We Buy Houses In Connecticut For Cash!
We Give Fair Offers!
You hear that every time when dealing with investors. Being an investor is easy! Being an honest investor however, is extremely difficult!
We believe it is time someone writes a transparent article about fair offers from an investor’s point of view. This is especially beneficial to home owners considering selling their house. If you know how the mind of an investor works it is harder to be taken advantage of!
Know The Market Value Of Your House!
Sadly, no, your childhood memories in your house do not add market value to your house, nether does your blue purple $20,000.00 cabinets you installed last summer. It is very difficult to look at your home of 30 years from a numbers perspective. You have to separate emotion from the equation and see the house for what it is, a house, not a home.
That beautiful arbor you proudly constructed in the summer heat with sweat and blood may be worth more than money to you, but it may not add anything to the market value of the house.
Market value and assessed value are two very different concepts.
Allow me to give an example.
Imagine you are an eccentric wealthy homeowner. You have a house made out of gold. Golden walls, and where ever there should be glass, you have diamond.
Your house with its golden walls and diamond windows costs millions. The assessed value is millions of dollars.
However the market value is low. How is that possible?
Let’s define “Market Value”.
According to the BusinessDictionary:
The highest estimated price that a buyer would pay and a seller would accept for an item in an open and competitive market.
Now who would buy a golden house? Not many people! It is not practical. No one would buy it! Hence the Market Value is low. Supply and Demand determine the market. There will always be a supply of houses while there simply is no demand for golden houses with diamond windows.
On the other hand the assessed value, according to InvestoPedia:
An assessed value is the dollar value assigned to a property for to measure applicable taxes. Assessed valuation determines the value of a residence for tax purposes and takes comparable home sales and inspections into consideration.
Often homeowners confuse these two terms and then get frustrated when they receive “low offers”, simply because they do not know how to monetize their home according to the Market Value.
Keep in mind that when an honest reputable investor or cash buyer, makes an offer, and buys your house, their intention is to sell it again after some sort of upgrade in order to make a profit. That is what investors do.
This means when they buy your house suddenly they are now taking over your troubles to sell the house fast. Now they are subjected too all the unforgiving market demands you were subjected to concerning market value.
Established cash buyers have done this many times before and they know for how much in a specific condition, size, and location would sell. An offer is than presented based on these factors.
How To Determine Your House Market Value?
“My house has beautiful wallpaper, and rounded wall closest extensions, is completely custom build and one of a kind. Why are you offering so little?”
More is not always better. Although beautiful, not everyone has similar tastes. Wall paper is out. No one wants it anymore. Custom houses only limit your buyers pool.
The Market Value of a house is determined via “comps”. Comps is short for a comparable. A comparable is a house that is similar to yours (similar build year, size of house, size of lot, similar style construction and very importantly, similar condition of the house) that have recently been sold within a mile radius of your house.
Keep in mind the definition of Market Value. The price a buyer is willing to pay and the seller willing to sell it for. What better way to find this number by looking at a house similar to yours, that has recently been sold. Thus a comp accurately gives you the price a buyer has paid and seller has accepted for a house that is very similar to yours.
You can easily determine the market value of your house. Websites like Zillow and Trulia are very helpful, but often very inaccurate. These sites, list all the houses sold in your area and displays the closing price. Despite the inaccuracy however it gives a reasonable ballpark of the value of your house.
A more accurate way to find out the Market Value of your house, is by asking a real estate agent. We do want to give a word of caution.
After you have a good idea how much your house is worth in its current condition and in your local market you can be more confident accepting offers from investors.
Always verify the numbers and do your own due diligence.