Monday, September 16, 2019 / by Andy Mandel
We used to see signs on the side of the road that said, “We Buy Ugly Houses,” and I’m sure you’ve seen them, too.
Instant cash offers from companies like Zillow, Offerpad, and the rest are really just the 21st-century version of those signs on the road.
These companies will look at your house and think about what they’d need to do to turn a profit; either they’d fix it up and resell it, or they do some repairs and then rent it out to tenants. To these companies, your property is an investment and it would have to hit a certain investment threshold for them to make a profit.
From what I can tell, these deals work best for someone who needs to sell their home and move quickly—within one or two weeks. The people who sell to these companies can’t do much else with the house; they don’t have any money to invest in the house, and it’s usually not in the best shape.
If you’re one of these types of sellers, then these instant cash offers are probably one of the best routes you can take. You won’t have to do anything yourself—they’ll come in and do everything for you.
However, you do need to realize that they’re going to make a profit from the property you’re selling. If your house needs $50,000 worth of work, they often come in and offer you $75,000 to $80,000 less than what the true market value would be, and depending on the company, they might also charge you an extra convenience fee between 6% and 10%.
So ultimately, instant cash offers are great for those who don’t really care about getting top dollar for their homes. In my experience, we meet with more than 100 sellers every year to discuss selling their house, and most of my sellers’ No. 1 priority is to maximize their values so they can go on to buy their next house.
If you’re looking to make the most from your home sale and you aren’t pressed for time to move, our team is proven to be able to get you much more money. A small investment in certain things here and there (if you have the means) can help you get a lot more when you sell. We also have investors on our team lined up who can make you an offer on your home, much like the instant cash offer companies I mentioned.
So if you’re thinking about selling your house and aren't sure which is the best route for you, reach out to us. We’d love to give you a hassle-free, no-obligation consultation to help you figure out what move will be right for your situation.