Many sellers use a real estate agent to sell their home on the MLS. However, it is possible to sell a home without a real estate agent and without listing it in the MLS. It is typically called selling your home off-market when you do not use an agent or the MLS to sell your home. Investors are the main buyers for off-market homes and many times buy with cash and close very quickly. I am an investor who buys homes for cash in Greeley Colorado, and many of the surrounding towns (Windsor, Eaton, Johnstown, Milliken, Loveland, Fort Collins, Fort Lupton, Dacono, Firestone, Frederick, Longmont, Berthoud, Erie, Mead, Ault, Nunn, Pierce, Kersey, Evans, Lasalle, Platteville, Gilcrest, Severance and many more). Not only am I an investor, but I am a real estate agent as well. I can offer home sellers two options: sell to me quickly or list on the MLS.
I run a team of ten, who help clients buy and sell homes. When I sell houses for myself or most clients, I am looking to get the most money I can. In some cases, home owners want to sell their house as fast as possible or they do not want to list on the MLS. Homeowners who need money right away, need to move right away, don’t want to make any repairs or do not want showings, may be interested in selling off-market. We help sellers determine if selling for cash to an investor or listing a home on the MLS is the right move for them.
Is it better to sell your home to a real estate agent?
I am a real estate agent who also buys investment properties. I have to disclose that I am an agent and many other items, when I buy a home off-market. I also am regulated by the Colorado real estate commission, while other investors who are not agents are not. This means if I act shady, there is someone buyers can complain to about me. I believe this gives me more credibility and gives buyers more faith in the way I conduct business. I have been licensed since 2001 and never had a complaint against me with the real estate commission.
I also buy houses for myself as rentals or flips. If you run into other investor buyers, they may be wholesalers. Wholesalers get homes under contract and then try to sell the home to another investor for more than they have it under contract for. Many times wholesalers will end up backing out of a deal when they cannot find another buyer, wasting the seller’s time.
You can email me at Mark@investfourmore.com with any questions.
How long does it take to sell a home?
When I am flipping a house I want to sell it fast, but I also want to maximize my investment. Owner occupied buyers, who will be getting a loan are the buyers who will pay the most money for a house. I make sure my houses are in great shape and will qualify for a loan to get the most money I can. When you want to get the highest price for a house, you will have to sacrifice a quick closing and make sure it is in great shape. It can take a buyer over 45 days to get a loan in today’s market. That is after the home goes under contract. It usually takes months to complete the house selling process when going through the MLS.
What options can I offer home sellers in Greeley?
As a real estate agent and investor, I can offer sellers two values for their home:
- What I would pay as an investor
- What the home owner could get if they listed the home on the MLS
Along with these values, I can show the home owner what they would net on the sale of their home in both scenarios. The net value would be how much money the seller would take home after paying the costs associated with selling. The sellers will get less money when they sell off-market, but there will be many more costs associated with selling on the MLS.
Why would anyone want to sell a house as fast as possible off-market?
As a real estate investor, I run into people who are looking to sell houses quickly and getting top dollar is not the most important factor. To many of us, that seems crazy to sacrifice money for a couple of months’ time, but other people have more pressing priorities than money. Below I will explain a few people who need to sell houses right away and want to sacrifice money for time.
- Traditional home owners want to sell off market? I have bought many houses from owner occupants who needed to sell quickly. Most of these homes were for sale on the MLS and were priced very well. In most cases the home owners had not maintained the house well or bought the house in poor condition and never fixed it up. These houses could not qualify for a conventional loan, which made an investor the perfect candidate to buy the house. People want to sell houses quickly for many reasons; job transfer, health, starting a business, funding a business or they just need money. In some cases people don’t want to put their home on the MLS, because they don’t want people to see the condition of their home. An investor is the perfect person to buy houses quickly for cash, but they won’t pay retail value.
- Why would investors want to sell their house off market? Investors also need to sell houses quickly at times. Some investors have rental properties, but have moved away from that property. They are tired of renting the home from a long-distance or paying a property manager, who doesn’t do a good job. Sometimes those out-of-state rental properties are more of a headache than an investment. The investor gets tired of losing money on the property each month and they just want to sell quickly. If a home is rented to long-term tenants, it makes it more difficult to sell as well. Owner occupant buyers want to buy homes they can move into right away, not a home they have to wait for the tenants to move out of. Most owner occupants won’t be able to get a loan on a house with a current lease in place either. The investor who owns a home that is rented will have to sell to an investor who will want a great deal. I have also bought properties that another investor bought to flip. The investor ran out of money or got in over their heads and they just want to get out as well. Partially finished flips are a great way for investors to get a good deal on a house.
- Why would people who inherited their property want to sell off market for cash? I have also bought houses that were estate sales. In those cases the houses were not maintained or updated for many years. The heirs did not want to fix up the home or they just wanted their money as fast as possible. Probate homes are often sold off-market and quickly for cash.
- Why would banks want to sell their houses off market for cash? Some banks and large institutions will sell large pools of properties off market to other large investors. Most of these pools are worth hundreds of millions of dollars and are not advertised as for sale. The buyers are large hedge funds or asset management companies. The advantage of selling large pools is that many homes are sold at one time, without the hassle of selling each property.
How much of a discount will an investor want on off market houses?
When an investor buys a house quickly with cash, they are not going to pay retail value. The investor either wants to flip the house or hold it as a rental. If they wanted to pay retail value, they would buy the house from the MLS where they can get an inspection and a loan.
Every investor has different criteria for what they will pay, but I want to buy houses at least 20 percent below current market value. If I am flipping a house I may have to buy it even cheaper (30 percent below market value), because of all the costs associated with flipping. 20 or 30 percent below market is a big discount, but if a house needs work and needs to be sold quickly, a buyer will not get retail value. That 20 or 30 percent is not a discount off the repaired value of the home, but it’s value in its current condition. However, when buying homes off market, the seller usually does not have to pay a commission to a real estate company, which will save them money over listing in the MLS.
How can you save money by not using a real estate agent when you sell?
The advantage of selling a house off-market, is the home is never in MLS and most people will never know it sold. Real estate agents are also not involved, which will save money on commissions. A home owner will not make as much money selling off-market as in the MLS, but it isn’t always a massive loss because they save money on these fees. A home owner may save 6 percent on real estate commissions (all commissions are negotiable), 1 percent on closing fees, 3 percent on buyer closing costs, and they won’t have to do any repairs.
How can a seller find an investor to buy their house quickly in Greeley?
If you are a seller looking to get rid of your home quickly for cash in the Northern Colorado area including: Greeley, Fort Collins, Loveland, Johnstown, Longmont, Firestone, Fort Lupton, Eaton, Kersey, Windsor and any of the other towns in the area fill out the form below and I will be in contact with you shortly. I am not a wholesaler and I will buy your house with cash.
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Selling a home off market is not the way to get the highest selling price for your home, but it is a way to sell your home quickly for cash. There are some shady investors out there who try to steal homes from off market sellers, but an investor has to buy homes very cheap for it to be worthwhile to buy off-market properties. I buy off-market homes in the Northern Colorado area and I am also a real estate agent. I have to disclose that I am an agent and that I may be buying a home below market value when I buy an off-market property. If the sellers and buyers both understand the pros and cons of off-market transactions, it can be mutually beneficial. Many times I will tell the sellers they will make more money listing the home than selling it to me, and we can help them in that respect as well.
You can also email me at Mark@investfourmore.com