Seem too good to be true?

Have you owned your home for many years and have quite a bit of built up equity? Considering selling in order to cash out, downsize, and/or relocate? I’m sure you’ve seen the commercials from various local investor companies that offer to buy your house sight unseen for cash. In addition, you’ve probably received “cash” offers in the mail and/or on the receiving end of multiple phone calls of buyers soliciting you to sell your home to them. Perhaps you’ve even reached out to some of the brokers who offer to invest their money in to renovating your home and sell it for you. Clearly, there is a housing inventory shortage in the resale market in San Diego (and most of the country), and still a market for investors to quickly update them and resell, or “flip” them, and make a profit. As a homeowner, I encourage you to look elsewhere than to these “too good to be true” offers, because they are exactly that. The investors offering the “sight unseen, cash deal” is calculating their profit margin into your loss. Yes, it may feel easier to know that you don’t have to do anything to sell your home – no invasive buyer inspections, no repairs, no sprucing up, no having to deal with showings and strangers coming through your home. That said, is that convenience worth your livelihood and nest egg going into the future? Your home may be in severe need of repair, perhaps it needs a new roof, sewer drain line, electrical repairs, flooring repaired, not to mention updated kitchen and baths in order to get top market value for it. As a home seller, you could consider working with a real estate professional to secure the highest market value for you and negotiate to protect your value and get you the highest return with the home in its CURRENT condition.

Consider this scenario:

	Selling through a Realtor	Selling directly to investor
Value on the open market	$1,000,000	$1,000,000
Offering price (if prepared and priced properly through the guidance of your Realtor)	$1,000,000	$650,000
Commission	$25k-$50k	$0
Expenses to prepare (prelisting inspections, reports, if elected)	$750	$0
Potential repair credit	$5K-$10K	$0
Misc. Seller costs (escrow, title, transfer fees, etc.)	$5k	$0
Seller Net Proceeds from sale	$934,250	$650,000

In the above scenario, the investor will invest approx. $150,000 - $200k and then sell the property for $1,250,000 or more, and profit $400,000. Or you, the homeowner, could work with a professional and keep that profit of approx. $300k more than you’d get working with that investor. As a real estate professional, we are here to make your lives as easy as possible during the selling process. We will guide you through the process and help you make informed decisions, all the while protecting your assets and livelihood. While it may feel overwhelming, I urge you to reach out to a trusted Realtor when it comes time to consider selling your home and not fall victim to these “buy direct investors”.

If you’ve been considering any of the above, please give me a call at 619-944-2798. I’d be happy to consult with you regarding best courses of action to get you the results you deserve.