Who buys houses for the apprisal price?

Question

I live in St. Petersburg Fl. Who- meaning companies such as remax, we buy ugly houses... etc.

Answer 1

It depends on the market. In a real estate bottom (like we had in Texas in the 80s), values dropped so fast that people were lucky to get the appraised value.

Answer 2

only homeowners who will live there upon purchase will buy for near apprasial.

. All others will buy at a discounted price - WE ( I am in the business) in the home buying wholesale /rehab industry specialize in buying at a discounted price ,properties that are either distressed because they need repairs or because they need to be sold quickly.WE provide a quick easy liquidation serivice for those who just need out NOW!


Here is how a 100,000 home deal would work for a we buy uglyhouses buyer. As you can see it seems like someone should be making a lot of money but by the time you pay mtgs, points, taxes, and fees there is only a relativly small profit after 4 months of work and a huge risk. Now before you say wow those expenses are high - remember that interest on this type of rehab mrtg is usually 15% and insurance is a lot more if no one lives there and in most states taxes are higher if you do not live in the house and claim a homestead type exemption.

House Market Value After Repaired to standard 100,000
- Repairs needed -15,000
-30% for costs of buying and selling, profit etc
1.MTG while being repaired and sold
four months at 1100/month 4400
2 .Insurance for 4 months 1200
3.Utilities for 4 months 1000
4.Taxes for 4 months 1100
5. title costs at sale closing 1500
6. Realtor fees upon sale 6000
7. other fee upon sale 1200
8. Fees leveied when you purchase
to rehab 1000
9. Points on rehab loan when you
purchase 2100
10 Contngency funds if problems 2500
11. profit 10500 = -30,000

Offer 55,000

Answer 3

No one, the investers pay much less. If you are looking for sell to a "we pay cash" or "we buy ugly" expect to receive 40-60% of the value, nothing close to 100.

Remax is a real estate franchise, not an investor.

Answer 4

Your only chance to sell at appraised value is to a buyer who wants to live in the property and loves it.

WeBuyUglyHouses will offer you 65%-70% of market value, as will others who are investing to turn a profit.

Answer 5

Companies are looking to make some money. They'll want to get it for less than the appraised price so that they can turn around and sell it for a profit.

Answer 6

Apparently it works....