We have all seen “We buy houses in cash” signs on the freeway exits or in our Portland neighborhoods; Normally, some ignore them, while others destroy them. Unfortunately, this action confirms the misconceptions about real estate investors and home-buying companies.
Common Myths About Real Estate Investors.
- Investors Are Scammers
Most professional home buyers are legitimate entrepreneurs in the market. As in any industry, some are experienced and very professional, and there will be others who just attended a real estate seminar last weekend.
Unfortunately, the latter group has given legitimate investors a bad rap. Many fill neighborhoods with “We buy houses for cash” signs and disappear almost as quickly as they appeared.
If you’re considering selling your home fast and in cash, be sure to deal with a buyer who won’t go away. It is important to know that when it is time to close, they will be there with the money and will not leave you waiting.
Verify that they are an honest company and that they have references. People who have sold properties to them are the best source of information. Every company must have a business history and be legitimately established as Better Off Home Buyers.
Please do your research and learn about our home-buying process.
- Investors Can’t Close In 10 Days
Escrow Accounts hold cash deposits on real estate transactions between 30 to 45 days so buyers can inspect their house and obtain approval for a loan.
A title company can process an escrow quickly; 7 to 10 days is generally not a problem.
If sellers and buyers agree, the title company has no problem closing in 10 days or less.
If the property seller needs more time for closing or does not have a place to go, they can reach an agreement with the buyer, and the closing will be done at the seller’s convenience. Or a lease agreement can be signed.
- Can I Receive More Money If I Sell Through A Real Estate Agent
If your home needs no repair and is in optimal condition, you had better sell through a real estate agent. But if, for example, the kitchen or bathrooms are outdated, your real estate agent probably will appraise your property for less than other homes in your neighborhood.
Whether or not you make repairs to the money you were supposed to earn will be reduced. Also, your potential buyers will say that the house needs repair, so the sale price will be adversely affected.
Remember that the amount you pay for arrangements must be deducted from the money you plan to receive. You will also have to pay the real estate agent commission. This is typically 6% that is divided among the agents involved.
If your house is not in the best condition, it is better that you sell directly to a buyer in cash and save on paying commissions, closing costs, and so on.
Investors work with a mathematical formula that estimates what they could pay for homes, variables such as the money homeowners lose for having a house inhabited, and the cost to sell through a real estate agent.
Based on the initial estimate, they deduce the repair costs, the expense of selling a property through a real estate agent, and escrow costs. Once they gather the information, a physical house visit is made to give the final touch to the appraisal process to present a fair cash offer to the property owner.
As in any business, investors will add a small profit. The final number of all will be the offer price.
- Cash Buyers Only Buy Perfect Homes
The best thing about home buyers is that they will buy your home in any condition.
Houses are the raw material of their industry.
The investor’s team will make the arrangements to fix a purchased property, so the seller won’t have the hassles of dealing with construction contractors.
Since its offer is based on experience and the application of different variables, a professional home buyer like Better Off Home Buyers can make you a fair written offer for your Portland home.
Home Appraisal: What You Need to Know Before Selling Your Portland Home
If you have ever bought or sold a property, you have probably crossed your fingers waiting for a home appraisal. Sellers fear a home’s appraisal report will lower the agreed purchase price. On the other hand, buyers expect a low appraisal to be able to negotiate for a lower price.
In this post, we’ll take a look at the appraisals. How does the home evaluation process work? What can damage the value of your home? Finally, we will see what can be done if the appraisal of a house reduces the sale price.
What is an Appraisal?
According to the Appraisal Foundation, it is an opinion on the price of a property. The Appraisal Foundation is an entity authorized by Congress to oversee the appraisal regulatory agencies of each state.
An appraisal is a tool often used to help in different transactions involving the property. Courts order appraisals when there is inheritance litigation, attorneys, real estate companies, and of course, we real estate investors.
Appraisals are important because, from a homeowner’s perspective, an appraisal process helps them to get an independent estimate of their home. From a lender’s perspective, it is a safety net that lets him know that the property is worth at least as much as the loan amount.
In the case of litigation or divorce, a home appraisal helps establish whether there is any equity in the property.
Scott Loyer from Connect Appraisals states, “Appraisals are important [to lenders] because they provide a guide to banks, real estate agents and homeowners who are trying to get the most money for their homes … allowing banks to lend with confidence. “
Automated Valuation Model, AVM, Zillow, and iBuyers
It is not uncommon for homeowners to use an automated valuation model (AVM) appraisal, such as Zillow, to determine the value of their home. AVMs use data analysis to create a value estimate. While AVMs can be a great tool, it is important to remember that they are just that.
Mason Spurgeon, an appraiser from Spurgeon Appraisals in Fayette, Missouri, states:
“An AVM is a great tool and should definitely only be used as a tool, not as a replacement for appraisal.” Mason Spurgeon
AVM collects data and uses mathematical algorithms to produce an estimate of the value of a property. Zillow, OpenDoor, and other iBuyers offer to buy homes using this system. However, AVMs require a large amount of data to be accurate.
AVMs have difficulty calculating the value of properties that are not identical. Also, the more expensive a home is, the less accurate they are. Even a small mistake can make a big difference in estimating the value of a property.
This is why most companies do not buy houses worth more than $ 500,000.
What are Appraisers Based on?
When most people calculate the value of their homes, they start with their size and the number of rooms. They can even tell the differences between your property and the house sold on the next street.
But a professional appraiser looks much more than that. Rachel Massey, an appraisal of Massey & Associates ValuationServices, Ann Arbor, Michigan, says:
“We seek the general condition, size, various amenities, quality of construction, location, and views. We will look for anything that prompts a buyer to choose a particular property. Basically we look at a house the same way a buyer looks at it.”
What Information Needed to Be Collected?
After considering all the factors and variables, the appraiser roughly does the following:
- Visits the property
- Looking at it closely.
- Using different information sources, such as county data and MLS records, comparing the value with recently sold properties in a Portland neighborhood
Determining the Commercial Value of a Property
The appraiser’s job is to study the data and determine the value of a home. To help them accurately determine the value of a house, appraisers will generally use multiple approaches. By using various methods, the appraiser can compare the results between each method and verify or correct their results.
A typical home loan could include a comparable sales approach between the homes in the local area. Also, it could have a cost approach, using the actual amount to rebuild your home. And if the property is for rent, they could use an Income Approach that determines the value based on the property’s income produced in the Portland area where it is located.
The Final Assessment Report
The last step in the process is the report. This is where all the analyses that took place come together. They are the appraiser’s conclusions.
Ideally, the report should take the client on a journey. It should help them understand how the appraiser looked at the data and how they concluded. Even if the client does not agree with the results, it is always good to know how the appraiser reached his conclusion.
Several things can negatively affect your home evaluation. Most notable is the location. Everyone has heard the three real estate rules: “location, location, location.” That is because it is true. Houses near busy roads, commercial or industrial areas, and even flood or fire zones can adversely affect the value of your home.
In addition, not having features that are popular or even “required” by buyers can also affect the value of your home.
The health emergency triggered by COVID-19 has negatively affected the Portland real estate market and, in general, the economy; remember that many people have lost their jobs, and these factors also affect the analysis of an appraiser when it comes to Determining the Price of a Home.
In conclusion, the popular myths that have been woven around the work of companies like Better Off Home Buyers are without foundation. A professional home buyer is the best alternative for a homeowner who wants to sell.
Today we wanted to provide this information so people can better understand the work our family business does.
It is not necessary to say how important the appraisal is; it is the essential part for the sale or purchase of a property to be carried out, based on the information that an appraiser presents that the mortgage businesses are closed. It is a tool available to all parties involved in the sale or purchase of a property.
As a criterion in the Better Off Home Buyers home buying process, we apply the appraisal tool, which makes the owner feel confident and realize the quality of our service.