We Buy Houses For Cash

When you’re searching for real estate resources, particularly on google, you’ll often see ads for an option like this.

On its face, it seems great.  But what does it mean?

Well, in theory, it means a buyer will offer you cash to give you a quick exit if you have to leave.  No mortgage, no drama.  Simple, right?

But as always, the devil is in the details.

These companies make money by cutting out brokers (saving 4 or 6 %), buying from seemingly desperate sellers, then flipping after some improvements at a huge profit.  So, they will offer $450K on a house that may otherwise go for $600.  Seller gets $450K, when they would have gotten $570K retail.  Then the buyer upgrades the bathroom and kitchen for $75K, and sells for $700K.  A nice $175K profit.

If you’re selling, when is this the right thing to do? Answer: rarely!

If you don’t care about how much you get for your home, this can be a good option.  If you read the story above and think: Awesome! I don’t need $100K, by all means click on one of these ads.

If you’ve had your home listed for months with one broker that doesn’t mean go this route.  Most likely, it means there was a market shift, or that your broker “bought” the listing by agreeing to list at an unrealistic price.

So, what to do? No harm in having the dialogue.  Find out what one of these companies would offer in cash.  Use that as a baseline to figure out where you should set your ask to maximize your ultimate sale price.

During this process, it’s also important to communicate effectively with your broker.  If you’re considering one of these companies, it likely means that convenience and speed are more important than the absolute highest price.  If this is true, TELL your broker.  That will change how we market your property, and how we communicate with other agents.

Information and communication are the key.

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