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July 7, 2015
Why Is An Investor’s Offer Less Than What a Realtor Is Saying They Will List My House For?
How often do you pay for convenience and speed? People often pay convenience fee to pay bills instantly online or purchasing movie tickets in advanced through the online kiosk. How many times have you paid to use the express lanes on the highway to avoid that nasty traffic during the rush hour? What about paying double or triple for shipping services like UPS and FedEx to receive or send a package few days earlier? There are many more instances where people spend money to buy convenience and speed.
Then why do some people give real estate investors a bad rap as sometimes trying to “low ball” home owners on their offer to buy their house? Real estate investors sometimes have a reputation of being seen as “cheap” or “unfair” with their offer, but is that really the case?
It is true a real estate investor offer is typically lower than what a Realtor will list an owners house for, but when you take into consideration the fact that if a property needs a lot of work there is a high chance the home owner will not be able to sell their property at the market price, an investor can often be the best option. There are also the extensive costs associated with selling a house on the open market with a Realtor that most owners don’t take into account.
How do investors come up with an offer on a house? When investors make offers to a homeowner for what we can buy their property for, they do not come up with random numbers to offer, but rather analyze the comparable sales within the given area with houses that are similar in size and format. Many real estate investors are licensed realtors, which also give them access to sources that have much more accurate prices and values of properties.
There are also expenses that people who sell their homes on the market with a Realtor do not usually add into their equation such as the remodeling cost of anywhere from $0 to $20,000+, real estate agent commission of 6%, closing costs of 2-4%, inspection repair costs, and weeks or even months of time spent on the market waiting for a buyer.
There is also the time and potential aggravation of having open houses for people to view the property, conducting dozens of one off buyer showings, etc while you’re waiting for an offer to sell your house.
House buying services like 4 Brothers Buy Houses offer to buy the house fast and in cash, while saving people the trouble of going through all the hassles mentioned above. The cash offer may not be as much as what they would get by selling with a Realtor, but after all the above expenses are taken into account it is usually close. Most importantly though, what we offer to home owners is a convenient and fast way to sell their house with very little hassle.