Should I Sell To A "Buy Your House Now" Company?
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- Опубліковано 12 вер 2024
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My sister and I looked into those "Buy your house now" companies when my father passed away in 2020. His house was 110 years old and in a run-down neighborhood and Zillow/Redfin estimated it's value at $50K-$80K. It had been stripped back to the studs and completely remodeled on the inside in 2006 and my dad still owed $36K on a HELOC for the remodel. We contacted as many of those companies as we could find in September 2020. We got 5 different offers ranging from $8K to $17K. We cleaned it and spent less than $50 on some small things like caulk, fixing loose trim, and fixing loose fence boards. We sold it for $105,000 in December 2020 using a realtor.
They offer a service for those unwilling to wait.
@@kratostomatoes8587 Haha, yeah, right. They try to spin it that way, but they are really preying on seller ignorance. I get at least 1 call every week from these companies wanting to buy my home. I know what my home is worth and I've played along a few times and they always offer at least $100K _under_ market value, and that's before they send in their inspector to find issues and they adjust their price even lower. How many of those sellers that were unwilling to wait would adjust their willingness if they knew how much more they could get on the open market?
@@kratostomatoes8587
They offer to steal 75% to 90% of thevalue of your property... and laugh at you.
You can sell just as fast to other investors that aren't scum.
I also called the we buy houses and no agent has called back,emailed,etc yet.
I will be also talking to a few realtors and probably an attorney .
I have a bit of time (I’d like to sell it within the year or close to that) to weigh options.
There is a bit of work the place needs and we don’t want to put much into preparing it for sale.
I want rid of the place but taking the time to learn seems like a good idea.
I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.
I suggest you offset your real estate and get into stocks, A recession as bad as it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too.
You are right! I’ve diversified my portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
Do you mind sharing info on the adviser who assisted you?
My Financial adviser is ‘’Stacie Lynn Winson’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Paid off my house last night before I went to bed.
I am debt-free.
Congratulations! I can’t wait for that feeling and I don’t even have a house yet.
I bet you slept very well!
🥂
Bravo! Free Free Free Free Free 👏👏
Can I borrow $30K?
I had a house worth 300k and those guys would come in and offer 100k cash! I just thought they were all idiots! I sold it for 290k to someone else
They offer a service for those too impatient to wait for the sale.
"The stock market is a mechanism that moves money from the impatient to the patient"
-Warren Buffet
Absolutely not. When I purchased my house cash 10 years ago I started to receive nothing but emails, phone calls and mail offering to buy instantly. When I called them to screw with them it was very evident they were after people who were in a bad spot and wanted to take advantage of them.
At the end of the conversation I would tell them it's paid off and to remove me from their list.
Once in awhile I still hear from some new outfit.
Dave said they offer 70-80 cents on the dollar. He is way off. The "I buy homes for cash" guys usually offer 30-40 cents on the dollar. they may negotiate a bit higher but they start there and try to push people to stay at the 50 cents mark. Unless u r desperate for food, don't sell to these cash buyers.
Exactly
They want it for free hose bastardd
Correct, they low ball it big time. They will never tell you a figure, they are scumbags
With a million dollar view, fall foliage can add up to 10% more than the summer value.
My parents got lowballed by over $150K from them on an investment property they are getting rid of. Not a scam, just opportunists.
In May of last year my Dad sold his home in Phoenix to one of these, he sold it for much less than had he gotten realtor to sell it for him. Sold for $360k, but in less than 30 days it was resold for $530k (June), not knowing if anything was done to it in that time as I did know it would resell in that time frame. Updates were obviously done because from the pictures I see from the listing my dad's old house (circa 1970s) looks nothing like what it did. Fast forward from June to October it was listed for $949k. Listing price fluctuated greatly as high as $999k in December, then finally sold for $949k in March. In May it was listed for sale again for $999k, listing was removed in August after price was dropped and went unsold for $899k.
My point is just to show you not only are those kinds of companies are crooked, but you'd be much better off getting a realtor involved. Now my brother was the one on my dad about selling it like he did, but I told him that dad wanted a quick sale and that's what he got. Our dad had also already purchased an acre of property in Prescott Valley.
So what exactly was "crooked" about the transaction? It sounds more like your father was uninformed or just impatient.
@@christopherharris3229 They end up giving you less than what it is worth and selling it for much much more to people who actually need a home. Just unethical all around. If I had to sell my house to someone, I would do it ethically, for the exact property value. These real estate companies and buy for cash businesses are BAD!
@@christopherharris3229 its a scam if you are uninformed
A fool and his money are soon parted.
Compare to other buy your home now companies... that one was generous. They usually go as high as 25% of value. Often they only give 10%
When I bought my house. on closing day the occupants were not ready to move out despite having signed a contract that said I got "occupancy at closing." Fortunately I was able to delay my movers, organize a place to stay as I'd already started new job, and they were able to pay me rent for the house I just bought until their home and movers were ready. It worked fine, but I'd highly have preferred to have had it arranged in advance OR to have them read the contract they signed or their realtor explain it to them! You'd be doing the same thing....only arrange a 3-4 month stay after closing. Saves you moving to a rental and gives you time to get into the new place.
I get txt and calls to buy our home. I always say we are not desperate and do not need $$, but throw out your best price and I'll consider. Never hear a response.....
NO, they will NEVER offer a price! That IS part of the scam. Also they DO NOT have cash money. They do this on LOANS!!!!! Wonder who else did that????mmm???
We bought another house while owning our first house. We rented out the first house until we sold it. You have to be able to afford both mortgages until one sells, but we could. The houses were 11 blocks apart.
I did the same, it was such a wise choice for us. Although the market was super hot so we had no problem selling
We did something similar, except for the renting out. We gave ourselves about a 4 month window where we had both houses. The new house needed a little tlc, it had been sitting empty for 18 months. Former owner's husband had died (not in the house) and I guess she never liked the house so she just locked the door and never went back. Would have been nice if she'd turned on the furnace or drained the pipes, cleaning out the fridge would have been a plus as well ;)
@@TonyCox1351 We gave our renters a year to decide if they wanted to buy it. They decided not to, and we sold it in a short amount of time.
Nice! Finally a caller that started his question WITHOUT starting his sentence with SOOOOOO.
"Hello uh welcome to me ya" is sort of the same thing, but its fun and def better :)
@@ForkMcGee what??
@@jeffreywhitaker5154I think caller said welcome gee ya.
It's a generational thing.
@@DoctorSmartyPants ohh ok. I got it. Yeah just like in my time we had what’s called “filler words”. Words like “um, like, well. But damn when I ask a simple question like “where is the restroom?” I don’t want to hear “SOOOOOO, the restrooms are….”
Sold my then 4yr old home directly to Zillow during the '21 peak; only charged me a 1% fee; their offer was way more competitive than what I saw other similar homes were being sold in the subdivision using agents; easy process; glad I did it.
Great for you, Zillow lost a lot of money doing this and as far as I’m concerned, they no longer buy homes. I’m happy they aren’t. I’m no fan whatsoever of companies/corporations buying single family homes. They’re meant to be a wealth building tool and home for families and individuals.
Zillow are just real estate services. They do not buy your home. Caller was talking about those companies that buy your home, like "ugly houses".
@@DoctorSmartyPants Zillow got out of the game back in 2021. Actually, they got in over their head in buying up properties then, so no more nowadays.
@byronbullough5739 You are absolutely correct. 2021 was a peak for real estate. I was actually surprised to discover Zillow purchased homes straight up then.
If they bought your home, what is the fee for?
My wife and I made more money selling to Opendoor than selling conventionally. Opendoor then sat on the house for 4 months before selling for about a 40k loss.
Opendoor, plays games with the offer, hard pass.
Sounds like you got lucky and maybe perfect timing.
I had a client that purchased a house in July 2021 for 910 and sold in March 2022 for 1.2 not updates
Why does he need to make a lateral move? Why not just keep the house and not pay the 6% realtor fee to move into this other house.
I think he said for a better school
Better strip club
If you're selling to those guys, it should be as an absolute last resort. They'll never give a number up front.
Absolutely. And they won't give you a number until they appraise it themselves and go thru this manipulation in your presence about how this and that devalues your home. They won't tell you what they like about it. Rather, they will point out all the flaws so they can low ball their offer.
Well I talked to two companies and they both gave me a number obviously it is way lower then what I can sell my house for, you should only use them if you’re in risk of foreclosure
Ken's sporting his favorite shirt for his "That '70's Show" meet up group tonight.
lol I was just thinking when I first saw his shirt that I really liked it (the colors and all).
DON'T DO IT. Those buy your homes company is a big ripofff. One of thoses companies contacted me and wanted to lowball me on purchasing my condo, I hung up on them and worked with a realtor and did a contingency to sell the condo and purchased a townhome.
answer: no
The guy is clueless!!
Its sad
I always tell "Buy your house company". Happy to sell it to you for a million dollar (500k house). Usually ends there.
I'll buy your house for a million. If you sell it to me on my terms. Lol.
@@jasonhowell8 And nope... there is only one term... Million cash/wire for the house. lol
If you sell via agents, the buyer agent gets 3% and the seller agent gets 3% so you get 94% of the sale price. If you have to do some remodeling, then that might cost another 5%. So why take only 80% from a big house buyer when you can take more than 90% with agents (yours will try to get you top dollar in a bidding war)? You can also possibly do a direct sale (lucky if in a hot market) and skip the agent fees (just hire a lawyer for a few hundred to draw up the contracts and pull title/deed from the county).
“Real quick question!” Spends two minutes asking his question.
He was hoping Ramsey would say, go ahead.
I bought land...
Buy your house companies are offering HALF what I paid.
I turned down DOUBLE what I paid from a legitimate buyer.
I refused to even listen to a developer that wants the land to make a HOA neighborhood.
Now consider... Should anyone EVER consider selling to a "Buy your house now" company?
NO!
Hell no!
F No!
I used one of these companies. They paid 150k higher than another offer from a different company. And probably over market as well. When they resold it they lost 100k 😂. On a 600k house
I got an offer of $200-400k on my house that got appraised at 800K 😳. Ummm??? NO!!!
We did the 72 hour and beat the other buyer out of house as we didnt have to sell a house.😊
You're going to take a bath going though one of these companies, but they can cut out some of commission paying an agent, and they buy as-is so you don't have to fix up your home. Depends on your personality. If you want top dollar, forget it. If you just want to wash your hands of the place and don't really care about money then it's not too bad...but you still have to find the right one to deal with.
For nothing
They pay 50% or less of market value
Our neighbor sold his family home to one of these companies. He viewed them as predators, he researched several and knew what he was doing. His house was inherited, paid for, and in need of major repairs. He and his wife wanted out of California. He sold his house for under half of market value; the shysters who bought it pulled a single permit and pretended to "reside" in it for the year they spent gutting and flipping it. When it went on the market it was priced at around $120,000 above market comps for the neighborhood. It sat for several weeks until the price was reduced by $10,000. A few weeks later it was relisted (reset the days on the market to zero) with another maybe $20,000 reduction. It sat for another month or so before it went under contract and then took another nearly three months to close. Our new neighbors told us that the delay in closing was the price of the house and the unpermitted work. 😂
@@user-mv9tt4st9k In heavy "inspections" areas, that can be a big problem!
In 3/22 my house was worth about $500,000. We listed on 4/22 which was about two months after the market shifted. Took about 6 weeks and sold it to OfferPad. It was 100% my fault I didn’t read the offer contract that had (hidden in the legal crap in plain site) they get 5% cash back at closing. So we had originally listed for $500,000. Sold it to them for $460,000. Only netted $440,000 after their BULLSHIT 5% cash back. 3 weeks later they had painted the house inside and put new carpet for $515,000. I was SO pissed I’d messed up….. well, remember the shifting market (In Phoenix , Az. Yeah, they reduced it to 485k, to 470k, and finally sold [after 11 months and they ended up putting all new wood floors, painted the outside, replaced the pool pump, the pool filter, and the hot water heater as well as the garage door. They did end up selling for $439,000. We estimate that they also had put it about $25,000 so that deal is definitely a loser for them. Thank goodness. Too bad they are a major company and it won’t hurt them much of if at all.
Do you mean March 2022?
@@DoctorSmartyPantsyes thanks.
When you call in with a question please GET TO THE POINT!!!
Sell to anyone that will pay Fair Market Value
With cash!
The "ugly house" buying companies are just that, "ugly" house buyers. Our neighbor had one of the most run down houses on the block: inherited, paid for, and in need of major repairs. He and his wife sold to a ugly house company because they wanted to leave California and did not have cash to improve the house for a conventional sale (it was fairly run down, especially inside, with a pretty front yard). Their stipulation was that they would not sell it as a tear down (it was his family home), and they sold to a company that agreed to it in the contract.
Here is how it shook out: Neighbor sold the house (singke story, 1,500 square feet/6,000 or so square foot lot, two small garages) for half of the comps in the area. Because California has obscure residency laws to prevent flipping/"gentrification", the company titled it as a "personal residence" and pulled a single permit for "replacement of siding, like for like." Then they brought in three contractor handymen to work on the house for a couple of days a week (no one actually "resided" in it while it was being flipped). The interior was gutted and drywalled, the electrical was upgraded, and a trench was dug across the backyard to upgrade/install plumbing to a back garage that had been "converted" into a bedroom flat decades before. No additional permits for any of the major interior work or plumbing, which included finishing the attic with wallboard and installing a bathroom and shower. Since the residency laws were for a year, at the tenth month the crew was in that home around the clock five or six days a week to complete it. Then they replaced the garage siding and rotted kneebraces, and painted the exterior. The house was listed for $120,000 above area comps. It sat on the market for several weeks and was reduced by $10,000. A couple of weeks after that, there was a second reduction of maybe $20,000 and it was relisted once. During that time another home up the block went on the market and sold for $15,000 above asking price within two weeks. The flipped house sat on the market for nearly three months before an offer was made--the asking price for the neighborhood was outrageous. It was over two months before it finally closed. When we met the neighbors, they told us that resolving the unpermitted work was what had held up the closing for so long.
My takeaway is that the "buy your ugly house/as is" companies are predatory. That noted, our original neighbors were not preyed upon. They knew exactly what they were doing and it was beneficial for them in their situation.
I'm impressed. I didn't realize you could post such a long comment.
I sold my truck to carmax for above book value private party it was crazy a 2 year old truck with 22000 miles i sold it for 3000$ more than i paid which was above private party book value so it can happen course they totally screwed the next guy sold it for 47000 lol i only paid 40000 brand new
The "buy your house now" are investors that will give low ball offers.
Apparently the caller hasn't talked to a real estate agent yet. He needs to find a really good experienced agent who can walk him thru the process because there's also the chance that his buyer will need a contingency so that's another domino. These negotiations are VERY common, almost to be expected, so Dave's advice is good, to make sure they stay calm and not panic about when keys will be exchanged. The last time I moved, we worked out the contingencies, and even then, my buyers needed an extension at the last minute because of a delay getting their mortgage processed so our closing date changed and I had to get a bridge loan from family to cover the one week difference. Not a huge deal for me, but a savvy agent will stay in touch with the seller's agent and manage any scheduling problems.
Agreed. And even an inexperienced agent can walk a seller thru this process. This is what schooling teaches you.
Really?
@@summerforever6736 Yes. Real Estate school. Been there, done it.
Yes! What specifically surprises you?@@summerforever6736
Follow his advice and don't do it.
Does this guy really think these people are going to give him top dollar for his home.... common sense is lacking!!
At best 50 cents on the dollar.
lol guy on the phone says welcome to Dave
There is no one size fits all answer. You have to look at that they offer and what your expenses using are realtor are. I went to one of their sites and looked up what they were selling and what they paid. The big realty site and public record will provide this information. For me it would only be ab out 4lk difference. Worth it to me not have to deal with showing and open houses.
It will always cost more to sell to one of those home buying companies. Reason is, they factor in what it will cost them to sell it (same 6% that you would pay), plus repairs/improvements to get it to a certain sale price, plus their own profits.
@@DoctorSmartyPants Good point, but I would think that it would only be 3% to the buyer agent since they have their employes on salary as the listing agent.
4l?
Sell the wife. next caller
😂 m not buying
@@absi1155 Me neither. That would be the ultimate "Buyers Remorse"! 🤣
Just rent instead 😏
Was anyone else treated to that Adam Sandler animated movie 😭😭😂 that promo was great 🙏🏾🙏🏾
“Welcome to me” 😂
Bet this guy was disappointed Dave didn't ask what his annual income was lol Guy sounds like a Dave Stan.
Lol
Well for Jimmy's "straw man" moaning to work he can't.
@2:30 Wait I thought real estate never went down Dave?
Not in good neighborhoods it doesn't
I think this caller must be a great trumpet player!
TUBA
He just said he sold at the peak. What happened to the prices not going down?
Lol I buy land let's say for $5 and they call me up same year offering a dollar and a half. Course the numbers are bigger but you get what they do
If you want to get 50% lower.
Sue Jung Chung makes me 400,000 a week! All I invested was 20 bonz
What's the address of Dave's house that he sold?
654 Countess Nicole Court, Franklin, TN. It's a $5M property.
Trying to make a decision on hypothetical assumptions us the definition of a fool.
💰 💴
I sold my little house in 2018 for 50G after a buy your house now company offered me 7000 LOL
So wait, Dave sold a home 2 years ago "at the peak" because it was a great opportunity? Then got back in the market 4 months later. What?? Lol. I thought he said real estate never goes down. Why would he call that the "peak"? How was his opportunity great? Why wasn't his house at fair market price? Why was it above fair market price?
He said a great opportunity “to get out the house”.
Dave always says there’s no such thing as a forever home, he probably was just ready for something new and he saw an opportunity to make a lot of money from that one deal.
Appreciation goes down. Only one time in history has the value of homes gone down. And that was when everything blew up in 09. And we know the cause of that. If you dont believe me, NAR can give you the data of historical house values for free. Appreciation is usually 3.5% U.S. average. Neighborhoods can have negative appreciation. I.E. Detroit.
@spurman20 He also said "at the peak." Wanting to sell your home at any time is fine. But justifying it (in a subtle brag) about it being "the peak" when you've constantly said real estate doesn't go down is cognitive dissonance at best. Why did he say peak? It negates everything he's ever said on here about real estate not having peaks.
I will always use a realtor. I think they are worth their weight in gold and make life much easier if you don't know how to navigate the sale yourself.
Realtors are parasites.
They are nothing but a rip off. They do absolutely nothing but collect a check.
We would have lost almost $100,000. Don’t do it
Do a reverse mortgage !!!
Best for you lol
I hate those stupid Haas & Hass commercials!
Why are those "We will buy your house today" billboards always near the other billboards with ambulance chasers with plastic faces and over whitened teeth.
And "discount" laser eye surgery.
More of this type of "obvious" tips content please.
✝️🙏
Had Dave tried minoxidil
Why should he? 🙄
This call seems fake. He knew everything before he even called.
You just don't like his opinions.
The caller said yeah and yes alot, but I don't think he understood half of it, let alone knew any of it.
If he's anything like me, he just got overwhelmed with his research and options and just wanted a second opinion (always a good idea to call your favorite uncle for advice :)
@@Tank-vi2dv Jimmy IS a brain dead troll
This guy is I I I I I, despite being married, that is concerning!
Women are far more I I I I I
This dude is making things far too complicated. There are much easier ways to make good profits. Why go down this road??
Dave listed that house for $15.45M and ended up selling it for $10.2M.
Tends to happen at that level.. pool of buyers is way, way lower obviously. It happens especially outside of NY, California and San Fran… where Dave lives
he paid way less than that for it
A house like Dave's should start way high priced. Better to work down from a very high price than work down from just above market.
Get the fking mortgage
I’m favoured! Despite the ups and downs in the economy, I still make $12K weekly profit out of my investment I just cleared my mortgage 7 months ago and I give back 20% of my weekly interest back to Charity.
What kind of investment do you do?
How do you earn that much weekly
I earn from investing in the digital market with the guidance of Mrs Anne Mayfield Jones Brokerage services...
Her strategy has been helping alot of traders/ newbies out there, with her program I was able to recover my losses from the crash so swiftly.
I'm 40 and have been looking for ways to be successful, please how??