Hey everyone, it’s Ed at West Coast Property Group. Today’s video blog for the week, Friday, Cash for houses in Eugene, is it the right fit for you?
Let’s go over a couple of little things. I know everybody has seen the yellow bandit signs alongside the freeway at the off ramp, Highway 126 and Mohawk Boulevard here in Springfield. Exactly what are they? They’re yellow signs. “We buy houses Eugene”, “Cash for houses in Eugene”.
Is cash for houses in Eugene right for you? Let’s talk about a few things. The individuals and the companies putting up the signs, they’re investors. That are seeking a quick, undervalued property that they can capitalize on and revitalize, and put back on the market with a little bit of margin.
Why do they do that? They put these signs out, to get you the motivated house seller to call the investor. It takes a lot of the legwork out and the research of locating distressed properties, and it really focuses in on the homeowners that are willing to and need to sell fairly their home fast and quickly, hence “Cash For Houses In Eugene”.
The key target market includes homeowners in some sort of negative financial situation. This includes people that are facing some bankruptcy, possibly foreclosure, medical issues, divorce, and damaged properties in some sort of disrepair. Even fire burn, we come across a lot of those as well. They hope to find these properties, maybe transferring ownership in a probate sale. They can be vacant. They can even be listed and ready to expire. Heck we find vacant house every day and cannot explain why they are empty.
The Thoughts Process Behind the Offer
Let’s go over what that thought process behind the offer for cash for houses in Eugene. Because the investors are seeking properties for quick turnaround and profit, they’re going to want motivated sellers and these properties that are in distress that can be quickly repaired and updated, and can turn around for sale in a short amount of time.
As a seller, this may or may not be in your best option. The buyer is looking to ease your pain and burden. They’re looking to solve a problem and provide answers to the questions that you might have. They know that you have some emotionally binding stress, and it’s going to require some sort of a quick sale.
As a result of the offer that they might present to you, would be for maybe remaining of the mortgage balance, irrespective of the value of the home. The investor may want to do a hybrid purchase. There are literally dozens of strategies that we could use to purchase the property. At best the investor’s basically going to want to get your property at a wholesale cost, which is often below fair market value by at least about 30%, 35% discount from fair market value. It depends on how much work your property is going to need. Not every property is going to meet that type of a situation. This discount is needed because of the holding costs, taxes, repair to update cost and closing fees, not to mention real estate agent commissions. The investor pays all these costs, not the homeowner.
Consider Your Position Before Negotiating
One thing you want to do is consider your position before entering into negotiations. Keep in mind that there’s a cost to keep a home. Okay? Everything from mortgage payments, insurance, taxes, they have to continue to be paid while your own that home. The longer you delay the sale, the longer you’re going to have to pay for those costs. We call them holding costs. It includes utilities, maintenance, and upkeep.
If you do the math, and consider the average time it takes for a home to sell on your market … Here in Eugene it’s about 52 days at the tops. Things are pretty busy right now, houses are selling fairly quick. Based on the average pricing, you will make up the difference in the cost of maintaining a home for the extended timeframe. Your situation may also be urgent or in a situation that you need to sell because some sort of a foreclosure or a tax lien that you need to pay. Consider all these factors before we look at any of these offers.
Maximizing Your Sale Value
Maximizing the sale value. It doesn’t take a lot of research to get an idea of what the property’s fair market value (FMV) is. If you really want to know, pay $550 for an appraisal or simply speak with a real estate agent that is really good with evaluating comparable’s that are in your area. They will give you a good idea of what their current condition and the status of your home would be, and what the going market value would be.
Once you know what that estimated value is based on the current market conditions, look what can be done quickly and inexpensively to increase the value of that property. Do what investors would do. Basically it starts with just a really deep, deep cleaning of the property inside and out. Make sure the windows are clean and they sparkle. Clean up the landscaping, trim the trees and pull the weeds. Possibly replace the carpet, update the tiling. Paint the inside, just keep it fresh, bright, and clean.
What investors usually do is they’re going to redo the kitchen, bathrooms, do an appliance package update, paint or replace the cabinets. There is money upfront that they’re going to put into the property, and there is risk in this. That’s why they need to get the property at some sort of a discount, like the 30% we talked about before. Just keep that in mind. The bottom line is, if you can extend your timeline that you need to sell, you can wait for more of a traditional buyer to come along and give you the offer that you’re looking for.
Are There Options?
Keep in mind there’s more than one way of purchasing a house. Many investors want to jump in and say, “Cash For Houses In Eugene“, or “We Buy Houses Fast Eugene“. Really, what does that mean? That means probably wholesaling your house off to the next investor that might actually close on your property. At the end of the day there are quite a few buyers that advertise cash for houses in Eugene, and not all of them will give you a straight answer on how they will purchase your property.
We at West Coast Property Group, we actually have cash equity investors that we partner with, and we actually buy your house. We will do the remodeling, and we will list it and market ourselves. We are vertically integrated and we can handle all the necessary work ourselves.
There’s many strategies to purchase a house. We look at every deal with the eye of, “What does the seller need? What equation do they need solved? How can we best provide a solution for that situation?” We have even had the home owner partner with us while we remodel the property and the seller gets to split the profit with us. There are endless ways to have successful transaction. At the end of the day we buy houses fast in Eugene and we close in a matter of days, if this is a fit for you then we are here to help.
Again, hey, this is Ed at West Coast Property Group. Give me a call at (541)780-2424. We’re happy to help you out and see what we can do. Thanks.