When selling their property, homeowners usually start by contracting a real estate agent and beginning the lengthy process of home staging and renovation. But when owners need to sell quickly, this is not the best strategy. Real estate wholesalers are professionals who specialize in making quick sales. Plus they save owners thousands of dollars in costly and unnecessary repairs.
Selling a house to a professional real estate wholesaler such as "we buy houses" can save buyers the costs in both money and time of selling a house through normal channels. Many house-selling strategies are expensive and do not provide solid return on investment. For instance, owners often remodel or renovate homes in preparation for sale. But good long-term investments may actually be time and money wasters in the short term.
Renovations and redecoration are a costly but ineffective investment for a sale, particularly when time is of the essence. Additional bathrooms, for instance, are considered a good way to increase the sale price of a house. They are also are a fairly quick renovation at a reasonable expense. However, new bathrooms generate a 58 per cent return on investment on average according to Realtor Magazine. Kitchens are an even bigger and more time consuming investment. While the rate of return is better, the upfront cost is prohibitive and the process is often long and drawn out. Extensive repairs are often not worth the buyers time and money, even in a long-term sale. Because buyers are generally considering cosmetic appeal, a new roof, furnace or insulation will not produce a high return on investment. These types of repairs are best left to companies like we buy homes, real estate wholesalers that specialize in investment properties.
Working through an agent is especially expensive and unnecessary when a quick sale is needed. Commissions of up to 6 per cent are standard and most agents want the best price possible for their own gain. Agents must also work through brokers and buying agents, another time-consuming process. When time is of the essence and price is on the line, paying for a real estate agent is an unnecessary expense. The promise made by real estate wholesalers is that "flip a house fast." For home owners looking to sell in a hurry, contracting a real estate wholesaler makes sense. It saves on costly repairs, renovations and real estate agents that slow down the process and end up costing money in the end.