You need to sell your house fast to the “we buy houses” investors and want to know how the process works. Investors market to a small niche of people who are struggling to find a way out of their house. These sellers don’t mind losing 25-45% of their equity in a house to avoid realtor fee’s and costly repairs. These types of repairs are necessary to get the property ready for the market. As a result, these types of sellers usually take into consideration time and money lost while the property is on the market (typically 90+ days to close). For example, some costs may be realtor fee’s, thousands on repairs, and stress. In the end they find that selling quickly to cash home buyers is less stressful and the overall best approach for them. The question is, what do you need to do to get your house sold quickly?
After you’ve got an interested investor on the phone, they may ask you a variety of questions. They’ll do this to pre-qualify whether or not selling a house cash is even an option for the seller. During the call, they also want to know if selling your house for cash is a good fit for you. Pre-qualifying questions typically sound like: What is the property address (to view comparable prices and formulate an offer), are there any taxes, liens or mortgage on the property (they can’t make an offer that is less than the mortgage, and they do not typically pay taxes or liens.), and how much repairs are needed?
Experts in the “We Buy Houses” industry, will typically use the address provided to gather information to formulate an offer. For instance, they will compare the prices of houses within the area of said-property to yours. The properties they compared are typically the same square footage and number of bed/baths. At this point, the experts in the we buy houses business should have explained how it works after taking your address.
After the investor has taken a look at the property online, they will give you a call with an offer ready in hand within 1-48 hours. The offers that are given are not always set in stone. Assuming all of the information that you gave is correct, this number should typically stay the same, but otherwise, it may change if there are drastic differences. Additionally, these offers that are given are no obligation offers and can typically range from 65%-75% of market value. This means that you 100% have the right to decline or counter the offer. Getting an offer is free and investors typically do not charge for them.
The purchase and sales agreement simply sets everything in stone. The investor should at that point explain how it works and why you are signing it. If not, the process usually goes like this: The investor will either send you an electronic purchase and sales agreement or drop by the house to have a look and bring along a hard copy of the agreement. This agreement gives the expert in the “We Buy Houses” business 30 days to close on the property. Along with the purchase and sales agreement, any amount of money makes the deal official. Most investors will typically put down an earnest money deposit of $10-$100. This is because tying up large amounts of capital simply isn’t efficient in the we-buy-houses business, and not because they can’t afford it.
Within the next 30 days given to close, the investor may bring over contractors to view the property for inspection. This is simply to assess the property to evaluate the investors costs for repairs in depth. The seller shouldn’t be concerned though…the contract is now set in stone, and the buyer doesn’t have the right to change the amount until after the 30 day period. Investors will typically ask for a pair of keys to access the property. If the property is occupied, the buyer will typically make arrangements to stop by with the seller to gain access.
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