we're trying to sell but im wondering if we cant, granted its not even on the market yet, just owrd of mouth, but i worry that we'll be carrying 2 mortgages and that scares me. we havent built our other house yet but i dont know how much longer we can wait considering we have 2 kids in an extrememly NICE but very small home...so i was wondering if what the pros and cons were of having one of the other companies just buy it??
2007-07-27 04:01:35 · 5 answers · asked by toolate 3 in Business & Finance ➔ Renting & Real Estate
The con is that they will only offer you 75 to 80% of the value of your home maximum. So if your thinking of asking $200,000, they will appraise the home and if they agree with that number they will offer something like $150,000. Some will come back with an appraised amount lower, and will offer you the 75 to 80% of that number. Uless you have a ton of equity in the home and are in a real financial bind, you lose. The only way to cover yourself is when you contract to buy your new home insist on a contingency in the contract that says if you cannot sell your existing home by the settlement date, the contract is null and you get your deposit monies back in full. Many new home builders are bulking at this as they have been stuck with too many completed but unsold homes. Worse case is you break the contract on the new home, and take the loss of your down payment. Hopefully, you put the least amount possible down so your losses are at a minimum everything considered.
2007-07-27 04:13:11 · answer #1 · answered by Sane 6 · 0⤊ 0⤋
Those companies will usually buy at either 80% of market value or loan payoff....sometimes whichever is less.
They never, ever pay close to full market value, b/c they make their money buy remodeling and selling it.
However, if you are ok with that....make sure you get a Real Estate attorney to look over the contract before you sign, and they can be very good deals if all you are looking for is to sell a home.
2007-07-27 11:22:47 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
Those "we buy houses" companies pay a fraction of market value, expect to receive about 70% of market value. They close quickly, so that is the only "pro".
With a slow real estate market, it will be very challenging to sell your house if your only marketing is word of mouth.
2007-07-27 11:10:41 · answer #3 · answered by godged 7 · 0⤊ 1⤋
They will not pay you market price.
They are in the investment business to make bucks.
2007-07-27 11:06:46 · answer #4 · answered by ed 7 · 1⤊ 0⤋
They pay next to nothing and some of them are scam artists.
2007-07-27 11:04:33 · answer #5 · answered by wizjp 7 · 1⤊ 1⤋