I have noticed recently more and more “Buy it now”, “Why hassle with a Real Estate Agent” groups advertising to buy your home. That got me wondering. Are the “Buy it Now” companies worth it? So, I went to the real numbers to see how selling the “No Hassle” way affects your bottom line. The results are astonishing…assuming you like your money.
Below is a selection of recently closed homes that 2 of these companies have closed in the past few weeks. This is not the price they gave the owner to purchase the homes, this is what they sold the property for after acquiring it. Names of the companies and the sellers have been redacted for privacy.
In the chart below:
“Original Seller” is the party that sold their home the easy way, direct to the investment company.
“New owner” would be the party that purchased the home from the company. Take a close look at the amount of money lost by the original homeowner by not selling the home traditionally with, perhaps, a few cosmetic updates. 10’s of thousands of dollars that could have been in their pocket.
Now, I understand that there are some cases where a quick sale could be desirable to a seller. Perhaps the home came in a deed of survivorship, perhaps it was a financial emergency, or a new job out of state that requires a quick sale. I get it. There is room for these types of deals. However, I don’t know if the seller is given the whole picture prior to signing one of these deals.
First. What is your home actually worth in it’s current condition? In many cases, more than what you will receive in one of these types of transactions.
Another question that is likely not addressed is, what would it cost to update the home cosmetically, and how would that transfer to the overall sale price? Chances are, the basic “Beauty Update” would be more affordable than most think, and could translate into a higher sales price. A sale that would not only get your investment back, but add additional profit resulting in more money in your pocket.
These companies are in the business of making money, that is the American Way. No complaints about them for finding opportunity and earning from it. However, they tend to do, in most cases, only simple cosmetic updates after they purchase a home, and the resulting profit for them…well…see below. $7,000 to $20,000 in just this small sampling. (Less expenses)
I have one simple ask for you. Before selling your home in this manner, let me come in and give suggestions as to what it would take to freshen your home, and what the potential sale price could be with a small up front investment.
With a little patience and elbow grease I can help you put that $7,000 to $20,000 in your pocket…where it belongs.
Call me, refer me to your friends and family. I always have time for you. (602) 818-6065.