Home Selling in Durham>Question Details

Sat-seller, Home Seller in 27707

I'm selling my house as a FSBO, and received email about a cash offer from a company that appears to do some

Asked by Sat-seller, 27707 Tue Feb 3, 2009

house-flipping. I've done a lot of upgrades on the property and don't think it quite fits the profile of a flip, and the random We'll give you cash for something we've never seen! makes me a bit leery. Is this a good option to consider, or something I should leave alone?

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Usually companies that purchase homes with the strategy are looking for sellers who need to dump the home or sell quick for various reasons.

I personally would steer clear of this offer if I had a home that will sell on its own. You know what you want to sell for...if they won't pay that, it's no different than saying NO to another type of buyer.
1 vote Thank Flag Link Tue Feb 3, 2009
As a rule of thumb, they will pay 70% of the value of your home. Sometimes they do minor work on the home, sometimes none at all, then they put it on the MLS. If you'd rather take the 30% reduction on your purchase price than try to sell it on your own to a buyer/list it on the MLS, this is a good option.

I know someone who recently went this route, and was overpaid by the company, who felt the home was worth more than it was. The house is still on the MLS, and she is happily in her new home. You could always talk to them to get their figure. As a flipper, you probably have a good idea of what your home is worth. One word of warning, if you go this route, DO NOT allow them to market your home during the contract period, but before the closing. This has become somewhat common in this area, where they try to find a buyer at the higher price during the closing process, and if they don't they cancel the contract.

Good luck finding a great buyer!

1 vote Thank Flag Link Tue Feb 3, 2009
Investigate all your options. There are many seasoned veterans who search for FSBO take advantage of seller. State requires all sellers follow statues when selling a property, if you dont could be sued. Many of these cash offers are approx. 30% or more below market value, no investors will purchase a home unless there is equity. GREAT QUESTION, just be cautious.
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Tue Feb 3, 2009
Hi Sat-seller
If you had an agent to negotiate with them I would maybe consider, listening to what they have to say, but as you probably are not as experienced in the whole process, I would probably leave them alone and wait to find a buyer the conventional way.
Web Reference: http://www.colvinm.hpw.com
1 vote Thank Flag Link Tue Feb 3, 2009
And thanks to Lynn and Michael as well, and anyone else who sneaks in while I type. :) Yes, I'm pretty inexperienced at this, and greatly appreciate the quick and friendly answers. I did a few searches and was surprised to not find much on this topic - I can't imagine it's a new phenomenon!
0 votes Thank Flag Link Tue Feb 3, 2009
Thanks, Erica! Just what I was hoping to hear.
0 votes Thank Flag Link Tue Feb 3, 2009
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