We Buy Houses Atlanta – Good Idea?

We all see the signs at key intersections and on interstate exit ramps – “We Buy Houses – Fast!” You might also find these brightly colored signs on telephone or utility poles or even on abandoned houses! Most these signs make the claim that they will buy houses “as is, where is” for all cash.

If you have a house that you need to sell quickly to move on, this may be the easy button and help you move on from your real estate headache.

Is We Buy Houses Right For You?

How Real Estate Investors Work

The investors putting out these signs are looking for motivated sellers or houses that cannot be sold via traditional means due to repairs, lack of equity or a number of other reasons.

Motivated sellers are those who usually are dealing with a troublesome financial situation. This includes pending foreclosure, bankruptcy, property taxes, divorce, job layoff or storm damaged properties. Outside of common financial situations, sometimes an expired listing or a house going through probate may motivate a seller to contact a cash buyer.

Investors are usually looking to buy a house, multifamily unit or raw land for a wholesale price, which is often below fair market value by at least 25-30 percent. If this is not an option, an investor may offer up terms to the seller to make the deal work for all parties involved. The investor has to take on the burden of repairing the house, dealing with bad tenants or marketing the house for sale or rent. Those costs can quickly add up which is why an investor’s offer may not work for some sellers.

Do Your Own Analysis and Consider Your Situation

It is important to do your analysis and research to determine what is your best course of action. First, you should consider the costs of keeping the house and add up expenses such as mortgage payments, property taxes, insurance and HOA fees. These costs along with utilities and maintenance must continue to be paid while you own the house.

Next ,calculate your total monthly costs and then consider how fast homes in your area have been selling. Once you have these figures, you should be able to determine if it is best to sell now or hold out for a traditional sale.

You may also be facing a scenario where financial outcome is not the most critical factor. Some situations such as a pending foreclosure, back taxes due or probate issues may require a quick sale.

Getting Top Value for Your House

The internet has made it very easy to get an estimate of your property value. You can visit Zillow or Trulia to find a quick market value for your house. If you want a more concrete value, you can pay a certified appraiser a few hundred dollars or reach out to a local real estate agent for a price opinion of your house in its current condition.

Once you have the estimated market value, think about what can be done quickly at a low cost to improve the property and increase the market value. As an investor, here are some of those things we typically do to make sure a house is ready to sell. First, make sure the house is clean, presentable and has curb appeal. You often won’t get the buyer under contract if they don’t walk through the front door. Second, look at your flooring and determine if the carpet, tile or LVP needs to be repaired or replaced. Quality flooring goes a long way towards making a positive first impression with potential buyers. Third, look at your bathrooms and kitchens. Many house sales are lost due to dingy, dark and outdated kitchens and bathrooms. We frequently renovate kitchens and bathrooms because they play an important part in the sale of a home. We never cut corners with kitchens and baths!

If you have the time and the dollars for the necessary improvements, extending the timeline of your sale might be a good move. On the other hand, if you need to sell your house and close in 10 days or less, there is really no way to get it done without selling it for a little less. Investors need to account for property taxes, insurance, realtor fees, closing costs, utilities, etc. All these expenses lower what an investor can reasonably offer you for your home.