Have you ever seen a sign that offers to buy your house for cash? Ever wondered why anyone would make such an offer sight unseen? The answer is because they will likely be your only buyer at that point.
Buyers offering cash are targeting homeowners facing a deadline. Time is short. Perhaps the lender is going to foreclose. Perhaps the seller can’t afford the repairs needed to get fair market value. Perhaps the seller needs to liquidate in a hurry. These and many other factors all come into play in these transactions. The sellers are targeted by either 1) Inviting them to get in touch (You’ve probably seen handwritten roadside signs that offer to buy homes for cash) or 2) sending letters or even coming to your door to offer to buy your home. How do they know which doors to knock on? Your mortgage information is a public record. All they have to do is look-up your record to see if you fit their profile.
Typically, the offer starts with the pitch that currently homes are selling at $xxx,xxx in the neighborhood. Then they bring up the advantage of not having to deal with realtors, paperwork, inspectors or people coming through your home. Finally they do a walk-through pointing out every shortcoming of the home and what it will cost to fix this.
Amazingly, once all of this is discounted from the market value of the home, the proceeds allow you to payoff your lender(s) and, if you are lucky, have just enough to pay for the moving truck. If you ask where did all your equity go, every short-coming is restated and you are reminded that there will be fees and commissions if you list your home with a realtor. If this is not enough, you are reminded that selling to the cash buyer will allow you to by-pass the need for repairs, not to mention the long wait to sell the home. If your lender is threatening to foreclose, the cash buyer will point out that you stand to lose everything and still have moving expense.
While there is a grain of truth to all these arguments, the reality is a realtor working for you will advise you on how to determine which repairs are necessary and which ones can be worked around. If your lender is looking to foreclose, the realtor can work something out with the lender such that foreclosure can be avoided while you list and sell your home. If the market is declining, the realtor can even work with the lender to have them accept less than what is owed on the mortgage. Yes, there will be commissions and fees but these will also be taken care of by the lender.
Being certified in Short Sales and Foreclosures (SFR), I can help you avoid being stampeded into a sale. We can work through all your options and then implement the one most beneficial to you. Contact me at 760 622 5087 or email@example.com for a private, no obligation consultation.