If you own a house in Dallas, Fort Worth or any of the surrounding cities in the DFW Metroplex, you have undoubtedly received a lot of postcards and letters stating “we buy houses”, “sell your house fast”, “cash for houses”, and all the other catch phrases real estate investors use to buy houses at fire sale prices. The “We Buy Houses” business model is to buy your house at 70% – 80% of its retail value less repairs and holding costs….make the required repairs and resell for a profit. Now all businesses are in business to make money, but the real estate investing business is one of the few businesses whose whole model is to capitalize on uneducated home sellers giving their house away at a substantial discount. Most of the houses that are sold to real estate investors need repairs, have unpaid liens, are behind in payments or have some other issue that require a quick sale. Because of the fact these houses need a quick sale without inspection, loan, or appraisal contingencies…..the trade off will be with price. Real Estate investors serve a need in this market but its never a good idea to sell to a real estate investor that does not have your best interests at heart.
If you are in a position where you have to sell your house quick, know all of your options before you accept a low ball offer. Only work with real estate investors who show you what homes are selling for in the same area of your house, a list of repairs that need to be completed, and shows you how he/she came up with their offer. Even if you think you have a fair offer always verify with sold houses in the neighborhood before you sign a sales contract. Only work with real estate investors who have your best interest at heart and not their bottom line.