What’s up guys? Oz here with Sell Your Home CT. Want to make a video to educate you guys a little bit on what you’re dealing with when you’re dealing with your average “We Buy Houses” real estate investor. There is a flood of new investors out there right now, from the HGTV flipping shows to the seminars and gurus and radio advertisements, just pumping new investors out into the marketplace. Now, these gurus tout wholesaling real estate as the easiest way to get into real estate with no money, no credit, and no risk. I want to explain to you why this hurts nobody but you, the homeowner.
These investors come into the marketplace, they find a homeowner that needs to sell their house quickly, and they make them an uninformed offer. If the homeowner accepts, this now locks the property up under contract. This homeowner is now stuck and can’t negotiate with anyone else. Meanwhile, the investor who most likely doesn’t have their license, has come up with their estimated value and their offer by browsing recently solds on Zillow, and they usually have no idea how to estimate repairs accurately. Their offers tend to be wildly off the mark, either way too low, complete low ball offer, or too high. Both of those scenarios hurt the homeowner.
If the offer is too high, no cash buyers are going to want to buy that property. The wholesaler never actually buys the property. What they do is lock it up under contract, and assign that contract to an end buyer, a cash buyer. Then the cash buyers don’t want it because it’s not a great deal for them. Now the wholesaler goes back to the homeowner and beats them down on price. The homeowner really has no other option if they really have to sell their property quickly, they’re already under contract, they’re much more likely to negotiate. This is a tactic that wholesalers use all the time and it’s dishonest, and what it does is negatively affect the homeowner, ultimately.
It’s super important to be aware of who you’re doing business with. Are they experienced? Do they have a license? Do they have your best interest at heart? We do business a little differently at our company. That’s why we’re licensed and continuously educating ourselves on creative real estate solutions so that we can create unique custom solutions for each individual homeowner’s situation. This allows us to keep the homeowner’s best interest at heart and truly create win-win solutions.
If the homeowner wants top dollar but doesn’t need to sell quickly, we can list the property. If they need to sell quickly and can accept a lower cash offer, we can buy the property cash. If they’re under water, maybe with a vacant property and need to sell, we may be able to purchase their property with a lease option, or subject to their existing financing. If they have no mortgage but want a sustainable source of income and a higher price for their property, we can purchase the property through seller financing. It makes sense that the more options we have, the better able we are to create the right solution for each unique situation.
If you want or need to sell your house, contact us and we can get to know your situation a little better so we can find out what the right solution is for you. You can visit our website at SellYourHomeCT.com or call us at 860-255-8617 and stay tuned for future videos where we’re going to go into more detail about each particular solution we talked about in this video. Until next time guys, have a great day.