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There are times when homeowners want to sell their house, but their listing just sits in the market for months before anything happens. And then, there is the current real estate market, where unlisted homes are being sought out and homeowners are getting offers even when they aren’t keen on selling.
The interesting thing is that while real estate agents and their clients are going out and making offers on unlisted properties, they often aren’t even offering top dollar. Instead, they’re trying to get away with lowball offers.
If you’re a homeowner who has been getting phone calls and unsolicited offers to buy your home when you aren’t interested in selling, don’t be alarmed or taken in by these offers. We’re going to explain to you why you’re getting these offers and how you can handle them.
Why you’re getting these offers?
The main reason you are getting these offers is that right now, we’re going through a seller’s market. What that means is that there are more people in the housing market looking to buy a home than there are homes available.
So much so that Freddie Mac estimates that we currently face a deficit of around 3 million homes in the country. And as a reason, the median sales price of existing homes has also grown by 15% since 2020 to around $375,300 in 2021. If you believe in experts, this growth trend in real estate markets is not slowing down anytime soon.
Since there is such a high demand for homes, real estate professionals are resorting to some of the oldest marketing techniques: cold calls and text messages.
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Who is making these offers?
Now you know why you’ve been receiving calls or texts offering to buy your house even though you haven’t bothered to list your home on the open market. But who are these people making these offers?
Real estate investors
Real estate investors view the current market situation as a great opportunity to buy homes and sell them for a profit, which is why you may be receiving lowball offers. There are different types of real estate investors that you need to be aware of.
- Wholesalers are real estate investors who buy properties in bulk and quickly sell them, often without bothering about home renovations or repairs. They make their money by buying cheap and selling at a profit. These may be the people offering you less than the market price of your home.
- House flippers look for properties that often need major repairs, buy them cheap and work on them before selling them for a profit. If your home is in need of a major overhaul, these are the guys you want to sell to.
- The third type of investor believes in the buy-and-hold strategy. This means that they will purchase a property and sit on it while the market continues to grow. Some may rent the property out in the meantime to reduce some of the financial burden and then sell it when they think the market is peaking.
Read more: Can a realtor tell you other offers are?
Real estate agents
Competitive markets most often mean raging bidding wars on properties. If a homebuyer is particularly interested in your neighborhood or your home in particular, they may get their real estate agents to reach out to you with an off-market offer to buy your house. This is done to avoid the chaos of a bidding war on an open listing.
If you are open to the idea of selling your house, negotiating these kinds of offers is likely to turn out to be beneficial to you. Who knows, they may even make you a cash offer without any contingencies.
How to decide which offers are legit
When you’re receiving a lot of offers on your home, it is natural that you be suspicious of the authenticity of these offers. While a lot of them may be genuine offers, here are some easy ways to protect yourself from scammers.
Always check licenses to ensure the offers you are receiving are by registered real estate professionals. These licenses are in place to protect you and others like you from scammers in the real estate industry.
Beware of quick settlement offers
While a lot of prospective buyers may tempt you with fast settlements and other seemingly beneficial offers, do not let yourself get swayed or jump into a settlement before first verifying facts with an experienced real estate professional and making sure you are being offered a fair price for your home.
Be careful while sharing information
If you are talking to someone about selling your home, be sure to share information such as tax information and title documents only through secure channels.
What is the best way to sell your home?
If these persistent offers to sell your home are getting to you, there are multiple things you could do to get them to stop, ranging from adding your details to the DNC register to simply asking the solicitors to stop.
However, if you do decide to sell your home, here are some things you ought to remember. If the offers are coming from investors, remember that they’re looking to make a profit off of your home, which means the offer is most likely lower than market value.
While cash buyers with no contingencies may seem like a great deal, it should only be your choice if you want to sell your home in a hurry.
However, if you are serious about selling your home and you’re not in a tearing hurry, your best bet is to find out the market price of your home, list it for sale and negotiate with buyers until you get the best offer. Remember, it is a seller’s market after all, which means you have the upper hand and deserve to walk away with top dollar.