(Newswire.net — January 5, 2014) Houston, TX — (Kemah, TX) Flipping houses has many pitfalls. How can the seller know they are dealing with a reputable person? Things to consider when a person needs to sell their house fast to an investor for flipping.
There are a number of reason why someone would want to sell their house fast, usually they are people in a desperate situation. They have lost their job and cannot keep up with the payments or they just cannot afford the house as the cost of keeping it up have exceed their current income level.
Case in point, the hit TV Show Extreme Makeover: Home Edition built a home for a family in Kemah Texas. Reported in MSN the family fell into this desperate category of homeowners; “The Beaches have been trying to sell their house — located at 1013 Delesandri Lane — since February and have reduced the price by 33 percent, from $700,000 to $535,000. They say they must sell because the house is too expensive to maintain, especially now that many of their children are grown up and no longer live there”.
Other reasons could be they have inherited a house and they cannot afford to maintain and probably it is far from the family, and too many repairs, etc. These types of situations are perfect for flipping. There are many investors who buy inherited properties fast. Perhaps the person needs to sell to avoid foreclosure, has unpaid taxes, going through a divorce, job transfer, too many repairs, bad tenants that the landlord just doesn’t want the problems of management any more. The reasons go on.
If you find yourself in one of these desperate situations then you need a good person to flip your house to. Most likely you have seen signs posted around town “We Buy Houses” and a phone number. In many cities, Houston included, these signs are illegal. The phone numbers are usually burner cell phones that cannot be traced, this is so the city cannot find out who the guy is with the illegal sign. Right off the bat you have to say this guy is using an illegal method to get his message out. That should be a huge RED FLAG. Good reputable buyers don’t have to do this.
Denise McAdams of EZ House Deals of Houston Texas gives a few suggestion on helping you in this process.
So where should you look?
- You could ask your local real estate agent if they know someone who can buy a house fast. A word of caution don’t let them talk you into giving them a listing. Once you do this on a house that you want to sell fast, if they cannot you are stuck with them and secondly… they want a commission, more problems for you trying to sell.
- Look on the internet and your local newspaper for “We Buy Houses” or “I Buy Houses”. Make sure they have the ability to handle your situation. Get some references, ask how fast can they close and never sign a contract until you are absolutely sure they will do what they say. You can always go with the big boys like you know those guys that say they like Ugly Houses, but in my opinion they should probably be your last choice if you have not found someone in a few days. They will give you that absolute lowest offer out there, you can do better with a little research. Don’t let your desperation cause you to make this mistake. If you can get some cash in your pocket, do it.
- Talk to a number of investors before making your selection. This can be like talking to a used car salesman but you can do it and get past the pain to freedom.
- Make sure they can tell you what their exit strategy is, that they have cash and can close quickly. Not that they have this guy or that guy who will buy it. Talk to the principles. Closing can happen usually in a few days if there are not title problems with your property. Once this is confirmed and they have given you some earnest money sign the contract.
Denise McAdams recommends; to sell fast, be realistic on what you want. You will have to price it at about 70% of market value minus any repairs required. If you cannot do that you may consider letting them take over the payments and let you out. So after you have talked to several buyers and you have written down the options from each one. Go down the list and see who looks like is going to be able to give you the best offer or solution to your problem.
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