We get this question a lot. How do ‘we buy houses business works’?
This article addresses this question from the perspective of a buyer. In the next post, we’ll discuss the same idea from the standpoint of an investor. So if you’re planning to be a wholesaler or a rehabber, you can understand the process.
Coming back to this post, ‘we buy houses companies,’ purchase homes for cash. Most cash buying firms offer quick closing. You sell your home as-is and for a cash price. The question we get a lot is that what are the benefits of selling to a cash house buyer? Should you sell your home to a real estate cash buyer or through an agent? It’s also understood that a retail sale of the house yields you more compared to a direct sale.
Let’s discuss a scenario.
We recently visited a house that was in need of significant repairs. It was an outdated, vacant house. The 50-year-old lady wasn’t living in the house and was interested in getting rid of the house as soon as possible. For her, the vacant home was a problem that was costing her money. She had already received offers from investors on the property, and she was considering two of them.
One offer was from a new family in the town. They wanted to purchase the house if the kitchen was remodeled and if the curb appeal could be improved. New buyers were applying for an FHA loan with the 3.5% down payment. It’s no doubt that it’s hard to qualify for the FHA loan approval especially when your credit score is not 800+ and you don’t have a down payment of 20%. It might come as a surprise, but the lady was considering the offer from an investor. The perks of that offer included:
There are no inspection or appraisal contingencies. We don’t know whether the investor offer was accepted, but the difference between both proposals was of at least $10k.
Sometimes, convenience and timing matter more than the amount. If you need to sell your home fast or are in need of quick cash, then an investor can provide the solution required.
Should you sell a house in its top-notch condition to an investor?
You can certainly sell a house to an investor, but if you have a fully renovated home, it’s best to list the house with an agent. Real estate rehabbers are interested in redeveloping the house on their own. They provide a better selling mechanism if you have a home that requires repairs or renovations. Real estate investors also need to earn their minimum profit. An updated house doesn’t give them the profit margin, and you can also get a better deal if you sell your home in the retail market. If you have a beautiful house, get it listed on MLS and sell it in the retail market.
When you contact MJ Property Solutions, we’ll study your situation. If selling your home to us is in your best interest, we’ll let you know. We offer flexible solutions and will do our best to help you find a solution. We hope that our solution will make your life better so give us a chance. Contact us, even if you choose not to work with us. We can send you referrals to competent realtors in your area so that you can sell your house in the retail market.