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Your best online resource for foreclosed homes. We have lots of information
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Required Reading List for Buying Foreclosures!
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When a Real Estate Agent May Not Be The Best Option
by: Chris Cates
Historically, when homeowners wanted to sell their home, the first call made
would be to a Realtor. Since the early 1900’s, Realtors have represented
homeowners during the process of selling their home, which is usually to another
homeowner. Real estate brokers hold state regulated licenses that allow them
to market real estate on behalf of the owner. The national average for broker
commissions is approximately five percent. In many cases, another broker will
bring the buyer and receive typically fifty percent of the commission. When
the majority of homeowners sell their home, they believe a real estate agent
gives them the best chance to maximize the amount they receive and the agent
commission will come out of their proceeds at closing. This is a process that
takes place everyday throughout America.
Unfortunately, life does not always follow a predictable format that allows
for the sale of a home with a Realtor. More and more, Americans are facing
circumstances that demand unique solutions. Foreclosures, job transfers, over-leveraged
financing, and problem properties are just a few of the situations that require
alternatives to using a Realtor.
When a homeowner is facing a job transfer or foreclosure, a quick sale is
essential to avoid losing the home or facing the prospect of paying two mortgage
payments. Utilizing a Realtor can take weeks or months to find the buyer, and
then there are no guarantees that the buyer will qualify or go through with
the purchase. Many homeowners cannot afford to take that chance.
Often times, when a house is in poor condition or needs major updating, traditional
homebuyers are not as likely to make an offer since it is not up to market
standards or may not qualify for financing. The majority of homeowners do not
have the time, desire, or money required to make the necessary updates or repairs.
A problem facing many Americans in recent years is that even when the home
is in great condition, there may be little or no equity. This problem will
become even more of an issue in coming months as many homeowners over the past
several years have leveraged the financing on their home up to as much as one
hundred percent. When there is no money to pay a five or six percent commission,
then an agent is not a viable solution.
Fortunately, today homeowners have options other than calling a Realtor.
There are many private companies that specialize in buying homes in situations
that are not the norm. The majority of these companies focus on homes that
are in poor condition. Utilizing private funds, the company will purchase the
property, make the necessary repairs or updates, and then look to sell the
house at or above market value. Since the company utilizes private funds, the
property does not have to qualify for financing, which allows for a great deal
of flexibility when evaluating a house for purchase. Although there are far
fewer that are interested in homes that have little or no equity, the companies
that do focus on these types of properties provide a valuable service to homeowners
that have no other options. In a foreclosure situation, the company will many
times agree to bring the mortgage current and assume making payments going
forward. This solution not only saves the homeowner’s credit from an
immediate foreclosure, but also provides debt relief so that the homeowner
can move forward with their life.
In summary, if the situation demands it, homeowners now have options when
selling their home besides using a Realtor. If a homeowner needs to sell fast,
has little or no equity, or owns a property that is in need of major repairs
or updating, then there are private companies that specialize in addressing
these situations. There are very few problems that cannot be solved by one
of a variety of flexible solutions that one of these private companies can
provide. For more information or to find a company that handles these situations
in your area, please visit www.webuytheusa.com.
About The Author Chris Cates is a nationwide real estate investor, who co-founded WeBuyTheUSA
along with Todd Dotson. In addition, Mr. Cates is a national real estate mentor
for Tactical Real Estate, where he has trained real estate investors across
the country. For more information, please visit his website at www.WeBuyTheUSA.com.
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