We Buy Houses . . . . A Realtor Marketing Tool?
A friend of mine said that she may want me to list her house, but at the same time, she told me that she had called the number on one of those signs that are plastered all over town that states "We Buy Houses".
She said that they made her a very good offer. I questioned her to make sure that I heard her correctly and she repeated that they made a very good offer. I started to think that she did not have a good idea of the value of her home or of what they were actually offering.
When I went to her house to give her my presentation, she showed me the paperwork from the "We Buy Houses" offer.
Indeed, the amount which they guaranteed that she would net was a very good number.
As I looked through the paperwork further, I found that this was actually a real estate agent from a reputable nationwide real estate company.
But it was not an offer to buy, but rather it was an offer to list the property, whereby if they sold it for a certain amount, then she would net the amount which they implied was guaranteed.
Additionally, he was going to charge 7.0% commission.
Also, he strongly suggested that she consider auctioning the house. When I asked if she was guaranteed the same net if the house were auctioned, she seemed very uncertain.
As far as the price goes, it was probably too high. I am guessing that he determined a price prior to seeing the house based on a few comparable properties. However, although her house was okay, it had no updates and few amenities such that it did not compare well to the other properties.
I do not look favorably upon the real "We Buy Houses" people as a means of selling most houses, especially this person's house, however, this agent was giving them and real estate agents in general a bad name.
Some degree of honesty over slick talking would have been appreciated.