There are a plethora of home buying companies across the country that advertise that they want to buy homes “as is” plus they can pay cash and close much faster than a conventional buyer. So why would you want to contact one of these companies in your area if you have a challenging home to sell? Also, isn’t it true that those types of companies just want to try to rip you off? These are two very important questions that I am sure you have asked yourself if you have a fixer type home to sell that may not be the best fit for the retail market in its current condition. In the rest of this article, I’ll address these important questions and more to help you better understand why these “We Buy Homes” companies exist and how you can use the services they provide in your area.

If you find yourself in a situation where you need to sell a home that needs a major update and/or some renovation and repair, you can be sure that the traditional way of selling a home is going to be a bumpy ride for you. When people have a “nice house” to sell, they typically call their local real estate agent, ask them to submit a listing price that is supported by comparable properties, and list the house for sale on the RMLS Realtor Network. The hope is that other real estate agents will see the property and have a buyer for it, then shortly thereafter you will be presented with an acceptable offer on the property and you will be on your way to a smooth closing. Although no real estate sale is that easy these days, that’s the general process for homes that don’t need a major update or repair.

If you’re selling a home that needs a minor fix and update for a major renovation and repair, you can expect a bumpy sales process if you plan to go the traditional route just outlined. The first reason is because most people will always contact one or two real estate agents in the initial stages of trying to sell a property… and in this type of case is where the first misstep can occur. The problem with homes that need a major update and repair (besides the obvious) is that real estate agents usually have no idea what they’re really worth, so they often throw out a number that sounds great in theory but will never quite hit. to good term. I like to call this buying the listing and some realtors will do it intentionally to help secure a future paycheck while others will do it out of sheer ignorance because they just don’t know any better. The second major pitfall you will face on this route is that you are at great risk of having multiple failed sales. This is because your home will be on show for all the inexperienced rehabbers in your market to bid, and after they’ve wasted 10-15 days of their time, most will eventually realize they’re paying too much for it. the house and back out of the deal. My home buying company buys a number of homes each year from disgruntled sellers who have been greatly irritated by the listing process, having multiple failed sales, and ultimately selling at a much lower price. Don’t get me wrong, there are plenty of homes that should be trading at higher prices and will eventually sell close to that, but if you know your home is in need of a major renovation and repair, you may want to think twice. List the property with a real estate agent if you want to see it sell at any time in the near future.

So what is your alternative you ask? Well, that’s where the “We Buy Houses” companies come in. You’ll see that some of those companies are experienced real estate rehabbers who have a very educated eye when it comes to buying homes that need a major renovation and repair. So now think about the process I outlined above and compare it to getting a cash offer with a quick close from a polite person who will absolutely honor the contract and close the deal on time. Now, you may not always like the cash price that some of these companies will offer if you have already talked to a real estate agent, but you have to remember that the property is only worth what it will sell for and not what a broker real estate or Zillow think it is. to worth. When people buy houses that need a major renovation and repair, they are essentially risking paying you to take on a major project. So, in exchange for that risk and the work that goes with it, there must be a reward; otherwise, no one would ever buy houses that need fixing. To make it very simple to understand, no one is going to buy a house for $150,000 that needs $50,000 in repairs to be worth $200,000 later. They may be looking to buy the property for anywhere from $100,000 to $120,000, but probably not more than that, and if they are looking to buy it for more, you can be pretty sure the sale will fall through at some point. This is one of the main reasons why some people believe that “We Buy Homes” companies are just trying to scam you, when in fact they are just trying to buy your property at a price that will adequately compensate them for all the risk and effort they put into it. they will put on it.

So how do you know which “We Buy Homes” company to call for the best deal? This is a great question and I’m sure you’ve asked yourself this at some point. Be sure to do some research on the company ahead of time to see if they have a website, personalized phone number, and anything else that makes them seem like they’re running a really organized business. Also be sure to ask if you can see photos of some of the previous renovation projects, that way you know you’re dealing with an actual rehabber and not just a real estate wholesaler who will be looking to sell the property to a rehabber for a profit. . For my home buying company, we create a comprehensive website that shows all of our renovation projects, and I always share it with all the sellers we meet with so they can check it out and see what we’re capable of. If you can find a quality “We Buy Homes” company in your area, I highly suggest selling your repair property to them if you feel the price they are offering you is fair based on the amount of repairs needed. Just remember that there will need to be a profit in the deal for whoever buys your property, otherwise it will simply sit on the market until the price drops to a point where it makes sense to take the risk of buying it. I hope you enjoyed this article and found the information helpful when trying to sell a home in need of renovation and repair.