Frequently Asked Questions
We have compiled the following list of frequently asked questions, and you will
be happy to learn that we are very open about how everything works. If you have a question that you
do not find here, please feel free to call us anytime at:
Q: How does this "I Buy Houses" thing work?
A: It really is as simple
as it sounds; we are real estate investors who purchase single
and multi-family homes. After we buy your home, we
will either fix it up and sell it, fix it up and rent it, sell it "as
is" or rent it "as is". What we do with your
home after we buy it depends on too many things to list here,
but we do enough home purchases and sales that making little to
no money on your home right now is not a problem.
what if my house is in VERY BAD shape?
It really doesn't matter what condition your home is in because we can fix
just about any problem your home might have. If your home has
a problem that we can't fix, we will hire someone
who can. Even if the only thing holding your home up is
the termites, there is still a good chance we might buy it from
you, for we are also interested in vacant, or soon-to-be vacant,
Q: My home
is in good shape, but
I have no equity. Can you still help me?
A: Most likely, yes we
can. The only thing that can be a problem for us is
negative equity, and even that can be handled in many situations.
Q: Why would
I sell to you
when I can sell my home through an agent?
A: We are so glad you asked this
question. There are many advantages to selling
directly to an investor. Some of those Reasons are:
1. We do not care about
It doesn't matter what your house looks like. We do not even care if you stop
doing your dishes three weeks before showing your home. However, an agent
will insist you keep your home in "show" condition at all times while he or she is trying to sell it.
You do not have to make any repairs. As we said above, the condition of your
home will not be a determining factor in whether or not we can help
you. Go ahead and leave the holes in the walls.
3. We can purchase your home
VERY quickly. In certain
situations, we can even close in as little as 72 hours. Depending on the time
of year and other factors, selling your home through an agent
takes several months, IF they can even find a buyer.
4. It is a "for sure" sale. When you list your home with
an agent, yours is just one of many homes that your agent
is trying to sell. You hope they sell your home quickly, but there
is no guarantee. Maybe they will find a
buyer--maybe they won't. When you contact us, we can make a quick decision
and tell you immediately whether or not we can buy your home,
GUARANTEED , and, after making a
decision, we can close very quickly. No waiting. No
wondering. It is a done deal.
make more money selling my home through an agent?
A: It is possible in some
situations, but the costs associated with selling through an agent
need to be carefully examined. As an example, let's say
your home is worth $150,000:
The average home is sold for 4%-5% less than what it is listed for. So if your
$150,000 home was listed as such, you can expect a seller to negotiate
your price down by $6,000 (assuming 4%). You can list your
home for more than it is worth to try to get a sale price of
$150,000, but that would mean your home would be on the market much
Agents charge a commission whenever they sell a
home. This commission is 6%-7% of the purchase price of the
home. On a $144,000 sale, the agent's commission (assuming 6%)
would be $8,640.
An agent will insist that you pay closing costs on your
home as it is "customary" for the seller to pay. Closing costs
are about 2%-3% of the purchase price of the home. At 2%,
closing costs would be $2,880.
On average, it takes 60 days to find a qualified buyer and
30 days for that buyer to close. Let's assume this home was purchased 3
years ago (the average home sells every 2.5 years
in the U.S.) for $130,000 with a 7% interest rate amortized over
25 years. Mortgage payments for this loan would be $918.81 (plus taxes
and insurance) per month, and after 3 years the loan balance would
be $123,984.42. Waiting three months to sell your
home means you will have to pay your bank $2,756.43 in loan
payments, and your loan balance will drop to $123,394.28.
Your agent will
also insist you make any repairs needed to your home in hopes of a
faster sale at a fair price. The average home in "Good"
condition needs about 2%-3% (of the purchase price) in repairs. Even
if you think there is nothing that needs to be done, you should
expect something to be found by your buyer (they ALWAYS find things
to try to lower your price). If your home noticably needs
work however, this amount can increase greatly. This cost
for repairs is part of the reason homes sell for less than they
are listed for, therefore in this example we will not add this cost to
the total since we already figured on a 4% price reduction.
However, if you make the repairs yourself instead of taking a price
cut, you should expect to pay at least
Your agent will also insist that you keep your home in "show"
condition at all times. Although it doesn't cost anything, the
added hassle of keeping your home perfect while strangers
constantly trample through is a headache most people would prefer to
To sum up, if you sold a $150,000 home through an agent, you can expect to
actually receive $129,723.57 and a serious headache. From this sale,
you would make a total of $6,329.29. This is why most agents
refuse to list homes with less than 15% equity...there just isn't
enough money to guarantee their commission.
On the other hand, if you sell to us, or most other investors for that matter, you will
pay no commission, closing costs or any more loan payments (we can close before
your next loan payment is due), and you will not have to make any repairs or put
your home in show condition. The price we agree upon is
exactly what you get.
How much would we pay for a $150,000 home in "Good"
condition? $137,500 Remember, we are also paying
the closing costs and making any repairs, so we are actually paying at
least $143,380 for your home. If you sold directly to me you
would make $13,515.58 (more than double what you would get selling
through an agent!).
So, how is it possible to make more
money selling your home through an agent? Simple, your agent is a
friend/relative and gives you a 50% discount on their the
commission, they find a buyer within the first week who agrees to pay
full price, has $150,000 in the bank, agrees to pay closing costs, and doesn't
find any flaws in your home. Sure it is possible...so is
winning the lottery.
When you are ready to take the next
step, simply fill out the Buy My Home
form and we will contact you within 24 hours. If you
prefer, you can also reach us by calling: