SAMSON INSTANT OFFERS!
SAMSON INSTANT OFFERS!
Sellers at all price levels are attracted to the convenience of selling to a Cash Investor or Cash Buyer. Convenience is great but it has a cost.
Sellers at all price levels are attracted to the convenience of selling to a Cash Investor or Cash Buyer. Convenience is great but it has a cost.
There are various types of cash buyers.
We've all seen 'We buy houses’ type websites, mailers and bandit signs on the side of the road placed by real estate investors to attract sellers. The vast majority of these individual investors have been inspired by real estate gurus selling programs on how to flip and wholesale houses.
Some are amateurs who have yet to acquire their first purchase. Others are seriously competent, well-financed and very successful having done hundreds of transactions. Some are licensed agents. Others are builders, contractors or other tradesmen who build or repair homes professionally and invest on the side.
There are various types of cash buyers.
We've all seen 'We buy houses’ type websites, mailers and bandit signs on the side of the road placed by real estate investors to attract sellers. The vast majority of these individual investors have been inspired by real estate gurus selling programs on how to flip and wholesale houses.
Some are amateurs who have yet to acquire their first purchase. Others are seriously competent, well-financed and very successful having done hundreds of transactions. Some are licensed agents. Others are builders, contractors or other tradesmen who build or repair homes professionally and invest on the side.
Many of these investors have institutional or significant private money backing them. Hundreds of millions of dollars are invested in residential real estate by institutional investors and wealthy individual investors.
Some institutional investors are investing directly with their own employee specialists and teams through corporate hi-tech business models.
Many of these investors have institutional or significant private money backing them. Hundreds of millions of dollars are invested in residential real estate by institutional investors and wealthy individual investors.
Some institutional investors are investing directly with their own employee specialists and teams through corporate hi-tech business models.
Recently "iBuyers" like OpenDoor, OfferPad, and Homelight Simple have entered the market to offer quick closing where you pick the date, no showings or open houses, no strangers and Realtors walking through your home, no buyer negotiations. You skip the cost, time, expense, and (in some cases) embarrassment of getting your home market ready!
Recently "iBuyers" like OpenDoor, OfferPad, and Homelight Simple have entered the market to offer quick closing where you pick the date, no showings or open houses, no strangers and Realtors walking through your home, no buyer negotiations. You skip the cost, time, expense, and (in some cases) embarrassment of getting your home market ready!
Their marketing approach lacks only the pitch for your sitting on your couch in your comfy pants binge watching Netflix!
Convenience can be very important. These folks have serious market share. Zillow and Keller Williams have their own versions.
These are major players.
Some investors invest to fix and flip, others to hold and rent out.
I represent both individual investors and institutional ones.
Their marketing approach lacks only the pitch for your sitting on your couch in your comfy pants binge watching Netflix!
Convenience can be very important. These folks have serious market share. Zillow and Keller Williams have their own versions.
These are major players.
Some investors invest to fix and flip, others to hold and rent out.
I represent both individual investors and institutional ones.
The Pros of Selling Your Home for Cash (think "convenience"...)
You can get an offer very quickly and find out what you can get for your home.
You can sell and settle very quickly compared to a traditional home sale. 7-14 days is realistic from date of offer. It’s nice to know that your closing is coming up, and you can make new life plans. The only time constraints are getting title work, insurance, appraisals and inspections (if any) done, and scheduling the closing agent.
Costs of settlement are lower and a cash offer is a stronger offer in that there is less risk to the seller. There are no real estate commissions. Settlement can be much faster.
No repairs are required. There are no showings or time on market. There is no mortgage lender involved, so there's no financing contingency.
You're able to Sell in Difficult Circumstances...
Investors will buy your home in challenging scenarios that turn off other buyers or in which no lenders will loan a buyer mortgage money to purchase the house. In these scenarios, investors or other cash buyers are your only option to sell.
For example:
Homes with title flaws, cloud(s) on title
Homes with large amounts of past due taxes and fees
Burned out or storm-damaged homes
Properties with illegal conversions or code violations
Homes requiring major repairs
The Pros of Selling Your Home for Cash (think "convenience"...)
You can get an offer very quickly and find out what you can get for your home.
You can sell and settle very quickly compared to a traditional home sale. 7-14 days is realistic from date of offer. It’s nice to know that your closing is coming up, and you can make new life plans. The only time constraints are getting title work, insurance, appraisals and inspections (if any) done, and scheduling the closing agent.
Costs of settlement are lower and a cash offer is a stronger offer in that there is less risk to the seller. There are no real estate commissions. Settlement can be much faster.
No repairs are required. There are no showings or time on market. There is no mortgage lender involved, so there's no financing contingency.
You're able to Sell in Difficult Circumstances...
Investors will buy your home in challenging scenarios that turn off other buyers or in which no lenders will loan a buyer mortgage money to purchase the house. In these scenarios, investors or other cash buyers are your only option to sell.
For example:
Homes with title flaws, cloud(s) on title
Homes with large amounts of past due taxes and fees
Burned out or storm-damaged homes
Properties with illegal conversions or code violations
Homes requiring major repairs
The Cons of Selling Your House for Cash "As Is."
There are potential disadvantages to selling to investors:
Low Purchase Offer relative to "Fair Market Value" is the major issue.
The "as is" investor hopes to purchase at a discount “wholesale,” at 50-75% of “after repaired value” so that they can rehab and then sell “retail” and make a profit.
The Cons of Selling Your House for Cash "As Is."
There are potential disadvantages to selling to investors:
Low Purchase Offer relative to "Fair Market Value" is the major issue.
The "as is" investor hopes to purchase at a discount “wholesale,” at 50-75% of “after repaired value” so that they can rehab and then sell “retail” and make a profit.
Even if your house is in very good condition, an investor is planning on resale. They cannot pay full retail value, bear the costs of acquisition, then turn around and sell with the costs of sale and still make a profit.
Even if your house is in very good condition, an investor is planning on resale. They cannot pay full retail value, bear the costs of acquisition, then turn around and sell with the costs of sale and still make a profit.
When the investor is planning on holding the property and leasing it out, they're still guided by the cash flow rates of return on money within the local market. Rarely will that coincide with the full retail market value that a homebuyer may willingly pay.
Non-institutional investors generally prefer to operate in the first-time homebuyer price range (under $300k) and are drawn to fixer properties in need of repair. Since they’re paying cash, more expensive homes present much greater risk.
Selling to such an investor will definitely not result in seller receiving "top dollar" for their home. If a seller wants the convenience offered, the auction strategy elsewhere on this site is a good compromise that does give top dollar!
A sale is still not guaranteed until it is!
Even with the promise of a relatively quick closing and an all-cash transaction, there is still no hard guarantee of a closing until the deal is signed and you have money in your hand.
When the investor is planning on holding the property and leasing it out, they're still guided by the cash flow rates of return on money within the local market. Rarely will that coincide with the full retail market value that a homebuyer may willingly pay.
Non-institutional investors generally prefer to operate in the first-time homebuyer price range (under $300k) and are drawn to fixer properties in need of repair. Since they’re paying cash, more expensive homes present much greater risk.
Selling to such an investor will definitely not result in seller receiving "top dollar" for their home. If a seller wants the convenience offered, the auction strategy elsewhere on this site is a good compromise that does give top dollar!
A sale is still not guaranteed until it is!
Even with the promise of a relatively quick closing and an all-cash transaction, there is still no hard guarantee of a closing until the deal is signed and you have money in your hand.
Most investors really have the money and intend to close quickly. Others simply get properties under contract and then shop the deal around to try and find someone who will pay more for it. They "wholesale" the contract to another investor for a few thousand dollars. If they don’t find someone, they just let the contract expire, wasting your time.
Most investors really have the money and intend to close quickly. Others simply get properties under contract and then shop the deal around to try and find someone who will pay more for it. They "wholesale" the contract to another investor for a few thousand dollars. If they don’t find someone, they just let the contract expire, wasting your time.
Others try to sell you on a creative financing solution, like a lease option, owner financing or contract for deed. There are as many approaches and methods as there are "motivated sellers" seeking convenience!
The estimated cost of repairs and improvements is deducted from what would otherwise be market value. (Realistically, they are with traditional sales too!) And there's a "Service Fee" with the institutional buyers that may exceed a traditional 6% real estate commission. The desired investor profit percentage will also be deducted.
While you won’t be required to make repairs or clean up your home, your sales price will be reduced by those costs. Most investors won’t bid more than 70% of market value, minus any closing and repair costs. In this scenario on a $200,000.00 home with modest repairs needed, offer might be $90,000.00.
You don’t get competing bidders.
There's no open market bidding as with a MLS Listing or a public auction. You can solicit offers from multiple investors or entities.
Conclusion
Ultimately, you can skip the headaches and hassles of selling traditionally by selling quickly to an investor. You get convenience and speed in return. You accept a price that is adjusted downward to reflect the investor's costs and capital risk and that allows for the potential of profit or cash flow on the investment.
Some sellers have no choice other than sale to a cash investor. Others choose cash sale for reasons of urgency, lack of proximity, or lack of concern for their equity position.
Others try to sell you on a creative financing solution, like a lease option, owner financing or contract for deed. There are as many approaches and methods as there are "motivated sellers" seeking convenience!
The estimated cost of repairs and improvements is deducted from what would otherwise be market value. (Realistically, they are with traditional sales too!) And there's a "Service Fee" with the institutional buyers that may exceed a traditional 6% real estate commission. The desired investor profit percentage will also be deducted.
While you won’t be required to make repairs or clean up your home, your sales price will be reduced by those costs. Most investors won’t bid more than 70% of market value, minus any closing and repair costs. In this scenario on a $200,000.00 home with modest repairs needed, offer might be $90,000.00.
You don’t get competing bidders.
There's no open market bidding as with a MLS Listing or a public auction. You can solicit offers from multiple investors or entities.
Conclusion
Ultimately, you can skip the headaches and hassles of selling traditionally by selling quickly to an investor. You get convenience and speed in return. You accept a price that is adjusted downward to reflect the investor's costs and capital risk and that allows for the potential of profit or cash flow on the investment.
Some sellers have no choice other than sale to a cash investor. Others choose cash sale for reasons of urgency, lack of proximity, or lack of concern for their equity position.
A seller who is willing to take the time, and undertake the effort and expense to sell traditionally or via auction, will receive much more favorable pricing!
A seller who is willing to take the time, and undertake the effort and expense to sell traditionally or via auction, will receive much more favorable pricing!
1440 Central Park Blvd., Ste. 210
Fredericksburg, VA 22401
1440 Central Park Blvd., Ste. 210
Fredericksburg, VA 22401
2020 Ernest Dill. All rights reserved. Licensed in the Commonwealth of Virginia, 0225-196087
2020 Ernest Dill. All rights reserved. Licensed in the Commonwealth of Virginia, 0225-196087
Samson Companies LLC is an independently-owned real estate brokerage headquartered in Chantilly, VA, operating as Samson Properties. 14526 Lee Road, Ste. 100, Chantilly, VA 20151. 703-378-8810.
Samson Companies LLC is an independently-owned real estate brokerage headquartered in Chantilly, VA, operating as Samson Properties. 14526 Lee Road, Ste. 100, Chantilly, VA 20151. 703-378-8810.
Get a Spot on my Calendar now for a FREE consultation on the phone, on Zoom, or at your home. No obligation. Takes 30-60 minutes.
Get a Spot on my Calendar now for a FREE consultation on the phone, on Zoom, or at your home. No obligation. Takes 30-60 minutes.
Seller Solution Quick Guide
What is the benefit of using Samson Instant Offers?
Samson Instant Offers enables you to see all your options – whether that be iBuyers, bridge solutions, cash investors, or Any Condition Buyers – you select what works best for you!
Open Market Sale
Selling on the open market exposes the property to the greatest number of buyers, often resulting in the highest sale price and net proceeds to you. Every home is eligible for sale on the open market. Properties listed for sale on the open market are still eligible to receive cash offers.
Bridge Solution
Bridge programs enable you to buy your next house before selling and moving out of your current home. You're enabled to find a new home, then move when you are ready. Some bridge programs allow you to access the equity in your current home while still living in it. Bridge program service fees (about 2.5%) should be taken into account, and not all properties and sellers are eligible.
Instant Sale
"iBuyers" usually purchase properties that are in good condition at close to the open market price, with cash. They buy "pretty houses" and rent them out, investing for income and appreciation. They charge service fees and for preparation and any repairs necessary to lease the home to a tenant. Closing costs are comparable to an open market sale. iBuyers enable you to sell without showings or open houses. And iBuyers close on your timetable, often more quickly than selling on the open market.
Instant Sale – Any Condition
Any Condition iBuyers are a great resource if you want the convenience and certainty of a cash offer, but your property needs additional renovations. Any Condition iBuyers purchase properties “as-is,” so all Preparation and Repair expenses are factored into their offer amounts. These buyers specialize in renovations, so they can usually make repairs more cost effectively than the seller, and they pass along those savings to you. Any Condition iBuyer offer amounts may be lower than other options, but your net proceeds may be higher than if you paid for repairs and renovation. Any Condition iBuyers can complete the entire process, from offer request to close, in just a few days.
Access Samson Instant Offers HERE.
Seller Solution Quick Guide
What is the benefit of using Samson Instant Offers?
Samson Instant Offers enables you to see all your options – whether that be iBuyers, bridge solutions, cash investors, or Any Condition Buyers – you select what works best for you!
Open Market Sale
Selling on the open market exposes the property to the greatest number of buyers, often resulting in the highest sale price and net proceeds to you. Every home is eligible for sale on the open market. Properties listed for sale on the open market are still eligible to receive cash offers.
Bridge Solution
Bridge programs enable you to buy your next house before selling and moving out of your current home. You're enabled to find a new home, then move when you are ready. Some bridge programs allow you to access the equity in your current home while still living in it. Bridge program service fees (about 2.5%) should be taken into account, and not all properties and sellers are eligible.
Instant Sale
"iBuyers" usually purchase properties that are in good condition at close to the open market price, with cash. They buy "pretty houses" and rent them out, investing for income and appreciation. They charge service fees and for preparation and any repairs necessary to lease the home to a tenant. Closing costs are comparable to an open market sale. iBuyers enable you to sell without showings or open houses. And iBuyers close on your timetable, often more quickly than selling on the open market.
Instant Sale – Any Condition
Any Condition iBuyers are a great resource if you want the convenience and certainty of a cash offer, but your property needs additional renovations. Any Condition iBuyers purchase properties “as-is,” so all Preparation and Repair expenses are factored into their offer amounts. These buyers specialize in renovations, so they can usually make repairs more cost effectively than the seller, and they pass along those savings to you. Any Condition iBuyer offer amounts may be lower than other options, but your net proceeds may be higher than if you paid for repairs and renovation. Any Condition iBuyers can complete the entire process, from offer request to close, in just a few days.
Access Samson Instant Offers HERE.
