*Strategic folding methods were used in order to conceal all identities*
I recently received what appeared to be a hand written letter from an investor wanting to $BUY$ my house. I purchased this property over a year ago, and haven’t even spent a single night at the place yet, due to a rather large remodel, but I don’t expect the investor to know any of this! Anyhow, I have received a few letters similar to this since I bought my new home, and had nothing better to do this morning, so I did a little digging to see what these guys were all about…
– Thought one, is this dude actually a real estate agent? A quick search in MLS tells me that no, the individual who sent me this letter is not a real estate agent. Not that this is really a big deal or anything, I was simply curious.
– Thought two, how is this guy marketing/labeling himself online? After a quick Google search, I found what I needed. His primary method of promoting himself from what I was able to see, is by telling home owners that they will save money by not having to go through a real estate agent. No fees, no signs, no Buyer concessions etc…
Since I’m not much of a thinker, I stopped at thought #2, and decided to give the guy a call to see how the process worked. I was lucky enough to get him on the phone, and he gave me a little more info. This gentleman mentioned that there were agents on the team that provided him with accurate comps of the properties that were being flipped, but it was basically just a straight up sale between him, and the owner, no middle man etc… I thanked him for his time, and information, and went on my way.
I’m left wondering how much he has to undercut homeowners in order to make a profit, and how many individuals who have received a similar letter, actually follow through with this method, rather than hiring an agent to assist them with the sale. It’s true, the average Seller of a home is forking out roughly 7-8% of the total value of their home for real estate agent fees (both sides), and closing costs, but something tells me they’d still be walking away with more cash in their pocket.
The nice thing about living in ‘Murica, is that we have options. All I’m saying here, is that if you receive one of these letters, and are contemplating selling your home this way, get a second opinion from a real estate agent, you have absolutely nothing to lose!