You see them on most street corners and high up the telephone polls at unreachable heights, the BOLD-print signs that say "We Pay Cash for Houses". It's usually followed up by a phone number and little else. Catchy, but who dares call these numbers and gives them way too much information?
I heard a lady call into a talk show today to ask if it was worth calling one of these numbers to see what they're gimmick is. The purpose of these signs is to get a homeowner desperate to sell to practically give their home to one of these investors. They are hoping that the caller is potentially a few payments behind and must get rid of it quickly. Or they are hoping that an owner does not have enough cash to fix up their property with needed repairs so it can be put on the market with a REALTOR.
The Answer is "What is your situation". Expect that the investor is going to offer well below market value. They will have to put some money into it to make it desirable to either put it on the market for sale at market value or turn it into a rental property. If you are in need of selling due to a divorce, death, loss of job or disability and you have a low Loan To Value (LTV), then it might very well be worth it. But before making that decision, take the time to meet with a REALTOR to have a free Comparative Market Analysis (CMA) done to make sure that is the best decision.
No one can make that call for you. But come to the table prepared with a current market value evaluation and know your lowest point. Know what you are willing to gain and what you are willing to lose.
Term: LTV is the outstanding loan balance divided by the market value.
Your 1st Hand Relocation Expert in Johnston County and Clayton, NC
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919-637-0004 Tracy@TracyRiba.com
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