Predators or Angels?
I’m starting to see more and more “We Buy Houses” signs around Clayton, Concord, and the other cities off Highway 4 like Pittsburg, Antioch, Brentwood and Oakley. Not sure if most people know how these buyers work. Essentially, they are looking for equity in your home in exchange for buying it from you quickly. No agents, no time on market, but also no big cash-outs usually. If the homeowner doesn’t have at least $100,000 equity and is willing to let it go for at least 20% under market, the buyer most likely will not go for it. These signs are most useful for those in danger of foreclosing on their property. It’s a lot better to rid yourself of a loan going bad, and giving up a chunk of equity, instead of watching the bank take ALL your equity, kick you out of your home, and destroy your credit for many years to come. It doesn’t take a lot of fancy investor knowledge to save someone from a home going into foreclosure, just someone with the ability to buy it from you. If there’s at least $50,000 in equity for them, it’s a fair deal to get someone out of a potentially catastrophic situation. Email me if you know of someone in this situation and are in need of advice. It can be a tricky situation, therefore it is best to work with someone who is financially strong, aware of market conditions, and sensitive to the homeowner’s needs.