Monday, November 07, 2005

Beware of Fast Cash Home Sales

Beware Of Fast-Cash Home Sale Huckster

The signs are everywhere on big, blaring billboards and pieces of cardboard tacked onto telephone poles: " We Buy Ugly Homes." or sometimes "We Buy Houses."

But if you decided to deal with the "rapid resellers," don't expect to get top dollar. And exactly how much you'll get doesn't depend on the condition of your property, either. If you are willing to take your money over time, for example, you may be able to cut a better deal than if you want all your money immediately.

Ken Channa, HomeVestors director of training, says his people look to earn anywhere from 10% to 18% of the value of the house after it is fixed up and sold. That translates into offer to owners typically in the 55% to 65% range of fixed-up market value.

HomeVestors look for 3 kind of sellers:

- People who have owned adn lived in their homes for at least a decade but have not maintained their properties.

- Heirs who recently have inherited houses from a deceased loved one, houses thay may have been vacant or not well maintained for a long time, or houses that may be difficult to part with.

- Investors who are tired of being landlords and have not kept their places inf good repair.

Financially strapped owners who have not been able to make their house payments and are facing foreclosure are "not a big part" of HomeVestors' customer base says Channal. There are numerous honest investors engaged in short-term residential resales.

So, if you want or need to sell quickly, don't want to lift a finger to make your place more attractive to a wider pool of buyers, or perhaps just don't like the idea of putting a for-sale sign in your frontyard or having strangers tramping through your castle, selling to an investor may be the easiest way out.

Be forewarned, though, that choosing the right one takes as much effort as picking a good real estate agent. Start by checking them out with with your local Better Business Bureau, county consumer affairs agency or state attorney general's office.

Another tip: Look for an identifiable name and place of business with a phone number that answers during regular business hours.

Be sure your buyer has the ability to close quickly, certainly as quickly as original promised. Beware of hidden charges too. No one should charge a fee to view your property or make you an offer and there should be no sales commission, either.

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends


No comments: