-Maintain their privacy
-Building Department issues
-Tired of being a landlord
-Costly repairs or updating needed
Divorce is a horrible, stressful process. You and your ex just want to get done with it, but you have your house hanging around your neck. Neither of you can afford to buy the other one out, so it must be sold. And that takes a loooong time – around here – typically 6-8 months. That’s 6-8 months more of paying taxes, maintaining the yard, electric, insurance, etc. You now have a choice – sell your house quickly Get this albatross sold so both of you can move forward with your lives.
Mom or Dad has passed away and left you their house – and they didn’t do a whole lot of maintenance or updating recently. Sometimes there’s a whole buncha stuff that they “collected” which no one wants. Selling a house like that is hard – and sometimes the difficulty is compounded because you are not nearby to supervise repairs, work with realtors, or clean out the house. You just want the best price for the house – as it is right now – without having to work on this for the next year.
Maintaining their privacy
Some folks don’t want their neighbors and strangers going through their house making judgements. They can’t stand the thought of dozens of pictures of the inside of their house – showing all their possessions – posted on the internet for who-knows-who to see. They don’t want to worry about getting out of their shower to be surprised by a rude, unthinking, realtor using the lockbox without notice.
Building Department Issues
There was a time when you could make additions and improvements to your house and no one would care. That has changed. Porches, decks, finished basements, sheds, pools, etc all need permits now, all need approvals from the local building department. People who have sold to me learned that, while it was fine to make those improvements while they lived in the house, they needed to get approvals for all their hard work before they could sell their house to anyone who needed a mortgage to purchase the house. Ya see.. banks require that there is absolutely no building code issues with the house. So, instead of going though the tedious and expensive process with the building department, they simply sell the house to me. Since I don’t need a mortgage from a bank (I’m buying with cash) so I can buy a house with building violations without a problem.
Tired of Being a Landlord
Sometimes people try their hand at Real Estate Investing by renting their house. They see the income it can generate and it looks quite attractive – until they get a uncooperative tenant. Then it becomes a living hell. Owners say to me “I can’t take it anymore! I just want to sell this house and never have to deal with this, or any other tenant, ever again.” I’m here to save the day and buy their house.
Home owners are often very surprised how picky buyers are nowadays. Home buyers want a new kitchen. A modern bath. New heating equipment. And most importantly… no repairs or significant maintenance for the next 10 years. If your house doesn’t have those things, it will sit for months waiting to be sold (costing thousands in upkeep and taxes, upkeep, etc)
“They can buy my house and then fix it up” is often what the home owner thinks. The flaw with that thought is that today’s homebuyers very often have very little money saved. They often seek to put as little down as possible using FHA Mortgages that only require a measly 3% down payment. And then by the time they pay for inspections, attorney fees, mortgage tax, moving costs, buying furniture, etc, they are tapped out and have no cash for improvements.
So, they buy a house that has everything they want. They will pay a little more for that, but on a monthly basis, it’s small amount – and CERTAINLY CHEAPER than running up expensive credit card debt to pay for the improvements.
So, instead of waiting a year or more for just the right buyer to come along – one that loves the house enough to look past the needed updates, who is willing to go through the effort and life disruption of rehabbing a kitchen or bathroom, and who has enough money saved – home owners decide to sell their house right now, to me, saving time and money.
Costly, Bank Required, Repairs
This is the number one reason people sell me their houses – they don’t want to deal with, or can’t afford, the repairs necessary to have a bank approve the buyer’s mortgage. Since the financial crises, banks take a hard look at the houses they are mortgaging. FHA is the most strict. And they are the most popular funding source since they require the smallest down payment. FHA will nit-pick a house. Look at stair heights. Railings. Age of the roof. Electrical outlets. They need the house to be PERFECT before they approve the mortgage. The worst part is – you know when you find out all there issues? – AFTER the house has been off the market for 2 months. yikes!