Not All “We Buy Houses CT” or “Sell My CT House Fast” Companies Are The Same.

Yes we understand the doubts and the hesitation doing business with a “We Buy Houses” company. We know most of these companies lowball people, and take advantage of others in distressed situations. Also most people think that it is in the nature of this business to offer lower than market value for houses. Let’s talk about this:

The truth is: Yes, investors (sometimes) buy houses below market value. There would be no margin for profit otherwise. However most people stop there. That is all they see and read.

But dare to dig deeper and discover the details about such a transaction!

People often think that home investors take advantage of people’s misfortune. Here is where we aim to prove that notion wrong. Disclaimer: not all “We Buy Houses Quickly For Cash” businesses adapt the same code of integrity and honesty we do! I find the best way to explain things is through an actual example. Please know that this is not always how things work out, as the numbers depend on the condition of the house and sellers circumstance.

My effort will be to show that we do not lowball offers simply because the seller is in dire need to sell.

So Let’s Dive In

Imagine you have a house that you are considering selling. After a thorough market analysis, we determine that your house is worth $100K in it’s current condition, (we just picked a number).
From our market analysis we also concluded that if the house was completely fixed up and updated, the market value would be $130K (again, we picked a number for this example).

After a walkthrough we realize the house needs, oh… let’s say, a new roof ($20K in repairs).

So here are the numbers:

House As Is: $100K

Repairs Needed : $20K

ARV (After Repair Value) : $130K

OPTION 1: Listing it with an agent.

Listing it with an agent would require you to make repairs.

You want the most money for your house, and that is why you list it with an agent correct? Then what is the point listing it with an agent if you do not bring the house to fixed condition so that you CAN get most money for your house?).

As you are responsible for the agent’s fees and commision, the agent will most likely require you to make repairs. (the more repairs, the better the condition of the house, the higher the sell price and the more the agent will get in commision , 6% of sales price.

You would need to replace the roof ($20K) to be able to list the house at ARV of $130K. However, no one makes offers on houses at ARV. Offers come in lower. Then seller and buyer negotiate a settling price (under $130K). But for the sake of this example let us assume listing price is offered. Keep in mind that the After-Repair-Value (ARV) is simply what similar/comparable houses are sold for in your current market and vicinity. This is not the appraised value of the home.

Now here is what needs to happen:

Seller would pay for repairs out of pocket before even listing the property

Seller needs to do the work him/herself, or hire contractors.

Managing contractors may be a hassle in itself

Buyer would need to get their financing in place which may or may not go through.

Lengthy process for seller to receive their money.

Seller pays closing costs, selling fees, holding fees, maintenance fees, mortgage etc. for as long as the house stays on the market.

However, seller still needs to pay selling costs for the transaction, which is on average 19% of the selling price:

Sales price reduction: 7%

Agent fees: 6%

Closing costs: 3%

Other costs ( Inspection, deferred maintenance, etc.) : 3%

Thus:

Selling costs are: $130,000 x 19% = $24,700

Thus actual seller profit: $110,000 – $24,700 = $85,300

(This number may not be In cash for your house)

OPTION 2: Selling to a home buyer, cash for your CT house.

Here are the numbers again:

House As Is: $100K

Repairs Needed : $20K

ARV : $130K

From these numbers we could present you a fast cash for your house offer as follows:

We could present you an all cash offer at $80,000for your House in Connecticut.

We would fix that roof (for $20,000). Total spend thus far would be $80,000, + an extra $20,000to fix the roof.. = $100,000.

Selling it for $130,000 ARV would net us $30,000. From that $30,000 we subtract all the closing and selling fees still netting us a profit of about $2,000 to $6,000.

Notice that our profit did not come from you. We did not make our profit by taking advantage of you, the seller. We make our profit off the buyer after we flip it, buying the property from us.

Doing transactions this way truly is a win win for everyone involved. You will get cash for your Connecticut house and walk away free and clear and hassle free.

The Evaluation.

With an agent you would have netted $85,350 dollars, but:

You would have to deal with contractors and their annoyances

People walking through your house for as long as the house is on the market.

Your house would be listed between 3 to 8 months

Your house may never even sell at the price you set.

In the meanwhile you are still responsible for upkeep, bills, etc.

You may not even receive cash if the house sells.

We would have offered you $80,000 dollars:

You would get cash in a few weeks.

No headaches, no hassles. We do all the repairs

No need to clean. Take what you want and leave the rest. We will take care of everything

No waiting on buyer financing.

So yes. We did offer a below market value for your house. But you would have received a (net) below market value for your house also if you had listed it. Getting a market value number for your house is offset by the repairs and all other costs associated with listing it with an agent. So the fact is that although you received a market value for your house, you have spent a significant amount of money on repairs and other costs, and thus your net take home for the transaction is still a below market value!

If you want to sell your house, just fill out the quick form below. Or give us a call right now at (203) 529-4712.

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"They are very knowledge and offer the best solutions that met my family's needs."

— Mel & Jay

"They were great! - Why? – Because the deal was smooth, fair, and went through with complete “consideration” of my needs as the seller of the property.
I have already recommended to other interested property owners in the area to give them a call."

—Mr D. Gray

"They gave us an offer and then suggested 3 of their competitors to also request an offer from, so that we would be sure we would get the best offer. In addition they recommended 2 agents for us to find out how much the property is worth as is on the market, so that we know we wouldn't be taken advantage of. I have spoken to about 5 we buy houses companies, and NONE, absolutely NONE, recommended us to ask for more offers from other companies. Other companies were hard to get in touch with, and all they cared about was their profits. Jerryll and Dixie are beyond anything we have encountered in their business niche. HIGHLY suggest to get in touch with them. Forget the others. You will thank me!"

—Mr Piatti

"Jerryll was great to work with. Honest, helpful and always looking for creative ways to create win-wins. I wish everyone I dealt with was as upfront as Jerryll."

—Mr Godes

" He was wonderful, absolutely wonderful and I couldn’t have asked for a better person to help me get rid of the house. "

We are a real estate solutions and investment firm that specializes in helping homeowners get rid of burdensome houses fast. We are investors and problem solvers who can buy your house fast with a fair all cash offer.