When you are looking to sell your house fast you have a few options on who to partner with. When looking online you will see multiple companies that offer quick efficient solutions. Many of these we buy home companies operate nationally on a much larger scale. Though most of these companies claim to offer the best solutions to help you sell your home, we have found that often there are big differences between local companies and national companies. Below we break down the 5 top reasons why you should sell to a local “we buy houses” investor (such as 717 Home Buyers) instead of national buyer.
Local Investors Know The Market You Are In
Far too often we will get calls from individuals who have already received a cash offer on their property that was just insulting. Many of these offers come from individuals who do not live in the market they are trying to buy-in. While the internet provides us a treasure trove of information in which to gauge house values, nothing beats intricate knowledge of the local market. House values can dramatically change block by block in a given city so knowing how to value a property appropriately is key.
Local investors usually live and transact business in their target markets. That means they understand pricing much better than someone who is outside your market. Members on our team have lived in the Central PA region their entire lives, and have seen the market shift multiple times within the last two decades. We also have a direct pulse on what other investors in the region are paying for properties. This helps us create a win-win situation for both the seller and buyer to quickly sell the property. Just the other week we came in a full $15,000 higher than a national competitor who had overlooked location and the desirability of school choice when making an offer.
Multiple Options to Help You Sell
When selling your home for cash it’s important to understand that you have multiple options in order to move on from your house. Having a few options allows you to consider the pro’s/con’s of each and choose the best situation for you. When contacting national buyers they usually only offer one option: “wholesaling“.
Wholesaling is the process of getting a house under contract and then assigning it to another buyer. This is a perfectly legal practice and is done for a majority of cash for homes transactions. The national company acts as the middle man selling a good deal to an investor (usually a flipper) and taking a cut for finding the deal. The company never actually buys your house or owns it at any time, they are simply facilitating a real estate transaction. Wholesaling properties has a big downside: if the company fails to find a qualified cash buyer within the designated time frame they could back out of the deal, leaving you with a property that you do not want. Not only have you wasted your time you may also be forced to offer the house for a much lower price than anticipated.
Other Options Available for Home Sellers
Buy Directly From Sellers
When dealing with local real estate investors, you often have a lot more options from which to sell your property. The main differential from national companies is that local companies actually serve as the end buyer for properties, meaning they are not serving as a middle man for another buyer. This is a big difference as the closing process can go much quicker and more efficiently. We have often bought properties directly from motivated sellers ourselves, helping to restore the property by fixing it up and flipping it.
In this process the seller handles the mortgage process instead of a financial institution. Instead of using a traditional mortgage option, like a bank, the seller signs a mortgage with the buyer. This is a really good option if you will take a large tax hit on the sale of your property through forced appreciation or you are looking for montly cash flow. Instead of receiving a large sum of money from the sale you will receive monthly payments over the amortized time period with a pre arranged interest rate. If the buyer fails to make one payment on the note, you can file for foreclosure to reposs the property.
If you have a nice house but limited equity this option can help you move on from your property and receive monthly cash payments with the option for the buyer to purchase your house at a later date. Usually the lease agreement sets a predetermined amount for “leasing” the property within a 3-5 year time frame. At the end of the term the buyer has the option to buy your property for a agreed upon price that factors in appreciation.
Stuck in a property that you just need to get out of and can’t get the right dollar amount? Subject-To could be the right solution for you. In this option, the buyer completely takes over your existing mortgage and continues to make payments on your behalf. This allows you to exit the property without taking a major hit to your credit. You don’t need to worry about sinking additional money or time into the property as the new owner has an incentive to fix the property up.
Integrity and Trust
As a local investor we highly value how we treat and respect our sellers. We are extremely honest with sellers who decide to work with us about the condition of their property, what they can expect to receive for the property, and how our process works. Our business reputation is on the line and can clearly be seen by google and facebook reviews. Furthermore, we offer a variety of options to create a win-win solution for all parties involved.
Many national companies are only interested in making a quick buck, often at your expense. They don’t necessarily care about what is right for you, just how much money they can make.
Meet in Person
A huge benefit of working with a local investor is the ability to meet in person. Whether you are selling your house in Lancaster, York, or Harrisburg we will drive to your property to review options with you. We are committed to making sure you clearly understand our process and know that we are working hard on your behalf to get you the best possible outcome.
Investment Back Into The Community
A huge difference between natioanl and local companies is the investment that they put back into their local communities. For us, this derives from our underlying company philosophy to build a better and more prosporous Central Pa. As local investors we take great pride when we can restore people’s homes and dignity by helping them through tough situations.
As a company, we are also committed to donating money back into well-known organizations in our local community and creating jobs. National companies are more concerned about their bottom lines often forgetting that people are more important than profit.
How to Tell if A Site is Local One Versus A National One
- Has an about page that clearly identifies who they are and has contact information
- Localized images on the site
- Content on the site speaks about a specific city/town in your area
- Testimonials from people in your area
- Multiple location pages
- Only one page on their site is about the market you are in
- Can not contact the owner directly
- Franchise opportunities
- Non-local testimonials