Why would any sane person take less than full market value for their house? They must be crazy. Perhaps Express Homebuyers duped or cheated them into selling their house. These are the types of questions and comments we see on social media all the time. And it’s possible that even if you’ve not asked it outright, you’ve thought in your head.
The reasons why someone would sell to Express Homebuyers vary greatly. It’s important to understand that just because selling to Express doesn’t make sense for you, doesn’t mean it’s not a good idea for someone else. Express Homebuyers doesn’t claim to be a good fit for everyone. Our Homebuying Specialists make that clear right up front on the first phone call. But for the people for whom it is a good fit, it can be lifesaving.
One type of homeowner who sells to us is someone who’s lived in their house for many years, perhaps they’ve raised their family there. Now all the kids are grown and moved away. It’s time for them to retire out of state or move into a senior living facility. While the house is in livable condition, nothing has been updated. The roof is 20 years old. The HVAC system is on its last legs. A water leak was repaired, so it’s not still active, but the damage to the downstairs ceiling was never fixed and there’s some evidence of mold.
In order to sell this house for full market value, this homeowner is going to need to spend a significant amount of money on making repairs and updates to completely bring the house up to 2016 standards. Not only do they need to come up with substantial funds, they also need to find and vet trustworthy, reliable and capable contractors and then stay on top of them to make sure they’re doing the work according to scope.
Oh, and they’ll also need to get their belongings out of the house before works starts, so they’re not in the way. Imagine how much a family accumulates over 10, 20 or 30 years of living there. That means they’re either paying for storage or also investing in a new living space at the same time they’re paying for repairs at their old house. So even if they HAVE the money (and the majority of home owners don’t have anywhere near the amount necessary for such an investment), most people don’t have the energy or know-how to take on such a daunting project.
Why can’t they just sell it on the market as-is?
That’s always an option. However a large number of home buyers in today’s market aren’t looking for fixer-upper projects. People are busy and they want something move-in ready. The buyer pool for fixers is small. Putting a house like the one described above on the market in hopes of selling it as-is takes patience because it could take many, many months before a buyer comes along. And if that buyer needs to get bank financing, that’s a whole other ball of wax that could take up several more months.
Furthermore, if and when such a buyer does come along, this home seller will have to significantly discount the sale price to reflect the amount of work that needs to be done.
For home sellers who don’t have the time or patience to wait months for the right type of buyer to come along, selling to Express Homebuyers makes perfect sense. Yes, we won’t pay full market value, but neither will an individual who plans on fixing it up himself.
What Express WILL do is give the home seller a cash offer and the option of closing as soon as they get clear title, which could be in as few as seven days. Homeowners always have the choice of whether or not to take this cash offer. As mentioned previously, selling to Express is not for everyone.
Once we buy a house, we come in and spend money to make extensive repairs and updates to bring the house up to today’s standards, both inside and out. These renovations not only increase the value of this particular house, thereby allowing us to turn around and sell it for full market value, they also increase the value to the neighborhood. Believe it or not, on several occasions, neighbors have come up to our crews working on a house to share their appreciation for the efforts to improve the community.
Now you know at least one of the reasons why a smart home owner would sell to Express Homebuyers, even if it’s not the choice you would make.