For many homeowners, working with a Sacramento Home Buyer is the best answer to “sell my house fast in Sacramento“! Sometimes you just need to think outside of the box and ask yourself the difficult questions about what you want to accomplish. Those questions should be grounded in reality. Sometimes those questions have nothing to do with the market, but have to do with the condition of your house that will dictate the type of buyer and price that you can expect in an offer. Most sellers already know that there is no real magic formula in selling a house that needs work, but what they dont know is that selling any house gets a whole lot easier if you just target the right buyers. It is really that simple!
I know, you are already thinking, but wait, “that is what real estate agents are for”, but it really isn’t always the answer. A real estate agent maybe just part of the equation even if you truly believe that that is the only answer. Don’t get me wrong, selling with a real estate agent may be a good choice if your house is in great shape and competes with the top 50% of the market. But what if your house isn’t really positioned all that well? What if your house is in poor condition and barely competes with the bottom 25% of the market? Then what? Are you willing to pay a real estate agent an additional 6% more of your equity just so they can pick up the phone and call me? If you are reading this article and you need to sell your house in Sacramento, cut to the chase. Pick up the phone and call me at (209)481-7780 and get an all cash offer today.
What Do Most Homeowners of Ugly and Run Down Houses Want to Accomplish?
Most owners of distressed houses just want to sell their house fast, spend as little money as possible and retain the most amount of equity as possible. For some houses, no matter what you do, you are never going to be able to spend enough money to bring it up to where it can adequately compete with everything else on the market and still recoup your cost? So at what point is adding an the additional 6% in commissions, as a cost of sales, going to achieve your objectives?
“What most sellers dont realize is that conventional wisdom in real estate is often the most expensive option when dealing with houses in need of repairs.” Real Estate agents are not experts in distressed houses. In fact for the bottom 40% of the real estate market they actually can cost you 13% more than if you just sold your house for cash.” Peter Westbrook
Conventional Wisdom is Not Always Wisdom
I understand that conventional wisdom has a powerful pull and when a house needs to be sold it is difficult if not impossible to resist that knee jerk reaction. Most homeowners pick up the phone and just list their houses with the first real estate agent that they talk to. They’re hoping for a fast sale at a price that will allow them to move on and pull the most amount of equity at the time of sale. But what they really never account for is the real condition of their house and what buyers are really looking for. That is why houses just sit and almost 40% of all real estate listing expire without an offer.
Here is a quick tip, as 2020 approaches know that what most buyers are looking for is move in ready. That is a whopping 82% of buyers that want the house fixed and updated before they move in. Even if a buyer wanted to purchase your house as is, there are no banks that will lend any money to those buyers that are looking for the fixer uppers because the rules will no longer allow it. Even conventional loans requiring large down payments, are no longer allowing the buyers to do their own work. That is a huge detractor and why cash is king in this sector of the market.
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So, if you pick up the phone and the next thing you are doing is signing a listing agreement (like 72% of all sellers do), with the very first real estate agent that you talk to… you need to know that there are 8,456 active real estate agents in Sacramento. What are the chances that you randomly pick the best real estate agent? They’re not very good at all and in fact, most sellers forge ahead without having all of the information or knowing the true value of their house let alone know how the house will be marketed.
Note I did not say sold. That is an important distinction because in real estate your house can only be sold if it is advertised to the right buyer. Listing agents are not sales people and they are not marketing experts, but they can give the “right house” a lot of exposure. The speed in which the new technologies have advanced over the last 12 years can put your house in front of more buyers than even real estate agents never imagined. The trick is to get the house in front of the right buyers.
Reality Check: If I am looking for a move in ready 3 bedroom, 2 bath house priced at $350,000 and your 3 Bath, 2 bedroom house that needs a lot of work is priced at $310,000… it is NOT going to interest me. The fact that you want to sell your fixer upper is going to be overlooked by everyone that wants move in ready. It really is that simple. The other fact is that No lenders are going to approve or appraise your house for a loan that needs a lot of work even at a discounted price.
But what really happened is that your real estate agent did you a disservice by listing your house at a price, (that gave the appearance of being discounted) that it would never sell for. They also placed your house in a state of limbo for any other buyers including all cash buyers because no matter how difficult it is to locate houses in this market, no cash buyers are going to pay an inflated price let alone a real estate agents commission for an overpriced house. It is easier to wait until your listing expires.
The truth is your agent was more interested in getting your listing knowing full well the market would not support the price hoping that you kept dropping the price until it sold before the listing expired. Therein lies the rub, because over 38% of all listing on the the Multiple Listing Service expire before they are sold. That is a big number, but for most real estate agents it is all just a numbers game. For houses that need a lot of work, real estate agents have no real marketing strategy or plan to get them sold. The real problem is that most sellers just dont know what those numbers are and what it takes to sell a house in less than perfect condition as is.
That leaves you with two options; 1) fix and update everything in your house so that it passes all of its inspections and appraises for the amount that you want to sell or 2) sell your house to a Cash home buyer that will pay cash without any need for inspections or appraisals. Those are the choices.
What most sellers dont know is that there is NOT really a huge disparity in the selling price between the two options once all of the factors are plugged into the equation. In fact our formula is pretty simple. We take the fair market value of the house, subtract out the repairs needed and some holding cost. There are no commissions to pay and we will close fast so you are not paying for additional cost while you wait for a buyer. What usually gets in the way for most homeowners is that they need to at least try the conventional route prior to calling us. Sometimes our view or our houses masks their real condition and value and just delays the sale of the house.
Sacramento Home Buyers and Cash Offers
What most sellers don’t understand about Cash Home Buyers in Sacramento is the power of the offer. Every house has a potentially two buyers… the one that will pay cash and the one that requires financing. The real question to ask yourself is what kind of house do I have. Is it going to allow the conventional buyer to walk in and make that purchase? If the answer is NO, then you need to adjust your expectations regarding who will be interested.
The real question should be are my expectations realistic and does it really matter if what I end up with at closing is as much equity as possible. Most sellers don’t understand the financial realities of selling and how the expenses of hiring a real estate agent add up. Here is a hint… the seller pays for it all! Sometimes it makes a lot more sense to just take the cash!
Sacramento Home Buyers and Straightforward Closings
Professional home buyers in Sacramento typically close faster than traditional home buyers, and usually in pay full in cash. Traditional home purchases usually require qualifications from banks, mortgage underwriting time, property inspection time and the buyer may not end up qualifying in the end. There are also normally no commissions paid to a buyer’s or seller’s agent which means thousands of dollars in savings. The usual commission is 3% per side, so if you sell your home for $300,000, you would have to pay $18,000 in commissions alone! Professional home buyers also may not charge transaction fees; if they do, they are extremely low in comparison to the commission or closing costs you would have to pay otherwise. They also provide mail-away closings which is a wonderful thing for out of state owners.
Sacramento Home Buyers and Purchasing Homes As-Is
Professional home buyers in Sacramento will usually purchase homes as-is. As a seller, this means you do not have to worry about repairs before closing or any other additional expenses you were not planning on. There are some companies that do not require inspections which makes it a truly as-is transaction.
Sacramento Home Buyers and No Inspections
Over the past 11 years I have seen enough distressed houses to know what I am looking at. As a general contractor I can pretty much tell what is wrong with a house based on a visual walkthrough. Certainly, inspections for termites and other wood destroying pests are valuable for any buyer, but I am not going to waste your time. I dont rely on them and as a result I dont order them. Even after I purchase a house I am usually so busy deconstructing the house to correct the obvious problems that I run into the hidden ones as well.
With Westbrook REI, we offer a cash price based on the AS IS condition of your house. We arrive at that number by taking the fair markaet value of your house, subtract out the repairs and an little holding cost. It is that simple. We don’t low ball and offer, order multiple inspections and then try to renegotiate the sale after it is already in escrow. That is NOT what we do.
Sacramento Home Buyers offer Sellers Lower Risk Transactions
Selling to a professional home buyer is extremely straight forward. We typically will lay out every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. You will also have lessened exposure to legal risks. You won’t have to worry about the buyer finding something you didn’t know or something that you didn’t disclose. Most buyers want to know everything and the come back with something they don’t like about the home or the neighborhood. Under most traditional real estate contracts, there is a potential for the buyer to sue you if they feel they didn’t get all of the information, or if they feel the facts were misconstrued. Professional home buyers already know the state of the property, and they are willing to take on that risk without any contingencies.
Sacramento Home Buyers and No Open Houses
When you decide to use a professional home buyer in Sacramento, you will not have to worry about going through a roller coaster of emotions. There are no frustrating, middle-of-dinner phone calls asking if you are available to show your home. You don’t have to worry about leaving your home spotless every day before heading to work, just in case there is a showing while you’re gone. You don’t have to worry about possibly running into a buyer’s agent or their clients or dealing with them asking you questions that you really shouldn’t answer anyway. You also don’t have to worry about buyers arguing with you over which furniture you are taking and what you are leaving.
Sacramento Home Buyers and Flexibility
Professional home buyers are in it for the investment. They are not expecting to move into the home on the day of closing. Most home buyers will allow a move-out timeframe after closing to allow you to relocate at your own pace. This is extremely helpful, especially with such quick closing timeframes. Also, you may not even have to clean the home when you leave. You can simply pack your personal items and furniture you want to keep and leave the rest.
For many homeowners, working with Sacramento home buyers means selling their house fast in Sacramento! Call Peter Westbrook 209-481-7780. Foe over 10 Years