The Truth About "We Buy Ugly Houses"
Have you ever wondered while driving or walking along who are these people who say “We Buy Houses” or “We Buy Ugly Houses”? Are these legitimate buyers or is this some sort of scam!
Who are they?
When you find an ad or a sign that says “We Buy Houses” or “We Buy Ugly Houses for Cash” with maybe a name and contact information these are normally local investors. These investors can be real estate wholesale investors or cash buyers.
Ok so now what is a real estate wholesaler vs a cash buyer?
Real estate wholesalers are normally investors that will make an offer to purchase your home and put the property under a contract and then contact their buyers list of cash buyers and assign the deal to them. They make their money off of the difference between the price they was able to secure the house for and the price they will sell to their cash buyer. Cash buyers are normally the buyers who have to cash on hand and is ready to make a purchase of the property for whatever their end purpose is. Whether it's to buy fix and flip, purchase and hold, or whatever is their reason for purchasing your property as an investor.
So which one is better?
Honestly neither one is better then the other it's just a matter if they are willing to offer you a price for your property that you believe is fair considering your situation. What do I mean about fair considering your situation? Well when you approach these type of investors they are best for those going through a hardship and need to sell quickly.
For instance maybe you need to sell your house for financial reasons, like foreclosure or bankruptcy. Maybe the loss of a job is forcing you to sell, or perhaps sickness or injury. Divorce and separation can often force most people to sell their homes. Even if it's a property that you inherited that you need to sell but you don't want to take the time to get it fixed up and buyer ready.
Whatever reason you have for wanting or needing to sell your home “We Buy Ugly Houses” investors are best for these type of situations. These aren't the regular home buyers looking to purchase a property for personal reasons instead these are buyers looking to purchase these properties for business purposes. This is why they will even have signs saying “We Buy Ugly Houses” because they are looking to purchase a property that is below retail value so they can fix and flip or assign the contract to one who wants to fix and flip.
Think of it almost like college textbooks. When you buy the textbook new you pay full price but when you try to sell the book back to the college bookstore they give you a very low price. That's because they want to resell that book. If you want to just get rid of the book this won't be a big deal to you but if you have time and want the highest price then you will want to resell the book yourself or through another means.
Pros and Cons
- Depending on what your needs are as a seller and the condition of your property, they can make you an offer in as little time as 24 hours and pay all cash.
- They provide a quick solution: As mentioned earlier, they buy all types of houses as well as sell a wide range of living places. Whether it’s a single-family house, duplex, bungalow, flat, or condo if they feel it's a potential deal they are willing to purchase the property
- They provide all-cash offers: . You won't have to wait months for them to get approved for a mortgage loan to purchase the property.
- They buy as is: They homes with all types of problems as long as they can get it at the right price so that when they sell they can make a profit.
The biggest con I see is if you are trying to get the highest price for your home these might not be the best people to go to when you're looking to sell your home. As I gave the scenario earlier about the school textbooks...they are in this to make money. It's not a purchase based on their desires but based on whether it's profitable numbers wise. Just contact a few places to see what prices each one is offering to purchase your property for.
If you're interested in selling your property fast contacting the “We Buy Houses” investors might be a great choice to get rid of burdensome properties.
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