There’s one standard way of buying a home that we’re all away of, and that’s the traditional process of using a real estate agent or going through the MLS. While there’s nothing really wrong with that, you just have to know that you’re looking for a home that’s likely already been remodeled, which means a waste of money if you’re planning on customizing or personalizing the home yourself, and you’re going to be paying top-dollar for it. But there’s another way to buy houses that doesn’t require paying market price for it, and we’re going to explore that a little bit here.
People that normally know how to get properties at a lower price are real estate investors. They focus on wholesaling, flipping, or lending money to flippers in order to make a profit. Generally, these are homes are in bad shape or otherwise going through foreclosure and need to be purchased with cash, have some TLC applied, and can be put back on the market at market rates. A significant percentage of homes that you’ll see on the MLS are actually restored homes that have been purchased and rehabilitated via an investor without you knowing.
As a home buyer, one of the things you can do is actually find these types of properties on your own or talk with a wholesaler that can provide you a list of possible opportunities. Usually a wholesaler will sell to investors, but sometimes their buyers are people who actually want a project house to work on and then live in it. This would be an opportunity for you if you’re looking for a discounted home.
Whether you’re doing it on your own or going through a wholesaler, the process is the same. You generally can find a list of homes that are either going through foreclosure, have tax liens, or have been inherited (probate), and can approach these homeowners to try and purchase on cash. In this way, you can help a homeowner get out of a tough situation while also getting a house at a 30% or more discount. These homeowners generally need to sell their house quickly to meet a timeline (like foreclosure). If you go through a wholesaler, they can save you all this trouble. What they do is basically this same process and lock the homeowner under a contract. Then they find a buyer and put their assignment fee on top of it, so you will pay them for their effort in getting that list of houses for you. This price can range wildly depending on how low they got it, and you may never even find out what their fee is. The rule of thumb is that they sell homes that are 30% lower than the market value for the home after it has been completely remodeled.
If you’re looking for a wholesale company to work with, you can check out this home buyer company in Houston. They are known for actually taking care of the homeowners they deal with to make sure they’re getting the best help possible, making it a win-win situation for all parties involved. They are the go-to for people that search for “sell my house fast” in the Houston market. With these types of companies, you’ll be able to get a list of homes that are ready to be purchased and are going to be sometimes drastically reduced from the market value. This is perfect if you want a home to personalize and can put about 30% of your entire home budget into making that happen.