I think that it’s safe to say that swimming pools are not on everyone’s “must have list”. If that is the case, then swimming pools that need a lot of work are not on anyone’s list, and this blog post and video are dedicated to homeowners that have both.
Most people would agree that real estate investing in Sacramento has its inherent share of risk and that buying houses without inspections will increase that risk dramatically. So why would I make a video and post an article about doing just that?
An elaborate Marketing scheme, maybe? A Gimmick, not so much? Experience? Absolutely.
With over 10 years and literally hundreds of houses I have seen a lot of problem houses. That adds up to a lot experience and with that comes a certain degree of confidence when buying, rehabbing and selling properties that are in various stages of disrepair. There is a fallacy in the notion that anyone can inspect a problem and find the root cause without first digging in. So I approach each house knowing that I have to expect problems.
With one house it may be plumbing and electrical issues, the next it may be HVAC. I am not a house savant, but I can make educated guesses based on experience and I am used to taking those risks. I have seen and paid for so many unusual house issues that I have become a specialist and I understand the risk. I can say that we have paid for the rehab of many pools and what I have come to understand is that, they are just like any other repair… they cost time and money.
Most homeowners, that have a house with a pool like the one in the video, don’t have either and that creates an opportunity for me to solve a problem.
Hand in hand with the notion that every house has a buyer, is the reality that at some point the age, condition and location of the house has to be taken into consideration. I say it all of the time… “not all houses are created equal” and the ones that have suffered through years of deferred maintenance are especially vulnerable when it comes time to sell. In fact, the greatest fear of any seller is that their house will fail multiple inspections uncovering thousands of dollars in needed repairs and kill any hope of the sale of the house.
I can assure you that there is always a solution and there is always a value. the trick with some houses is finding the balance and the equity.
So Who Can Help?
Real estate agents are not that adept at being able to advise sellers when the house needs a lot of work and in fact they are just another layer of cost without offering any real value if and when the house actually sells. Sure they can shuffle paperwork and file enough disclosures to protect themselves, but the truth is, if your house needs a lot of work and suffers from deferred maintenance and neglect, you need a cash home buyer in Sacramento.
Cash Home Buyers are Best Positioned to Offer Help?
My name is Peter Westbrook and I am a real estate investor in Sacramento, Stockton, in Modesto CA. As one of the leading we buy houses Sacramento companies, I remember almost every one of the phone calls that I receive from homeowners that said that they need to sell my house in Sacramento.
Maybe it’s that each situation is a little different in terms of the need and the priority and yet they all share the same characteristics regarding the aspiration’s for the outcome. Sellers have universal axioms when it come to selling their houses and look for people that can speak to that need in a timely and professional fashion.
Unfortunately, the whole of the real estate industry is not geared to unconditionally sell your house quickly regardless of its age, location or condition. Remember, real estate agents do NOT buy houses. They list them and their objective is to have as many people see that listing as quickly as possible because the longer it takes for them to find someone that wants the house, the more frustrated and unhappy you become.
The More Problems a House has the Less Likely it is to Sell
What that really means is that with every new requirement that a potential buyer needs, like a home inspection, or an appraisal it is another decision that the buyer or their lender needs to make which is potentially a deal killer.
That is why Sellers are on pins and needles every time there is an inspection or an appraisal because they know that today may be the day that the buyer, the lender or both may say no.
I don’t think there’s a homeowner in the world that believes that a house with significant problems is going to get the same price as the prettiest house on the block. And that’s where my company comes in. We buy houses in Sacramento, Stockton and Modesto in any condition. We pay cash and we don’t order inspections or appraisals.
So back to the articles purpose. In all of those phone calls with all of those homeowners that I have talked to, I think it’s pretty much universal goal that most homeowners have, to sell their houses and relieve themselves of the pain their suffering that the houses are causing. Most people don’t realize the grip that house can have on them emotionally and financially.
In the video below and my article I wanted to capture , at least visually what both sellers and buyers recognize when they walk into a house. There are very few sellers that are blind to the problems that exist in their homes. Sure, they can live there day to day and become accustomed to walking by them with a blind eye. But, I don’t think there’s one homeowner in the world that believes an inspection of their house isn’t going to turn up the problems that they already aware of. I think the biggest fear is that they’re going find more and confirm the homeowners belief that they just can’t sell their house.
But what if you could sell that house for cash without the inspections without any requirement to fix anything without any requirement for that homeowner to clean up anything and just walk out with as much equity as they can?
The best option for any homeowner with a house that has significant deferred maintenance and other issues and problems is to look for a cash home buyer directly that will pay cash and not require any inspections whatsoever. Sure, it may take a couple of Google searches, but if you are reading this, then you just found one.
It’s Usually a Money Issue?
For more than 90% of the houses with deferred maintenance issues, they are directly related to a financial resources the homeowner has available. Most homes suffer deferred maintenance over time. Some experience it all at once and others are inherited by a child of an elderly mother and father.
Whatever the reason, those issues are always costly, but it doesn’t mean that homeowners shouldn’t expect to be able to put the most amount of equity back in their pocket when their house does sell. It also doesn’t mean that potential buyers aren’t going to want to investigate and perform their own due diligence to make sure the condition of the house merits the price and has the value that the owner wants.
Our formula is Fair market value, minus repairs, minus some holding cost.
The free market is a wonderful place for that to happen. There is something healthy about multiple buyers competing, but sellers need to be aware that unless the location or use of the property can change along with the potential use, it’s value is not going to increase.
Sellers need to understand that any houses value is what someone else will pay for it and the seller should have a reasonable expectation that the new buyer will want to have those things checked out so they understand completely how much is going to cost to fix or replace.
It is also understandable that sellers, regardless of their financial resources want to spend as little as they possibly can to get their houses into the condition that will attract the highest possible dollar amount in a sale to return the most equity in their pockets.
I think It’s a reasonable expectation, but only if the homeowner also understands what the values of houses are throughout the neighborhood and understands that what a house sold for across the street may not be a realistic bench mark for every other house on the block.
The truth is so matter how similar houses , each house is unique and has its own story to tell.
Sometimes the only Solution is to Sell the House.
Houses come in all shapes and sizes with different kinds of issues that determine its actual condition. Buyers are skittish and if they perceive a problem, they walk. Real Estate Agents are no different and they have vastly different levels of experience with different types of houses. The truth is that most real estate agents have no experience in selling distressed houses at all and their abysmal performance in selling them is obvious.
Here is another fact… Unless your house is in move-in, near-perfect condition and is priced right, the average buyer is going to pass. The truth of the matter is 95% of all buyers are looking to buy houses that are move-in ready, that need no repairs or updates, which is also evidenced by the fact that over 98% of all buyers order home inspections and expect the seller to pay for the repairs.
If you have a house with any problems whatsoever, what are the chances that you are really going to pull a fast one on the buyer, the inspectors, and finally the bank?
So in a world where buyers are looking for move in ready and sellers are looking to cash out, the only thing that they have in common is a real estate agent that is trying the best they can to match things up and as the above statistics point out, it works only 60% of the time.
Peter Westbrook: Hello, everyone. Peter Westbrook here with Westbrook Real Estate Investments. I’m going to show you a backyard and one of the challenges of buying houses. I want you to know if you have a pool and it looks anything like this and it’s with the house, it’s an inspection nightmare. This pool needs actually to be resurfaced. No matter how much you try and scrub this, it is going to always be yellow and green and and brown and lovely. This pool was not used for a few years and we’re going to need to come in and resurface this. We are in the process of remodeling the house itself, you can see.
Anyway, my name is Peter Westbrook with Westbrook Real Estate Investments. If you have a house that has a pool and you want to sell your house, but you’re afraid of what’s going to happen with that, give me a call, 209-481-7780, or visit my website at www.ibuyhousesstockton.com or www.webuyhousessacramento.org. I’ll talk to you personally. We’ll schedule an appointment and see what we can do with your house. Again, thanks for watching.