We buy houses. You’ve probably seen your posters or heard your ads on the radio. Even in a difficult real estate market, they spread their message. But who are these people and how can they constantly buy houses? Where do they get the money from? What are they doing with the houses? Let’s see.
First, they are investors and investors want to make money with We buy ugly houses Knoxville. Since they have been around for a while now, even in difficult economic times, their business model is likely to work for them. They make money.
When you approach an owner who is considering selling your home, there will be certain things in their presentation. Here’s what to expect:
– We pay cash;
– We install quickly;
– No fee or commission will be paid to a real estate agent;
– You are probably asked how much you owe the house for mortgage loans and other mortgage loans;
– We do not want eventualities for any kind of inspections;
– We will buy your house in its current state;
– You do not need to make repairs;
– They are likely to walk around the house and make an apparent assessment of their condition;
– Even if they want to buy the house as it is, they will still point out the things that look bad in their house;
– They give you an offer and have the documentation ready to go.
So far this seems like a very good way to go. It’s a hassle-free way to sell your home.
In some cases, it is actually a convenient and advantageous way for an owner to sell their home. But this is not always the case. Let’s take a closer look.
-When you go to the settlement table, you receive cash even if the buyer gets a loan to buy the house. The only way you won’t get cash is if you finance the house yourself, which is rarely the case. When the buyer gets a loan, they must show you a pre-approval letter and eventually they must show you a loan commitment letter from your lender. When this happens, it is almost as good as the buyer having cash. When someone is paying cash, they should follow steps similar to steps from a buyer using a loan. First, they must provide proof that they have the money, and secondly, they must be willing before settlement to place them in a custody account that it will designate as the purpose of the money is to purchase the home. They are probably not willing to do this.
-A quick settlement can be 15 days. If they are really delivering a contract that is for a 15-day deal, make sure you can come to an agreement as quickly. They are more likely to actually deliver a deal in about 60 days. A 2 month settlement date is not unreasonable, but your real reason for this is because you do not really want to buy your home. If they really have cash, they could easily settle in 2-3 weeks. During this 2 month period they try to find another buyer. If they find another buyer, they will sell the house to that buyer at a higher price than what they pay. In this scenario, they award their contract to another buyer and the price difference is called an allocation fee. If all their deals are like that, they never have to get money. However, please note that in some situations, an allowance is not allowed so that they can proceed with the purchase, but generally only if they have another buyer on line to whom they can immediately sell the house. If they do not have another buyer ready, they look for a reason to terminate the contract.