How a ‘We Buy Homes’ Company Helped a St. Louis Man in Need

When Bob inherited his mom’s run-down home, he wasn’t quite sure what to do with it. Sure, it held some memories, but the house was badly in need of repairs that he wasn’t in a position to pay for. In fact, his financial situation made it impossible to even keep the property, at all.

So, Bob turned to a local St. Louis we buy houses company and brokerage firm for help.

He wasn’t sure what to expect at first, but they quickly offered him a number of reasonable options to fit his unique situation. After careful review, Bob decided it would be best to sell them his home. The best news came when the company then offered Bob various ways to sell it, so that he could choose the option that fit both his financial needs and timing, and gave him the most money possible for the property.

Bob determined that he had a few months’ time before he needed to sell the home, which gave his investors time to wait for the right pricing and market conditions. In the end, Bob got a fair amount of cash for the home, and just before the home was going to start costing him out-of-pocket to maintain.

If you’re looking to sell your home fast and for cash, then be sure to look for a ‘we buy homes’ company that is both a local real estate brokerage firm AND investment company, to ensure that your results turn out like Bob’s!

If they don’t fit these two criteria, then they probably won’t give you a fair price for your home or help you to determine your other options, as well.

Check out a couple of STL House Seller’s previous articles!

Seller Beware!
When Should I Use a We Buy St. Louis Houses Company

Knowing What to Look for When Working with a ‘We Buy Homes for Cash’ Company

We hear this question a lot (and you’ve probably thought it yourself); are those companies really legit?
The simple answer is, ‘Sometimes.’ So our advice is ‘seller beware.’ In the wake of the housing crash and foreclosure frenzy, ‘We Buy Homes for Cash’ companies have become increasingly popular with investors hoping to capitalize on desperate homeowners needing to sell their homes ASAP.
Just like with any industry, there are plenty of legitimate businesses, but there are also some bad apples to be wary of.
When it comes to selling your home quickly for cash, in certain situations this is truly the best way for you to sell your house and recommended. There are a number of reasons why a homeowner might want to sell their property quickly.
The key is in knowing what to look for when you consider selling your home for cash.

Here’s a quick run-down of when it makes sense for you to sell your house quickly to a we buy houses company in St Louis, and what you should be looking for in such a company:

• Work with a Local Company. You’re better off working with a local company than one of the national chains. The chain representatives are likely to lack the personal attention and care that your situation demands, and if they don’t even live in the area and are only talking with you on the phone you have no way to know how reputable the company really is. You see, if you use a local company where you actually meet the real estate professional in person, that investor has that much more motivation really take care of you…after all they are your neighbor! An out of state investor can simply move on to the next city and doesn’t have to worry about burning any bridges with you.
• If you are in a financial bind and must sell ASAP then you should consider using a reputable we buy houses company
• If you inherited a property that needs a lot of fix up, you should consider using a we buy houses company in St Louis
• You should also work with a company that employs licensed real estate agents; not just a company that solely has investors. By working with local, licensed realtors who want to buy your home, you are getting an expert in the real estate industry who will understand your situation, your options, the housing market and can provide you with a substantial amount more of value when you look to sell than what someone that solely is an investor can.
• Check with the Better Business Bureau! If they really want to help you get out of your home, then they shouldn’t have anything to hide. Never work with one of these businesses if they don’t have a good rating with the BBB.
• Finally, check out their certifications. Its ideal to work with companies that have certifications that go above and beyond the normal call of duty. Two such designations are the Certified Distressed Property Experts and Certified Short Sale and Foreclosure Experts realtor designations.
  These certifications mean that they are educated and trained in as-is property sales. They are experts at knowing how to help you get out of your housing hardship with as little damage to your credit and finances as possible.

Finally – the last thing to be aware of is that all reputable companies should not require any financial commitment on your part upfront.

Our process is that we meet with you or any of our other clients – we first ask you questions so that we can fully understand your situation. We then are able to analyze your situation and give you our expert advice free of charge!
There is not any pressure to do anything you don’t want to do. Literally we empower you with expert advice and information so that you can make the best decision for yourself and your family moving forward. And we do it all with no upfront fees or commitments on your part!
Be very wary of anyone looking to make money from you first, and advise you or help you only after a payment has been made. This is not how reputable real estate companies behave.

Check out a couple of STL House Seller’s previous articles!

Help! I need to sell My Home Fast
When Should I Use a We Buy St. Louis Houses Company

St. Louis Homeowners Can Get Real Help in a Pinch
There are many reasons for needing to sell a home quickly. Perhaps you’re behind on your mortgage payments and want to get out of your home before it escalates. Or maybe you’re already facing a foreclosure and want to avoid it, if possible. You may have even inherited an old house that you’re not sure what to do with. Whatever you’re reason is, if you find yourself in a bind and needing to sell an undesirable home quickly, one unique option is worth considering.

‘We Buy Houses’ companies are popping up all over the place these days

, and, if they know what they’re doing, can provide an amicable solution to your unwanted house problem. Essentially, they pay cash for your home based on ‘fair market value.’ They generally take over the home in a matter of days, and can often close on the date of your choosing. You get to walk away with some cash, and they get to deal with reselling it.
Before you get involved with one of these companies though, be sure to do your homework. Many companies have taken advantage of this concept, particularly with the recent foreclosure crisis, and routinely misinform the homeowners on what their options are.

Your best bet is to find a local real estate company

that also holds their real estate license. Their specialty must not only be buying properties in ‘as-is’ condition, but must also be selling houses fast in as-is condition as well.
Instead of just offering you the lowest price possible for your home, they’ll actually be able to give you a rundown of what all your sale options are. They will be able to explain how the ‘we buy houses’ process works, and help you figure out which sale solution provides you with the most amount of value. Then, no matter what you decide to do, you will be fully educated on all of your options and make the best decision possible to sell your St Louis house fast.

Check out a couple of STL House Seller’s previous articles!

When Should I Use a We Buy St. Louis Houses Company
What are some of the difficulties to selling a house in the current market?

Homeowners Get Advice on When to Sell Quickly

‘We buy houses’ companies are beneficial for a very specific type of seller; one who is extremely motivated to sell their home quickly, and/or a home that is ugly and needs a large amount of repairs.

Typically we buy houses companies provide homeowners the most amount of value when they are in one or all of the following situations:

• The property needs more repairs than you can afford to do
• Your are in a financial bind and must sell ASAP
• Your house needs work and has been on the market for months with no success
• ‘A’ Rating With the Better Business Bureau
• Over 300 St Louisans helped in our Careers!

So, in order to answer the question of ‘when should I use we buy houses companies’ you really must answer another question: How motivated are you?
If you need to sell your home today then you should contact a we buy houses company in St Louis.
If you aren’t as motivated by the speed of sale, and are looking to make the most amount of money that you can get out of your St Louis house, then now may be the time to talk to a realtor whose familiar with all of your property sale options available to you.

Be careful here though because not all realtors are created equally,

and depending on your house’s condition a realtor that does not specialize in ‘as-is’ properties could lead to a lot of unneeded stress and headache.

Make sure that you talk to a realtor that has experience with selling properties in as-is condition.

Our suggestion is not to call a major company or franchise, but to call a local agent who can explain all of your options and helps you figure out which sales option is the best for your needs and your house’s condition.

Check out a couple of STL House Seller’s previous articles!

What are some of the difficulties to selling a house in the current market?
What is the key to selling my St. Louis House?

Many homeowners are tired of patiently waiting for their homes to sell. There are a number of reasons why a house may remain on the market longer, some reasons can be addressed by the home owner, and some, such as the economy, can’t.

Supply and Demand

After the ‘housing bubble’ there were simply too many homes on the market with not enough buyers. Adding to this problem are the many homeowners who found themselves underwater on their mortgage, owing much more than the house was worth. The demand was also affected by job losses and a dismal job market. As a result, a snowstorm of foreclosures bogged the market down further with ‘shadow inventory.’ It takes time for a housing market as dismal as this to stabilize, the economy to improve, and the inventory to sell down. In other words: it was a buyer’s market. It still is, in fact, with prices only now beginning to improve from their depressed levels.
Fanny Mae is trumpeting a ‘sustained recovery’ as being underway for the national housing market, predicting that 2013 will see a notably positive rally, predicting a 15% increase in mortgage originations. Refinances are expected to fall 26% due to the expected increase in lending rates, seen in December and January.
However a glimmer of hope arrives in October, when the ‘shadow inventory’ fell over 12%. It’s still a buyer’s market, but maybe not for long.

The Lending Environment

After the mortgage lending fiascoes during the real estate bubble, and so many banks going under, lending conditions have become very stringent. Fed Chairman Ben Bernanke stated that the standards for lending have “swung too far the other way, preventing creditworthy borrowers from purchasing a home and thereby impeding the economic recovery.”
This further hinders home sellers when buyers can’t get money to purchase a house. It is also taking much longer to become financed, so homeowners need to make sure that any offer they entertain comes with a buyer pre-qualification letter.
Some buyers are almost ready to grab the golden key to the new home, when the financing falls through. In some cases, this frustrates the buyer, causing them to throw up their hands and decide to fix up their old house instead of buying. Conversely, the seller ends up feeling defeated and sitting on his home longer.

The sluggish job market

Arguably the most important indication of where the real estate market is going to be heading is the unemployment rate.
The sluggish job market is also a factor making it more difficult to sell your St Louis house. The logic is fairly simple, if you don’t have a job, you aren’t going to be able to afford to buy a house. So this rate is a great measuring tool to be able to see where they market as a whole is going to head in the future.
Making some miniscule gains recently, with unemployment in St. Louis at 7.2% in October 2012, while the unemployment rate for the state was at 6.9% and the nation was at 7.9%. When the market was struggling the most, the unemployment rate was above 10% so while 7.2% is still high, its improved quite a bit from where we were just a few years ago. This does reflect a slow yet improving job market, having gained 22,038 jobs in St. Louis in October compared to the same month the year previous.

Additional Item to think about

Sometimes homeowners only get wrapped up in the pre real estate bubble prices, and how much more they could have made if they sold before the market made the turn.
What they don’t think about though, is that had they made this sale, then they would have bought a house at the inflated prices as well and in turn they would either be underwater on the new home and owe more than its worth, or they would have lost some if not all of their down payment on the home.
So, if you didn’t sell and are feeling the pain of having to sell your house at a lower price than when the market was at its peak, don’t forget that you then can turn around and buy a home that is also at recessed prices.
Many of our clients are actually able to sell their property at 100% of fair market value for today’s condition, and then turn around and buy a property at 90 to 95% of fair market value and thus make their families and themselves better off from having decided to make the move.

Check out a couple of STL House Seller’s previous articles!

What is the key to selling my St. Louis House?
Improving Your Home vs. Selling it ‘As-is’

The key to nearly any success is education on the proper sale process, and understanding the correct steps to prepare yourself for the sale.

• Find out what homes have sold for in the neighborhood and immediate neighborhood using a QUALIFIED realtor that has experience selling houses in St Louis.

  Who is a qualified realtor? Not necessarily someone that your neighbor used or best friend used. It could be this person, but you need to ask them about the transaction history. How many houses did they sell last year? 8 to 10 is average for a realtor. When you entrust a realtor with possibly the most important financial investment that you will make in your life, you should never use an average realtor. So what we tell people to do is ask for the number of transactions, and look for an agent that is not just exceeding but at least doubling the business that an average realtor does.

• Mentally separate yourself from your ‘home’

  It is important to now look logically at your house. It is no longer your home, but a piece of property that you are going to try and sell. I tell my clients all the time to start using the words ‘property’ and ‘house’ and stop using the word home. ‘Home’ is less about the four walls and roof that a building has, and more about the memories and shared experiences that you have with your family while you lived in your house. Most people don’t realize this, but making this distinction for most people is the most difficult part of selling a house, and yet it is one of the most important mental distinctions that you need to do in order to clear your mind from emotion and make logical and sound decisions for your family moving. Letting emotion tie you to a piece of property will more times than not cloud judgment and cause you to potential financial mistakes to be made.

• Do NOT use zillow ‘zestimates’, past tax appraisals, or even a past appraisal that you had completed for a refinance as the measuring stick for what your house is worth.

  These measuring sticks are often inaccurate and do not reflect what your house will sell for in the current marketplace. Your house is only really worth what buyers in the current marketplace are willing to pay for it. No human being or computer algorithm, no matter how educated or trained in making property valuations can outsmart the marketplace.

• DO use current market sold data from the Multiple Listing Service and objectively compare and contrast those houses to yours to come up with a valuation.

Tips for St. Louis Homeowners Weighing this Decision

Homeowners preparing to sell their home are often faced with a difficult decision. Do you sell your home ‘as-is’ and take what you can get for it, or fork out the money for improvements and hope they pay off at the end? We get asked this question a lot, but our answer is always different; because every situation is unique.
That being said, there are some general guidelines that you can follow when determining the route you’ll go.
First of all, if your home needs repairs, consider how big they actually are. Home repairs can range from something as big as fixing a leaky roof or faulty plumbing, to the little things, like touching-up the paint. So think of categorizing the needed repairs to see which ones are a higher priority, and how likely they are to deter potential buyers. For example, if the needed repairs are a safety concern, then you should definitely consider getting those taken care of, especially since they could hold you up later down the road.

When the needed repairs aren’t a safety concern, though, then other factors can be taken into consideration.

A major question to ask yourself is how does my property compare to other properties in my area that have sold recently?
In some areas, an out of date kitchen is the ‘norm’ and you can get away without updating it. It really depends on the story that other properties around you are telling, and the price that they are selling for compared to the amount of money you have invested in the property.
On one hand, if the current value of your home is similar to that of others’ in the area, then you may not need to make any repairs at all to get a competitive price. If the houses around you are all in immaculate condition, then you will need to update your house to match that condition if you want to sell your house for the same price.
Another option is to forego the repairs, regardless of what’s happening in your area, but be sure to take it into consideration in your listing price. Some potential buyers may actually prefer to buy the home ‘as-is’ and pay for the repairs themselves because it would be more cost-effective than buying a more expensive home in better condition. That entirely depends on the buyer.
Overall, the decision to sell your home ‘as-is’ or make some repairs and improvements prior to listing is multi-faceted and concerns a number of different factors. Your best option is to not call just any local realtor that you may have a connection with. You need to speak with a realtor who is also an investor and can accurately help you evaluate what you need to do to get the most amount of value for your house when you sell it.
There can be some major problems to be aware of if you decide to improve your home instead of selling it in ‘as-is’ condition.

• Problem 1

  Finding a reputable, honest, and quality contractor to do the work needed to your house. This is a huge challenge and even though we have owned and operated a real estate investment company for over 5 years and bought and repaired well over 50 houses, we only have 2 reputable general contractors on our team…and this is from having been in the business full time for over 5 years!

• Problem 2

  Accurately Budget for each repair. Not having investment experience makes this difficult. How do you know if a plumber is being fair our unreasonable with his bid to replace your plumbing stack that won’t pass code?

• Problem 3

  Factoring in your time and holding costs. A big mistake that a lot of homeowners make when they decide to fix up their home is that they don’t accurately factor in all the expenses that are associated with homeownership including mortgage payments, taxes, and insurance.

The other big mistake is they don’t accurately measure the TIME it takes to fix the property up. For example, lets say your house is worth 200K fixed up, and its current ‘as-is’ condition is 150K but your property needs a lot of work and updates.
The advice that you get of what to update from your professional realtor totals 35K worth of updates, so if you do the work you could make an extra 15K from your property!
This on the surface sounds great, but unfortunately it isn’t an extra 15K that you will make. The work will take 3 months to complete, and each month it costs you 1K to hold on to your house. So your profit is now only worth 12K. The higher sales price means higher realtor fees that you will have to pay. The additional realtor fees are 3K so that then leaves you with 9K.
For some people 9K extra for the house is worth 3 months worth of labor on it. For others it is not. You have to then measure how much your time is worth and whether or not it would be a smart decision for you to go forward with the project or not.
I can reiterate enough how unique each and every situation is, and how important it is for you to seek QUALIFIED professional help when dealing with this situation. A friend’s realtor is not enough to help you make this decision. You need a realtor that specializes in ‘as-is’ properties and helping people analyze the situation accurately. Your average realtor has never renovated a house and is not equipped to tell you how much money it will cost to fix up your house.
The best part about getting the appropriate professional advice is that it won’t cost you anything to get their professional opinion, and it will take a lot of the guess-work out of the process for you.

Did your house sale go smoothly once you began working with Ryan?

Yes, absolutely.

How would you rate your experience with Ryan?  Why?

Very good. In the scale of 1 to 10, I would say he would be 10. Ryan was very courteous, understanding and very honest. We thought selling the rental property from out of state was very difficult and not safe but Ryan made it easy.

Would you ever work with Ryan in the future?

Surely.

Would you recommend Ryan to any friends?  Why?

Yes, surely because Ryan was very honest, considerate and professional. Ryan made the process easy, answers the calls promptly and kept his word. I would surely recommend him to anyone who is trying to sell a house.

Do you have any Additional Comments?

Every real estate transaction has a story behind it. We had our rental property in out of state , and we didn’t have anyone to manage our house. My tenant trashed out my property, the real estate market was very down, we were tired of rehabbing the house and traveling here and there. We were so helpless. I came across some home selling websites when browsing, I filled out an online applications with less hope, but Ryan contacted me within a day. He was very courteous, listens our story patiently, and got the job done promptly. He finished the deal on time. He even saved our time and money by finishing everything through phone and email. He returned our calls quickly and helped us beyond expectation. This is the best and easy deal we ever experienced. We are very satisfied with the transaction.

- Arunkamur

This house has many great features to it including being in a GREAT zip code.  63123 has over 83.7% of its population that have a high school education or higher and 22.7% of its population have a bachelors degree or higher!

The stability of the neighborhood is also a great aspect of 63123 with 65.4% off all homeowners living in the same home for 5+ years.  So you know you will be buying a property in an area that you will likely want to stay in for awhile (Source: ZipSkinny.com)

For more pictures of 6400 Ashbury please click on this link and you will get the scope of this - St. Louis county missouri house for sale under 130K !