Some companies will actually buy your house, and then take on the hassle of preparing and marketing the home. And they'll pocket the difference. Others have a posse of investors set to buy houses. Or, maybe you're getting the old fashioned letters in the mail from folks who either have a buyer, or offering to buy your home, in an easy, quick, no hassles transaction.
There are times, and situations, where prepping and marketing a property is indeed too much of a hassle, and for extenuating reasons, owners just need to get the house sold and move on. I had a client a few years back, who, through a job transfer, had two weeks to show up in another state, at work. They'd found a place to buy in their destination city. But here in Portland, had a VERY busy household, with a few boys, several pets and lots of unfinished projects. Getting the place sold quickly was the goal. Once I educated them to how much they might be leaving on the table, and was sure they wanted to for go the hassle, I was able to connect them to a cash buyer, and get their home sold, as is (without all that prep work) and quickly. You don't have to forgo representation to have a quick, easy transaction.
Of course most sellers want top dollar for their property, but that does come at a cost. Getting and keeping your home show ready, scheduling showings around your family coming and goings, and not having a date certain, nor an amount certain for an offer can be stressful. There is nothing wrong with prioritizing quick, easy and known dollar amounts and timeliness over the most money...as long as you have an idea of how much money you are forgoing. And as long as the "easy button" really is as easy as it sounds.
In general, folks making these instant offers are very astute buyers. Many have access to lots of capital, and big data to help them make their buying decisions. No offense, but most certainly, they know way more than you do. And, most of these instant offers don't provide for you, the homeowner, having your own representation in the transaction. Don't worry your pretty little head, they'll take care of everything.
But sometimes, these offers are crazy low, as in criminally low. We just got one on our house. The sender obviously doesn't know I am a real estate agent. The offer to buy is for $300,000, all cash at closing or the proceeds from private financing. Note. This is not an actual cash offer. They don't have the cash on hand, and will be getting some kind of financing, it just may not involve an appraisal on the property. But back to the price. Zillow thinks our house is worth $655,998, and Multnomah County shows the market value at $609,440. This offer is WAY off. Other terms of the offer include a 60 day closing, and no realtor fees. No realtor fees also means the seller would be selling to very astute buyers, with no representation themselves.
This "offer" came with a letter of intent, which if signed, commits the seller to working with these folks for 60 days. That is that the seller, " will not directly or indirectly, solicit, entertain, discuss or accept any offers in connection with or enter into any agreements with respect to the sale, or other conveyance of any interest in the Property with any person or entity other than buyer". Wow. So if I got all excited and signed this letter, to "see where it goes", I'd be stuck with these folks for 60 days. Oh, and the paperwork also says..."we hope you consider us as a trustworthy resource to obtain fair and flexible terms for a clean and straightforward transaction," I'm not sure offering 50% of value is fair or trustworthy.
Please please please, if you are wanting to avoid the hassle of selling and just want a quick easy deal, don't sign this stuff right away. Take time to do some research, ask a realtor. For heavens sake, at least look at County's opinion of market value and zillow. I don't love zillow, but they're at least an independent data point!
Yes, I get the attraction of an easy sale, but sure don't think its worth $300,000! I worry about less astute owners, especially the elderly, who could really lose out. Oh, and when I do some digging on with the Construction Contractor's Board of the underlying developer, I do find some complaints filed. hmm
If you are approached about an instant offer, and want a reality check, please get in touch. I'd be glad to give you a market analysis so you can compare. But, get in touch before signing anything! leslievjones@gmail.com 503-312-8038
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