What is the usual percentage someone will offer to buy your home as an investor?
Posted by admin in Finance Thursday, 8 December 2011 22:24 5 Comments
I live in Texas and have been getting a lot of offers to buy my “ugly house” . What is the usual percentage of the market value do these type of companies usually offer. It seems to me they are low-balling pretty often and the offers they are making do not make sense to me.
Thanks for the obvious answers. I am wanting to know what percentage the average investor is looking at. I realize they are in it to make money but how low do they usually go.
They will NOT give you appraised value.
They are there to make money – not to help you.
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Well, yeah. That’s how they make money. Buy low – sell high.
Edit: With any real estate transaction, there is no fixed price level. A buyer tries to pay as little as he can, a seller tries to get as much as he can. If the buyer thinks you’re a sucker, he may make a much lower offer than he might to someone he percieved as more sophisticated.
If you want to sell your house, and you are getting a lot of offers, your asking price is too low or there is something valuable about your property that you don’t realize.
Play the potential buyers off against each other.
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Edit 2: Landlord, what planet are you from? Offering someone 60% is legitimate? Not a scam?
sorry but seems like you don’t understand how the housing market works. “market value” is whatever a qualified buyer is willing to pay. if your house is on the market for a while and the only offer you get is a low-ball deal from an investor, the investor’s price is the market value. lots of sellers have priced their houses too high in this market because there are so few qualified buyers. when investors make an offer, they don’t base it on any particular reduction off the asking price, like 10 or 20 percent. they base their offers on what would allow them to make a profit if they rent or resell the property.
There isn’t a standard percentage. It’s all an individual thing and it depends on what they are looking to do.
Some are happy making a 5% profit net while others want a more substantial gain. I mean netting 5% on a $300,000 property is $15000. Do that 3 or 4 times a year and that’s a great supplemental income, especially if you have the cash, a good market, and a good agent.
They typically offer 60% of the appraised value, in cash. I am surprised no one knew this, it is pretty universal, at least in the US.
They are usually completely legitimate too. The investors that are into this self monitor and take out scammers really quickly.