You have seen the ads. “We Buy Ugly Houses” or “We will Buy Your House for Cash. No Hassle. No Realtors. No Problem”. Or you may be lucky enough to own a home in one of the many “hot” neighborhoods in the Denver area and had builders knock on your door offering you a suitcase of cash to buy your home. If you think this looks like a great deal STOP! These companies do not have your best interest at heart. They prey on the elderly, the ill-informed and the desperate. They are hoping their promise of a quick buck will convince an unsuspecting homeowner to give up their most valuable possession. They then turn around and make a quick profit on your mistake.
Let me explain how it works. These companies and builders are not rookies in the real estate game unlike most homeowners. Unless you do this job day in and day out you can hardly be expected to know where and which way the market is headed. These companies know. And they know by targeting as many homeowners as possible, a percentage will jump at the chance for some quick cash. Little does the homeowner know the price they are offering is well below market value and that they already have plans for your home. Whether re-sell it to an investor, fix-n-flip it or outright tear it down and build something that will ultimately sell for several times what they paid for the property. These companies are in it for the profit. Not to help the homeowner. Without competitive offers, the homeowner is usually none the wiser.
Let me share a story about a client I recently worked with. Her mother had lived in a home for over 60 years in what is now one of the hottest areas in town. When her mother’s health turned and she was forced to be placed in Hospice, she asked me if I could help. Some builders offered $350,000 for the small old house and she could not believe her luck in an offer so high. The ugly house people offered a few thousand higher and she wanted to get my opinion if that was fair. After doing some research and walking the neighborhood I was not surprised the market value was $455,000……$100,000 more than what was being offered by the “sell it to us quick” companies. In short, I put it on the market and we went under contract in 2 weeks and ultimately sold it for $448,000.
This similar scenario has played out several times with my clients over the past couple years as the Denver housing market has exploded. My question is how many homeowners got cheated out of equity by leaving it all up to what these companies said their home was worth.
The lesson here? Yes I understand commissions and the “hassle” of selling your house is hard to swallow especially in the above emotional case, but hiring a trusted real estate professional can mean thousands more at the closing table. Don’t let those companies take your thousands and laugh all the way to the bank.
Author:Jeff McGahey Phone: 720-309-2059 Dated: March 9th 2016 Views: 945 About Jeff: As a Colorado native, real estate broker since 2006, and real estate investor for over 15 years I ha...
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