Sell My House: Do You Guys Really Buy Houses in Syracuse NY?
This, of course, is almost always one of the first questions our potential clients ask us when deciding if they should sell their house to a real estate investment firm. The simple answer to this question is YES, however, this answer is not always simple. Notwithstanding, I will do my best to portray exactly what a real estate investment firm does, why they buy houses and what you can expect when you sell your Syracuse NY home to one of these companies. The concepts and procedures that we go through today, will give you a better idea of how these companies who buy houses in Syracuse NY, determine the prices they will be offering to you.
Let's face it, these companies do not exist just to purchase homes at retail value. They are looking to offer you a convenient way to sell your home, allowing your home to become a liquid asset while making a little bit of profit on their end.
Where It All Starts
The reason that you are at this post is due to the fact that you have been touched or have seen a marketing piece from a real estate investment company stating that "We Buy Houses". This means that you were either contacted because you were on some type of list, you saw a marketing piece (such as a flier, bandit sign, billboard, radio commercial, mailing etc.) or you were searching on the internet for a simple but convenient way to sell your house.
Whatever the reason maybe, you ended up here and I am sure you are wondering how this all works and you may even be a little skeptical about the whole thing ...... and we do not blame you.
All businesses are not built alike. You will always find companies that will try to pull one over on you or take advantage of you. This is why we advise everyone reading this to do their own due diligence when searching for a real estate investment firm to sell their house too. You want to look for a company that you can trust, has experience, actually, buys houses and has references to prove it.
Why Do You Guys Actually Buy Houses in Syracuse NY?
We figured that this is probably one of the question's you guys are looking to have answered. I imagine your thinking, why would anyone just go around and start purchasing houses... it just doesn't make sense. The fact of the matter is that the business or individual that has reached out to you is looking to purchase your property at a discount. They are looking to buy your house in Syracuse NY so that they can use it as an investment vehicle to add to their portfolio. These real estate investors will be looking to:
Rehab and sell your property (Flipping)
Purchase & resell (No rehab needed)
Assign contract to another investor for fee (Wholesaling)
Rehab & rent
Subject 2 & rent
And an assortment of other creative solutions
How Do I Know How Much I Will Be Offered For My House
Now, this is the tricky part because each one of these strategies will produce a different equation that determines what there MAO (maximum allowable offer) for your specific property. This will also depend on how motivated the seller of the property is (motivation = urgency for reason of selling). Each real estate investment firm will have a different percentage calculation that they will use to determine their offer on your property. This will usually depend on how much money they want to make on the property, how much the repairs costs this specific firm (material & labor), what the full market value of the property is and all of the fixed (holding) costs associated with the property. So let's go over some quick examples.
1) Wholesaler - A wholesaler is an individual or business who is looking to put your property under contract at a discount in order to assign (or purchase) the contract. A wholesaler's intent is not to rehab or rent the property but to resell to a cash buyer (another investor) for a fee. A simple formula a wholesaler may use to determine the offer price for your home is:
ARV (After Repair Value) - Repair Costs - Holding Costs - Closing Costs - Real Estate Commissions - Investor Profit - Wholesale Fee
A quick calculation a wholesaler may use to evaluate your property would be: ARV (After Repair Value) x .65 (% depends on area and investor)
Remember a wholesaler may not always be in a position to actually buy your home but they do know other's who are & that is the service they offer.
2) Rehab & Sell (House Flippers) - A house flipper is an individual or business who uses their own money, private money or hard money to purchase properties in "cash" so that they can close quick and give the seller beneficial terms in exchange for a discounted sale. A house flipper does have the intent to purchase your home and does intend too. However, they are looking for the property to be discounted enough as to where they can purchase, rehab, hold and still net a profit on the backend. The formula house flippers use to determine the maximum purchase price for your home is similar to wholesalers (excluding the wholesale fee)
ARV (After Repair Value) - Repair Costs - Holding Costs - Closing Costs - Real Estate Commissions - Investor Profit
Remember these values will differ depending on what the investor intends to do to your house, how cheap their labor is and where they get their supplies from.
3) Landlords - A landlord is an individual or business (who holds properties) looking to purchase properties that meet their specific cash flow, ROI, and several other minimum requirements. Landlords typically have the ability to pay more for a property (depending on the condition) because there are typically fewer variables involved since in the end, the tenant will be paying the majority of these expenses.
The formula to determine how much a landlord or an investment company looking to hold the subject property will vary and will take to much detail to explain. Head over here to learn more about how landlords determine how much they can offer for a property.
These are the basic guidelines that these businesses who buy houses in Syracuse NY will use to formulate your purchase offer.
Why Would I Sell to You?
This service or solution is not for every homeowner or property owner. This service is only meant for homeowners who have some type of motivation to sell. They are in a situation where there is an urgency or a necessity to sell. This motivation or urgency can come from several different areas, such as:
Delinquent property taxes
Leaving the state
All of these issues can cause your home or property to become a burden. The reason that you would sell to a real estate investment firm who buys houses in Syracuse NY is because they have the ability to purchase your property in cash. This is very beneficial to the seller, especially with the increasing requirements from lenders for bank financed buyers. A cash purchase will allow the buyer to:
Get a check in less than 20 days
Not have to list and wait for a buyer
Eliminate holding costs
Avoid making repairs
Pay no real estate commissions
Pay no closing costs on the sale
And much more
These are terms that you can only get from a cash sale. So if there is an urgency to sell your property or a specific motivation that you have to sell then this is your best option.
Real estate investment firms plan to exchange these beneficial terms for a discounted sale and also relieve the grief of owning this property. The main goal for the real estate investment firm is to create a win, win situation for everyone involved.