If you need to sell your house quickly in Memphis, Tennessee, one option to consider is selling it to home flippers. If your home is under foreclosure or has some serious damage, traditional real estate agents might not want to go near it. Home flippers, on the other hand, work with all types of houses, even those in bad condition.
Here’s all you need to know about home flipping and how it works.
What Is a House Flipper?
House flipping is a business strategy that aims to generate a quick return on investment. As opposed to traditional real estate investing, the goal of home flipping is not to hold onto a property in the hopes of home prices in the area rising in the future nor use it as a rental property.
Instead, house flippers look for homes that they can buy for cheap. Some of these homes are in a bad state and require serious restoration. However, the homeowner might not have enough funds to afford those repairs before selling the house.
At other times, the homeowners need to relocate to a new city or country quickly and want to close the deal as soon as possible. In those cases, home flippers can make a cash offer. That offer might be a bit lower than what the seller would get when selling through a realtor. Nevertheless, they can get a lot of cash quickly.
Who Are the House Flippers in Memphis?
There are many house flippers in Memphis. You may find that some work independently, while others work with partners. Some are experienced, while others are beginners. Likewise, some always buy with cash, while others might try to get a traditional loan, though even those flippers try to put down a significant down payment to cut down on fees.
Benefits of Working With a House Flipper
There are several great benefits of working with a home flipper.
One of the top advantages is the ability to sell your house as-is. If you have water damage, fire damage, mold, burst pipes, foundational issues, or some other damage, it can be tough to sell your house to real estate investors on the traditional real estate market. You will have to pay for those repairs first, or lenders won’t approve the buyer for a loan on your home.
Home flippers calculate their potential gross profit based on a home’s “after repair value,” or ARV. In other words, while your home’s sales price might be worth X now, it will be worth Y later.
Of course, the buyer will need to remodel and repair your home first, and they will calculate the costs of that as well to make sure there are decent potential profit margins.
Furthermore, many home flippers will pay in cash. Not all property investors will be willing to do that, but a good home flipper knows that paying in cash can get them the best offer. When you sell your house for cash, you can typically save on closing costs.
Avoid These Mistakes When Selling to a House Flipper
Before deciding to sell your home to a flipper, it’s important to learn about common scams in the industry and mistakes to avoid.
The first mistake is not knowing your home’s true value. Even if your home is damaged, or you need to sell it quickly, that doesn’t mean you should accept offers well below what it’s truly worth. Not all home flippers are trustworthy, so it’s best to work with companies that buy houses in Tennessee that you can trust.
Look for a company that has good reviews. Its owners should be transparent about who they are. Some home flippers might give you a good offer when talking with you in person or on the phone, but then make a different offer in the written contract. If you don’t pay attention, you may inadvertently sign the contract and settle for the lower offer.
Another mistake is selling to beginners. There is a lot of hype about home flipping, causing many people to turn to it in the hopes of making a quick buck. However, these inexperienced home flippers don’t usually know what they are doing.
Beginner home flippers might not have the necessary funds to pay you in cash. They might try to invest in a property by taking out a loan on it. That can lead to extra closing costs and unnecessary delays in the sale. Instead, work with cash home buyers in Memphis who are decisive and can close the deal and pay you within a week.
Should You Work With a House Flipper in Memphis?
That depends. If you have the funds to take care of necessary repairs by yourself, you may be better off paying for those repairs and then selling your home for much more than what it is currently worth. However, those repairs can cost tens of thousands or even hundreds of thousands of dollars, depending on the extent of the damage and the size of your home.
On the other hand, if you don’t have any time to wait and are in a rush to get money for your home, you might want to work with a professional house flipper. Selling your house by yourself or working with a real estate agent can take months. We, on the other hand, can give you a quote and close the deal within days.
Alternatives to Working With House Flippers
Instead of working with house flippers, you can try these creative ways to sell a house or the following alternatives.
Selling to Home Investors
Home investors look for properties in areas where the real estate market has a promising future. They may even be willing to purchase a home that is in bad condition and fix it up. They might not sell it within a month or two like a regular home flipper, but you can still get money for your home.
However, not all real estate investors are interested in homes that have a tax lien or require a lot of repairs. It’s just a lot of hassle for them, and many would rather purchase rental properties that they can immediately rent out to generate passive income.
Selling Your Home to Cash Home Buyers
While many house flippers are cash home buyers, and the two concepts overlap frequently, they are not the same thing. Some house flippers might not pay in cash, and some cash home buyers don’t have any intention of flipping the house for a quick profit.
Some cash home buyers are long-term investors who are willing to pay in cash because they get quicker and better deals that way.
Others are individual homeowners looking for a home quickly and have the cash on hand to pay you upfront. If you are selling to individual homeowners, however, you have to vet them properly to ensure they truly do have the funds to buy your home and are serious about the sale.
So, should you work with a home flipper? If you need cash quickly, want to close the deal without any hassle, have a lien on your home, or own an old home that is in urgent need of repair, you should consider selling to a cash home buyer. It’s the easiest way to get your home off your hands.
Just make sure you are working with a reliable company that has experience buying homes for cash and will give you a fair offer. We’ll buy your home, regardless of its condition – just call us for a quote and decide on a closing date.