Selling your home can be a lot. This is why Zillow and We Buy Ugly Houses and other modern tech-enabled house flipping companies can be enticing to harried sellers. They offer a quick and easy path to moving the property with minimal time and fuss. What’s not to love?
But are these quick-fix solutions worth it, and is there a caveat in the convenience? Let’s take a look at how they work.
How house flipping companies work.
In a nutshell, the house flipping company buys the house for you, as it is, barring any significant issues. Then, if the house needs cosmetic updates or necessary repairs, the buyer — as the new owner — handles these in preparation for bringing it back to the market.
For sellers, this fast-track to a sale eliminates many of the headaches that often accompany selling a house on an accelerated timeline. No staging. No pressure to keep your home looking pristine and show-ready at all times. No nosy neighbors parading through during the open house. Just sell it and be done.
What’s the catch?
Before you click on that agreement, there are a few things to know.
Basically, these companies are in the business of flipping houses. For you, that means you’ll likely sell your home for a below-market price. Their marketing materials emphasize the fact that you’re getting out of paying the commission fee (which can run anywhere from 6%-8%). But you may come to the unpleasant realization later that you walked away from more money than you bargained for. Once you factor in the convenience fees (which can be just as high as a standard commission) along with the below-market prices, you could be paying a lot just to avoid a bit of effort.
Is there anything wrong with wanting to sell quickly? Absolutely not. There are many legitimate situations where it makes sense to get out and leave the hassle to someone else.
However, we think sellers deserve more transparency so they understand their options to make informed choices.
Need to sell quickly? Consult with a Realtor®
A Realtor® can bring the boots-on-the-ground perspective of a local market you need that these internet-based sellers can’t, offering you better insight into your property’s selling potential. For example, you may learn through your Realtor® that your house is actually in a neighborhood where demand is high with first-time homeowners. Which often means you can sell it on a quick timeline without having to put much time and effort into preparation. When the scenario gives you the financial advantage, you may decide that it would be worth the effort to get ready for showings. (For more on this, read Should You Sell Your House As-Is, Or Should You Renovate?”
Or maybe the get-ready tasks are your big obstacle, such as painting the first-floor interior and updating fixtures. A resourceful Realtor® can get you in touch with vetted professionals who can get the job done for you quickly.
Not all Realtors® are alike. Yes, some are more focused on completing transactions. But some Realtors® are property specialists because they not only show and sell houses, they also own and manage properties. Their insights and deep understanding of the local market can benefit you, even when your situation is more complicated. These are the professionals you want to turn to so you can make the best decision for your property.
Looking for advice or trusted professionals to help you get your house ready for market? Reach out to Scott Haubrich at BuyRentSell.com today by calling 612-298-5400.