth it.....then it is the right decision for that person.

An alternative might be to list w/ a Realtor at 15% less than fair market value. If the property is aggressively marketed and you receive multiple offers, the market could push the selling price up. In order to get the maximum market exposure, list the property with a Realtor in order to tap in that segment of the market.

Ultimately, the right decision will be different for different people.
0 votes Thank Flag Link Wed May 26, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
As long as you're not planning on getting retail price for your home, this may be a good way to sell. Investors typically pay approx. 70% of a home's market value when paying cash, or slightly more if the seller is offering to sell on terms (lease purchase, owner finance, etc.) and less if the home needs lots of repairs.
0 votes Thank Flag Link Wed May 26, 2010
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