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July 7, 2015How often do you pay for convenience and speed? People often pay convenience fee to pay bills instantly online or purchasing movie tickets in advanced through the online kiosk. How many times have you paid to use the express lanes on the highway to avoid that nasty traffic during the rush hour? What about paying double or triple for shipping services like UPS and FedEx to receive or send a package few days earlier? There are many more instances where people spend money to buy convenience and speed. Then why do some people give real estate investors a bad rap as sometimes trying to “low ball” home owners on their offer to buy their house? Real estate investors sometimes have a reputation of being seen as “cheap” or “unfair” with their offer, but is that really the case? It is true a real estate investor offer is typically lower than what a Realtor will list an owners house for, but when you take into consideration the fact that if a property needs a lot of work there is a high chance the home owner will not be able to sell their property at the market price, an investor can often be the best option. There are also the extensive costs associated with selling a house on the open market with a Realtor that most owners don’t take into account. How do investors come up with an offer on a house? When investors make offers to a homeowner for what we can buy their property for, they do not come up with random numbers to offer, but rather analyze the comparable sales within the given area with houses that are similar in size and format. Many real estate investors are licensed realtors, which also give them access to sources that have much more accurate prices and values of properties. There are also expenses that people who sell their homes on the market with a Realtor do not usually add into their equation such as the remodeling cost of anywhere from $0 to $20,000+, real estate agent commission of 6%, closing costs of 2-4%, inspection repair costs, and weeks or even months of time spent on the market waiting for a buyer. There is also the time and potential aggravation of having open houses for people to view the property, conducting dozens of one off buyer showings, etc while you’re waiting for an offer to sell your house. House buying services like 4 Brothers Buy Houses offer to buy the house fast and in cash, while saving people the trouble of going through all the hassles mentioned above. The cash offer may not be as much as what they would get by selling with a Realtor, but after all the above expenses are taken into account it is usually close. Most importantly though, what we offer to home owners is a convenient and fast way to sell their house with very little hassle.
June 24, 2015
People may wonder why anyone would need to sell their house FAST or AS-IS instead of selling it traditionally through the real estate agents and putting it up on the market. People might think this process occurs usually when people are ready to move out to a new house. In a sense, it is true. However, there are many other reasons why people have the need to sell the house or even consider “getting rid of it.”
Why in such hurry?
One can be going through a divorce process and need to quickly clear the names off of the house and move on with their life. A house could have been inherited but it is unwanted or too difficult to manage so it is in the owner’s best interest to liquidate the asset without hassle. There are more in depth explanations on the divorce and inheritance situations at www.4brothersbuyhouses.com. Some people get behind on payments; whether it’s on their mortgage, which results in them going into default, or on smaller items like property taxes or even HOA association dues. In those cases, people often can’t financially afford to be in the house anymore and so wish to sell quickly so they can move on to a property that will be more financially comfortable for them to own.
Another reason why an owner might need to sell a house fast is due to an impending bankruptcy filing, be it chapter 7 or 13. Other common causes are various life changes, like an owner who may want to move to a smaller home quickly due to a change in income that was caused by unemployment or shortened hours. Changes in financial conditions can often lead an owner to want a home with a more manageable monthly payment.
Perhaps managing a rental property is becoming too difficult and want to just sell the house. Ultimately, regardless of the reason of selling the house, people may struggle to afford to fix up the property to even put up on the market or do not want to go through weeks or months worth of hassle.
Let’s say someone has enough funds to fix up the house and use a real estate agent to put it on the market. People claim that time is money. Saving time can be critical in certain cases and that is why people would consider using services like 4 Brothers Buy Houses to quickly go through the process of selling the house. Convenience is also another huge factor that comes into play. Some people need to go through their attorney, home owners association, real estate agents, remodeling contractors and loads of paperwork. Even after all the hassle and finally putting it up in the market, there is no guarantee it will be sold right away! It takes time and effort to leave the house open for people to come by and visit to look at it. People should always consider their alternative options to sell their house fast and as-is to alleviate the problem of not having enough funds or not wanting to go through a hassle when they are in time sensitive circumstances.
March 19, 2015
For April of 2014, the Montgomery County real estate market has continued to remain strong, with a median sold price down just a fraction of a percent from April 2013 to April 2013 to $400,000 flat. The number of new listings is virtually unchanged from last year, up 2.3% to 1,840, while the number of closed sales has decreased significantly from 985 in April 2013 to 871 in April 2013.
The decrease in number of closed sales can be attributed to a decrease in inventory of available homes for sale as the competition for the existing homes continue to remain high.
This fact is reinforced by the average days on market and average sold to list price ratios, which both remain well above their 5 year average. Average days on market is down significantly from 50 in April 2013 to 44 in April 2014, and well below its 5 year April average of 62. Average sold to list price ratio remained high- near it’s April 2013 figure at 97.8%, and above the 5 year average of 95.9%.
Forward looking inventory remains tight with the number of active listings at 2,414, which is significantly below the 5 year April average of 2,821. This would indicate that comptetion for existing homes will likley remain high- keeping upward pressure on sales prices and downward pressure on average days on market. This is continued good news for sellers, who have begun to respond to increasing buyer demand by listing their homes for sale, but will result in a continued diffcult environment for home buyers.
In terms of specific zip codes to point out within Montgomery County, the 20854 zip code in Potomac, MD continued as one of the highest priced zip codes in the DC area with median sales price up 1.2% over last year to $842,500, and average sold price down slightly at 3.4% to $978,510, which is based on 49 closed sales in the month of April. The highest volume of closed sales were in 20906- Silver Spring, 20878- Gaithersburg, N Potomac, and 20874- Germantown at 76, 71, and 67, closed sales respectively.
June 17, 2014
Landon’s mother passed away in January of 2014 at her home in Silver Spring, Maryland. His father had passed years before and his sisters lived out of state. Even though Landon’s siblings came back for the funeral, Landon was left with the burden of funeral arrangements and later on, handling his mother’s estate and will.
There was only one problem- Landon’s mother had previously named his sister, Angela, as executor. Basically, this meant it was Angela’s legal responsibility to settle the estate, including going through the probate process and figuring out what to do with her mother’s house. The average probate- the legal process of passing on a deceased person’s estate to his or her heirs- takes about one year. Neither Angela or Landon had a lot of free time to work on this so they were quickly overwhelmed.
Angela had a full time job and two kids of her own in North Carolina and was not able to spend much time in Maryland and Landon, though residing in Maryland, was not the executor so could only do so much without Angela being there.
Toward the end of February, while sorting through paperwork, Landon realized his mother had built up considerable debt during the last few years of her life. Seeing that this would fall to him and his sisters, the need to sell the house was even more pressing than before.
With the probate process just getting started, Angela in North Carolina, and the discovery that his mom was still paying off the mortgage at the time of her death, Landon knew he needed to sell the house fast but feared how complicated the process might be. That was when he noticed a letter in the mail from 4 Brothers Buy Houses.
It was a cash offer for his mother’s house.
Since this was not the house Landon and his sisters grew up in, they had no hesitations about selling the house quickly. He decided to call the number on the letter to see what the offer was.
After hearing a preliminary offer, Landon got the OK from his sisters and decided to work out the details with 4 Brothers Buy Houses. He was worried about the legal stipulations surrounding the sale since he did not technically own the house and since his mother did not own it free and clear when she died.
We told him we could help.
After working through the probate process with the Montgomery County probate court and negotiating a number of liens that were on the property- including an old HOA lien- we helped Landon get clear title to the property and were able to buy his mother’s house in less than a month.
If you own an inherited house and aren’t sure how to approach the probate process, how to sell the house quickly, or how to sell a house with title issues, give us a call and see if we can work something out.
May 8, 2014
Anna and her husband David separated in January, 2012. David, who was in the military, took a permanent position overseas leaving Anna the house in Bethesda. The following spring, Anna moved in with her mother in Frederick because she did not want to live in the Bethesda house by herself. Although it was mostly paid off at the time of their separation, the home’s property taxes were still fairly high, over $4,000 a year. Anna realized that she would have to sell eventually.
She knew that she wanted to sell the house, but was overwhelmed by the whole process. The idea of cleaning out the house and removing everything David left behind was painful for Anna and she put off the sale for as long as she could.
With David overseas and other complications, the divorce didn’t go through officially until August, 2013. The house was officially hers.
That was when Anna saw a sign for 4 Brothers Buy Houses. She had seen these types of advertisements before, but never really knew what they meant. Would she have to clean the house? How long would the process take? Would she need a realtor?
She decided to give us a call.
We listened to her concerns and after giving her a preliminary cash offer and assuring her that she would not need to step foot in the house to do any cleaning or hire a realtor, we agreed to look at the house and finalize our offer.
The house was in better shape than we expected so we offered to pay the closing costs as well as put all of her and David’s old possessions in a storage unit so she could take a look at them when she was ready.
We closed on the deal less than two weeks after Anna first called.
If you are going through a divorce or another tough situation such as a death in the family or career change and need to sell your house fast for cash, consider giving us a call to see if we can help.
April 14, 2014
Selling a Problem Rental Property
When Jessie found out she was going to the University of Maryland after her 2011 high school graduation, her dad saw what he thought was a great investment opportunity. He recently inherited a sum of money from his parents and decided using it to invest in real estate would be a safe bet. His idea was to buy a three bedroom house in College Park and have Jessie live in one room while renting out the other two rooms.
Jessie wanted to live in the dorms where most other freshman lived but after some convincing from her parents, she agreed to live in and help manage the house. Her dad was excited.
Not being a landlord or a homeowner previously- he had no idea what he was getting himself into.
They were able to close on a home in August, which actually had four bedrooms, just in time for Jessie to move in and find some roommates.
After two semesters of homeowning and landlording nightmares- including late payments, parties, and damage to the house- they decided that the house was not such a great investment.
Jessie’s parents ended up putting all of their revenue from tenants right back into the house and actually had to dip into their savings to deal with house related issues.
While studying for exams at the close of the spring semester, Jessie was very distracted because of issues with her latest roommates who had not yet paid that month’s rent. She googled “How to deal with bad tenants” and found a few good websites and blogs. But what was more interesting was an ad on google which read “We Buy Houses Fast for Cash!” They never considered selling the house before but after overcoming some initial skepticism, Jessie decided to call the number on the ad, just to see what the offer would be.
So she dialed the number for 4 Brothers Buy Houses and spoke with Jon. After describing the house over the phone, Jon was able to give her a ballpark offer on the house. Even though he mentioned the number might rise or fall after a home inspection, Jessie went to her parents with the idea. Her dad was surprised that Jessie even considered such a strange advertisement, but after hearing the cash offer, decided to speak with Jon himself.
After a short conversation in which Jon explained that 4 Brothers Buy Houses would buy the house quickly for cash, pay all closing costs, and takeover tenant management, Jessie’s dad decided to go for it.
A short ten days later, they closed on the sale and Jessie moved home for the summer.
Real estate investing can be tricky and many people jump in too quickly. If you are managing or living with bad tenants and don’t know what to do, consider calling 4 Brothers Buy Houses. You never know, we might be able to offer more than you would expect.
April 8, 2014
Underwater home? Tips to consider in a short sale
According to NBC News, there are over 22 million homeowners in the United States that currently cannot sell their homes without having to pay deficiencies or come out of pocket to pay closing inventories. While the economy in Washington DC is certainly better than most areas nationwide, there are still distressed property owners who are looking to sell their houses fast in Washington DC, but cannot afford to come out of pocket to pay.
An underwater home can be described as when a mortgage is greater than the value of the house, even if you have a small percentage of equity, it may not be enough to pay the closing costs. If you are considering a short sale, there could be drawbacks that your need to be aware of. For your own protection, all property owners should seek legal advice from a competent real-estate lawyer.
If you are considering the option of a short sale, you should:
Contact the Lender
Get in touch with your financial intermediary and request to speak with the “Loss Mitigation Department” of the bank. It is likely that the bank will be very firm at first and may be hard to deal with, but be direct, to the point and they will loosen up and prepare to deal with your situation.
Preliminary Net Sheet
Your financial intermediary will want to see how much money they are going to net with your offer. Providing them with a Net Sheet with your offer will provide the bank with all the details and numbers they need to see.
Proof of Income and Assets
It is best practice to be open and honest when it comes to your financial situation and disclosed assets. Lenders will request to know if you have items such as money market accounts, negotiable instruments, stocks or bonds, cash or other property or assets of tangible value. Essentially lenders require assurance that the debtor cannot repay any of the debt that it is forgiving.
Copies of Bank Statements
Present your statements to your bank and be advised that if your statements show unaccountable large deposits or withdrawals it’s a good idea to explain each of these line items to the lender.
Purchase Agreement & Listing Agreement
The lender will require a copy of the listing agreement and a fully execute offer accepted by the seller. Be prepared that the bank will most likely negotiate all fees, home protection policy, etc.
When you originally purchased your home, you most definitely did not picture yourself in this situation. Unforeseen circumstances, such as a unemployment, readjusting mortgage rates and illness to name a few examples, can put you in such an undesirable position you never imagined. It is never more important that you look at all your available options, including bankruptcy, foreclosure and the short sale before you select the one that will work best for you.
At Capitol Home Buyers we are LOCAL buyers looking for homes in the DC area and are prepared to make you an offer today on your home. Get in touch with us today for a quote on your home in 24 hours.
April 5, 2014
Over the last year, our friends over at UrbanTurf has been investigating and publishing some statistics that help provide us with a clearer picture of the current state of the area housing market for our readers in DC. This week we are taking a look at the fastest zip codes for selling a house in the DC area in 2013. We are also going to provide some information of the number of days on the market to give our readers an insight as to how quick you are likely to sell your house in each of these areas.
Take a look at the study results below that will give you some information on the six fastest selling zip codes and the five slowest selling zips in the region for 2013.
Of course, when you sell your house to 4 Brothers Buy Houses you don’t have to wait to sell your house. You pick the closing date that works for you and we close on YOUR schedule.
Fastest Washington DC Zip Codes For Selling A House:
Slowest selling zip codes:
We at 4 Brothers Buy Houses are specialists in buying homes in the Maryland, Arlington and DC metro areas, so if you are having difficulty in selling you home fast, please get in touch with us and we can help you through this process.
April 4, 2014
In 2007 Peter’s grandfather passed away, leaving Peter his three bedroom home in Hyattsville, Maryland when Peter was just a Junior in High school. Peter had no use for the house he had inherited at that time, and didn’t know what to do with it, so he ended up not doing anything with it. It sat vacant while he finished high school, completed college, and started work for an accounting firm based out of Silver Spring MD.
In total the house had sat empty since Peter inherited it- for a total of 7 years.
In 2013, Peter proposed to his long time girlfriend whom he had met in college. As Peter and his fiancé started to plan for the wedding and decide where they were going to live once they got married, the house he had inherited came to mind again. He’d done nothing with it for all this time, and the couple of times he’d visited it was pretty appalled by how much maintenance it needed.
He wasn’t sure what to do with it, but knew that the cash from selling the house could be useful for what he knew was going to be a pretty expensive wedding and honeymoon. He was also excited by the idea of using the funds from selling the house for the down payment on a new house for him and his new wife- they were hoping to buy a small single family detached house in Arlington, VA.
So Peter decided it was finally time to sell his grandfather’s old house, but the house was in awful shape. 7 years of sitting vacant had really taken a toll on the house. The roof had started leaking and caused a huge mold problem in the main floor and basement. The yard was completely overgrown and all the appliances were original from when his grandfather bought the house in 1972.
Peter wanted to sell the house but he knew that it would be almost impossible to find a normal retail buyer who would want to take on what he figured was going to probably be a complete gut renovation. He showed a couple of Realtors the house and they weren’t interested in listing something that showed that badly and had such a significant mold problem.
Peter had gotten a few yellow letters over the years about the house, and the one he got most recently he decided to call to see what an investor would pay him for the house. He had seen these types of things before and was sure that either a) This was a scam or b) This company would lowball him and refuse to negotiate a fair deal. However, urged on by his fiancé, he decided it was worth it to give them a call, just to see what they would offer.
He spoke with Jon, who offered him a cash deal. It was for more than the lowball offer Peter expected, but a little less than he wanted to get for the house.
After Jon explained how he would take the house “as-is” and pay the closing costs, Peter realized that the offer was more than fair, especially since the deal would close in less than a week and he could finally be done with it.
To the relief of his fiancé, Peter and Jon closed out the deal 12 days after their first phone call. The cash they made off the deal completely paid for their wedding, made a significant dent in Peter’s college loans, and provided them with enough left over for a down payment on a 3 bedroom Colonial style house in Shirlington, VA.
If you have a house that you need to get rid of but don’t think will sell in the retail market, consider contacting 4BrothersBuyHouses to see if we can come to some kind of agreement to help you like we helped Peter and his fiancé.