In the real estate world, the acronym FSBO (fizˌbō) refers to “For-Sale-By-Owner.” The rapidly growing segment of FLIPPERS has become a popular topic on HGTV, and a very active element in our own real estate market.
If you are a FSBO you will undoubtedly be contacted by a FLIPPER or two. In fact, you are very likely to receive unsolicited phone calls and postcards from FLIPPERs searching for their next investment. To be clear there is nothing inappropriate with the FLIPPER business model. Basically, their goal is to buy your house for the lowest price possible. Then they quickly go to work freshening up the property with upgrades like paint, flooring and so forth. The goal is to make reasonable improvements and re-sale the property for as much profit as possible. Buy low and sell higher.
The FLIPPER will entice sellers by offering to purchase their home for cash, no commissions, no repairs and you may not even have to clean out the basement or garage! They are ready to close quickly and easily. Depending on the circumstances this can sound very attractive to an inexperience seller.
Quick and easy perhaps, but is it your best choice? Keep in mind when negotiating with a FLIPPER you are dealing with a professional buyer. One that makes a living negotiating low purchase prices. Their approach will likely be to encourage you to make a quick decision without exposing your home to a much broader market.
I recently was contacted by a gentleman that was interested in selling the family home to settle an estate. He had contacted a FLIPPER and they promptly offered $160,000 for mom’s house. Like many estates the house had considerable amount of deferred maintenance, needed updating and had a lot of personal stuff still in the home. The FLIPPER’s offer was as-is, no repairs and no clean out. Fortunately, the seller resisted the pressure that accompanied their offer and called for a second opinion.
By noon we listed the home for sale. By 10:00 pm that same day the seller accepted an offer generated by our listing for $216,000! A fifty-six-thousand-dollar higher offer with no inspections, no repairs and no clean out. And yes, as a professional seller we earned a modest commission, but the estate still came out with much more cash.
Quick and easy, with a very positive outcome.
BIll Budler
Seniors Real Estate Specialist
BancWise Realty
402-641-0060
Bill@BancWise.com
