Sellling an old house quickly

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tc101
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Sellling an old house quickly

Post by tc101 »

I get frequent junk mail from companies that say they will buy my house quickly, for cash.

I have a big old house that could use a lot of work. I could probably put $200K into it and sell it for $300K more but it seems like that would be more trouble than it is worth. If I was younger I would spend the money and fix it up, but I have plenty of money and don't know how much longer I have to live and don't want to spend any of my remaining time dealing with contractors and real estate people.

Are the companies offering a quick sale for cash legitimate, or would I be wasting my time with them? What would be the quickest and easiest way to sell a house that needs work.
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Jack FFR1846
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Re: Sellling an old house quickly

Post by Jack FFR1846 »

These places are legitimate and have cash to buy your house. Say it's normal value is $100k. They'll give you $50k cash.

You can also put it on the market with a regular old real estate agent. We did this when DW's aunt went into assisted living. Zillow said it was worth $295k, the city assessment was $80k and it was sold to a family of tradespeople. They bought it to live in and fix up over time. Sold for $135k. 3 decker built in 1890 on about 1/4 acre with lead paint, knob and tub wiring and asbestos. Can you beat that? Oh, wait, the oil tank leaked.
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J295
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Re: Sellling an old house quickly

Post by J295 »

My sense is the companies doing this deeply discount the price.

In our community, there are handful of locals that buy distressed properties. So here I would hire a real estate agent that works in that market and have him/her try and sell it as is where is.

Another option here is public auction. A good local auctioner will know the buyers who look for these kind of properties.
123
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Re: Sellling an old house quickly

Post by 123 »

The companies that buy houses quickly discount the price considerably - maybe 20% - 35%. I watch my old neighborhood on Zillow and there was one neighbor's house (2500 square feet) I knew well that sold for $400K to a flipper. Two months later it was back on the market again and sold quickly for $850K. The people that sold the house had many dogs and cats. The online photos of the flipped home showed new kitchen and bath cabinets and new paint and flooring throughout but nothing special. The flipper removed all the landscaping and yard junk and planted a new front lawn. The renovations probably cost the flipper less than $100K but they made a tidy profit with the flip. Some folks don't want to deal with renovations or maybe they don't want to subject their dogs and cats to them.
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stan1
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Re: Sellling an old house quickly

Post by stan1 »

Auction with a reasonable minimum reserve or listing it with an agent who specializes in selling rental properties or fixers. Such a property will attract bottom feeders, but at least get some competition among the bottom feeders. Don't work with an agent who primarily does turnkey homes. You write that you want easy and fast so FSBO probably will not do that unless this property has a strong asset such as a very good location in a market with strong demand. If the house is well located you have more options than if its not.
Last edited by stan1 on Mon Jul 08, 2024 11:22 am, edited 1 time in total.
heisenberg.
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Re: Sellling an old house quickly

Post by heisenberg. »

Agreed these companies are most likely legit, but they will lowball you. It would hurt me to see my house again on Zillow a few months later with some half-ass fix&flip renovations for multiples of what I got..

I would speak to one or two agents to get a feel what they think they could sell the house as is. If you feel funny you can call some of the cash buyers and see if they offer you anywhere close to what the agent said minis their commission.

Agreed I would not put any money into renovations, just sell as is.
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windaar
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Re: Sellling an old house quickly

Post by windaar »

I wanted to unload an unimproved house and gave the job to a real estate agent saying that I absolutely wanted it sold in 30 days. It sold in 30 days.
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bombcar
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Re: Sellling an old house quickly

Post by bombcar »

You will always get more money on the open market, but you need to let your realtor know you want it GONE in 15, 30, 60 days, whatever it may be.

You will be surprised how high you can sell what you think is an absolute wreck of a house.

The ONE advantage the cash for house guys have is they WILL give you cash very quickly. But it may be half what you could get on the market.
Last edited by bombcar on Mon Jul 08, 2024 11:55 am, edited 1 time in total.
Mike Scott
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Re: Sellling an old house quickly

Post by Mike Scott »

The cash buyers are legit but they will offer half or less value. I would talk with a local real estate agent for a conventional listing and sale. In our local market, fixer uppers are desirable because they come in at a lower price. A little landscaping and clean up may make more difference than paying for extensive renovations.
bobn60014
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Re: Sellling an old house quickly

Post by bobn60014 »

A recent thread along similar lines...

viewtopic.php?p=7924939#p7924939
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bd7
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Re: Sellling an old house quickly

Post by bd7 »

tc101 wrote: Mon Jul 08, 2024 10:50 am Are the companies offering a quick sale for cash legitimate, or would I be wasting my time with them?
Definitely not a waste of time. Based on the experience of my neighbors, flipper/wholesaler types will often pay pretty good money for properties when you consider factors like condition, time and selling expenses. I'm in SoCal, so YMMV. You should get some offers and then figure out a realistic as-is value for your property.

So figure out what you think the house is worth and contact a few of them--you may be pleasantly surprised or you may not. Whatever number they give you, keep in mind that you'll end up keeping most or all of it and you won't need to put a nickel into getting the house ready for sale. Don't get angry or upset if you think one is lowballing you, just get other offers. If they are all low, perhaps there is a reason.

Some flip experiences in my neighborhood:

1. 10 years ago a flipper bought the completely trashed house next door to us for $445k with drug-addict tenants occupying the house with no lease. We figured the house was worth maybe $500k, we had just bought our nicer, bigger, newly-remodeled house two years earlier for $525k. The flipper's renovator spend 4-5 months replacing the entire interior of the house (urine-soaked drywall, broken countertops, things like that) along with completely redoing the in-ground swimming pool and then sold the house for $658k. IMO they earned their money although they did make a profit.

2. Recently some flippers bought a house behind us on a busy street for $855k. It apparently didn't need much beyond a cleaning and minor maintenence, but when they put it on the market at $965k it didn't sell. They lowered the price several times and now it is pending with the last price listed at $925k. So you can compare receiving $885k up front, no risk no costs, with putting it on the market and waiting several months to maybe get $925k less costs. In this case I think the homeowner won.
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Re: Sellling an old house quickly

Post by bombcar »

Flipping really works best when the house is really pretty surprisinglingly unlivable. Cat or other damage is an example, people have a really hard time spending half a million dollars on something that smells like an unchanged litterbox.

But that is surprisingly "cheap" to fix compared to some things. Many to most horrible house problems are cheaper to fix than people realize.

The real trick is buying the $500k house for $400k and doing $20k worth of work so you can sell it for $475k to the flipper who thinks he's going to do $80k of renovations (and still gets $550k out of it).

Get offers, do NOT accept any "exploding offers" where they say "we'll give you $100k if you sell right now"; in fact, I'd just hang up on scammers doing that.

You could get 4-10 quotes (depending on how many you want) and then tell a realtor, "I'll give you 50% commission on anything over $x if it closes this month" where $x it the highest offer from the cash for houses people. You'd be surprised how fast the realtor would move!
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tc101
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Re: Sellling an old house quickly

Post by tc101 »

The most serious problem with my house is a sinking concrete deck between the house and the pool. This could be fixed for about $25K but it needs to be done right by someone who knows what they are doing. If it is not done right it could cause major flooding issues. I think this will scare away some flippers.

On the other hand there may be professional flippers who have contacts with contractors who would do it right an they just cut $25K from their offer.
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CharlesDickens
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Re: Sellling an old house quickly

Post by CharlesDickens »

bobn60014 wrote: Mon Jul 08, 2024 12:01 pm A recent thread along similar lines...

viewtopic.php?p=7924939#p7924939
Yes, I still am working my way through that process. I will update that thread when I am through. In the meantime, however, I can add that a majority of the wholesalers we looked at gave bottom basement lowball offers. I did not contact Grandview homes (a wholesaler in my area) but their Yelp reviews suggest that super lowball offers is their MO. However, one wholesaler gave us a very reasonable offer; so reasonable that I think the margin for his investors may be a bit thin.

So, you really have to know your numbers. I had one wholesaler give a lowball offer. When I rejected the lowball and told him that I had an offer much higher, he came up 72% from his initial offer to try to beat it! Generally speaking, I think that you may be better off listing as-is, or getting a broker who has a list of rehabbers and so as to get some bidding. In general, I think that these wholesalers often are legitimate but lowball and take advantage of of people who are desperate, or out of state, or don't know the value of the property. However, based on my experience, once in a while a lone wholesaler can come through with a reasonable offer.
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snackdog
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Re: Sellling an old house quickly

Post by snackdog »

Get the best local realtor you can find. Tell them you need it sold fast. They will get it done. Many markets are still raging.
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yankees60
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Re: Sellling an old house quickly

Post by yankees60 »

According to zillow my house is worth about $250,000.

My next door neighbor's house Is quite similar but in much better condition than mine inside and out.

A few months ago he put it online for sale for cash only and it sold within a week or 2 For $190,000.

After that for at least a month there were A whole variety of people working on that house from initial total clean out to expensive renovations both inside and outside.

The house is now for sale for $299,000.
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hand
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Re: Sellling an old house quickly

Post by hand »

My assumption was that most of the buy for cash folks advertising via junkmail or on telephone poles typically fall into two major categories:

1) Wholesalers who don't really take any risk - they lock you into a contract and hope to assign to a counterparty at a profit. If they can't find a real buyer they leave you hanging.

2) Buyers who lowball based on perceived desperation (or lack of financial savvy) of the sellers and command a discount based on both condition and their ability to close in days. If you aren't on a tight timeframe, you can likely do better.

What I did with a worn (not truly distressed) rental property that wasn't worth the hassle, was to look at comps, deduct 6% realtor fees and list below market FSBO. I had to fend off a couple of sharky realtors, but property sold quickly to someone looking for a deal and who wanted to paint etc. to their own taste.

If this is a reasonably priced property, there is a ton of untapped demand - list 10% below market and you're likely to get enough interest to find your buyer.
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Re: Sellling an old house quickly

Post by rule of law guy »

these solicitations are either bogus or vultures.

find a realtor who can sell your house as is for an acceptable amount. or do a FSBO at a low ball price to get it done and gone
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