Let’s talk about what the deal is with those “We Pay Cash for Houses” signs. You’ve probably seen them around town, even if you’ve never given them much thought.
The people who post these signs are people who target a certain type of home seller: people who are in financial stress, who can’t sell, are getting divorced, maybe have a damaged home they don’t want to deal with, or owners who are evicting tenants.
They’re hoping that these types of people will give them a call so they can come in and give them a very lowball offer the house. They often don’t pay real estate commissions, and will boast about how they process their sales.
How do they do it? Typically, we refer to them as EPs (equity purchase companies). These fast-cash buyers often deal solely with your equity position. Their strategy is to get cash-for-home companies to negotiate the lowest possible price for your home using your equity, after which they’ll flip it and liquify it to somebody else who will go in and do the rehab.
A lot of times, these buyers may or may not be in your best interest. You have to be aware of the financial position that you’re in. These companies are designed to take over a bad situation, usually not for a conventional home that’s in good shape.
If you truly aren’t desperate, you need to stick with a brokerage that will get you the most money for your house so that you can take advantage of that equity.
Regardless, we’re happy to come out and take a look at your house and give you an honest opinion. If you want, we can even do a cash purchase as well. Typically, we beat those guys because we know exactly what the market is able to bear. So we can do the work ourselves and get it sold for you and maximize your outcome.
If you’re thinking of buying or selling a home, call or email us today for a free real estate consultation. Have a great day.