We Buy Houses for Cash

 



"We Buy Houses for Cash"

 We buy houses for cash. I'm sure you see the signs. I'm sure you will see the advertisement. I'm sure you see it on Facebook or whatever. We buy houses for cash. We'll close really quick.

We make it very convenient. We let you stay in the house for an extra month or whatever.  

Understanding the Catch in Cash Offers
Why is that? There's always a catch, right? And by the way, I'll buy your house for cash. Just listen, ready? 

The Investor's Perspective
So they're mom-and-pop investors, right? Everybody will do that all across the United States up to the institutional black rocks and vanguards.

What they're doing is something called investing, and they won't be able to buy your house for retail pricing. They're going to buy your house on wholesale pricing, which means there's going to be a deep discount.

Oh, but you don't have to pay commissions. Take it 5%, just say that there's 5 percent in commissions. Now we have to, go back and forth, and say that you're not really paying the buyer's agent, but then, there's a concession that's going to pay the buyer's agent.

So let's round that up to 5 percent on top of closing costs, which are, I don't know, another 2 or 3%. Depending on the county, depending on the cut, a lot of different things. So you're looking at 8%. That means you're going to net about 92, 93 percent of whatever it is. So if it's a million-dollar house, you're going to get 930, 000 plus or minus.

These guys are coming in. And saying, Hey, you're getting a divorce. I know that you don't want to deal with this. Let me just handle it for you or a probate sale or this or that. Great. 

Evaluating Your Options


And by the way, I offer this as an option to my clients. Whenever I sell a house, I go here's one of the options.

You don't have to deal with anything. You can stay in the house as long as you want. I'll pay all the closing costs. I'll take care of everything. You just give me the keys at the end of 30 days walk away with your money and make it super convenient.

Sounds great, right? Except for one thing,

I'm offering to buy your house at about 60 cents on the dollar. That's the way it is. They're investors. They have to make their money. When they say it's a cash deal, they might buy it for cash. They take it at 60%.

Then go to the market, the investor market, and say, I got something. What do you want? And you want to buy it for 65 cents on the dollar. I'm trying to sell it for 70 cents on the dollar. And then there's another investor. That's a fixer-flipper guy. And now you become a bird dog.

That's the coined term. How hard is it to put it on the market? And I have programs that go all the way. My program isn't about force-feeding you, what I think you need. I give you options and tell you, this is about what you think if you sell your house and it's in decrepit condition, by the way, stay tuned because what you get for a million dollars is in decrepit condition today.
You're paying for the convenience. You're losing money on the convenience. This is a seller's market. Put that thing on the market. See what happens. You're going to pay a little bit, but I'm going to make you a whole lot more than what your investor friend buddy new best friend going to do until he takes all that money and disappears.

That's just the way life is. If your house is worth a million dollars, an investor comes in, and he's going to offer you 600, 000. I did that just a couple of weeks ago with another house, worth 1. 7 to 1. 8 and I offered 1. 4

Why? Because if I'm going to take it over, I have to take the risk but I also pushed back and said, you really should put it on the market. I think you're going to get 1. 6 to 1. 7. If it was completely dialed in, and ready to go, you're looking at 1. 7 to 1. 8. So important to understand your options.

My program is called Options. I don't give you a thousand options. I give you three options, wholesale as is, or tuned out, tuned up, ready to go turn-key. So if you're interested in selling your house, call me, and I'll give you those options. Won't pigeonhole you into anything. And if you're thinking about selling your house, download this checklist right here.
The link is in my blog. And in the descriptions grab it, download it, and it walks you through landscaping, exterior house, all that stuff. So you don't have to guess what's wrong with it. It allows you to create a honey-do list and come back and say, now's the time we'll have an inspector come through.

If you don't want to have an inspector, that's your option. I always recommend it so that you can give it to the buyers and say, this is my house. Take it or leave it. That's truly an as-is offer.
Race below 6%, 15-year fixed, 5. 98 percent today. That's crazy. Think about it. Hopefully, you have good credit, but a 2 million house. That's the average price of a house in Santa Clara County. Down payments, 400, 000.

You're looking at 6. 21 with 1%. A one-point loan. These are not quoted. These are not based on your technical blah, blah, blah. You need to talk to a broker or bank. 

Case Studies: Real Estate Listings

I suggest you talk to a broker to figure out what you get for 2 million in Santa Clara County today. It's been on the market for a bit.
Four bedrooms, two and a half baths, 2, 100 square feet built in 1970. It's right by Almaden Expressway in Coleman and the walking part and the retirement community are right there. And there's Oak Grove Park right there. Guadalupe park. It's been on the market for 17 days.
They've already reduced the price from 2. 3 to 1. 999999. Why? Because the seller had dollar signs in their eyes and they overpriced it they thought they could attract the market or become the market. Guys, let's take a look at this one. It's not in pristine shape. I would say, it's been semi-updated, but it reeks of.

1970. Look at those shutters or the chandelier. Okay. They put a new floor in.

They only did half the kitchen, this is a split level, by the way, a very standard, floor plan for our area. But guys, if you're going to redo the kitchen, you got to redo the kitchen. Don't cheap out. This is just reeking of cheapness. You got rid of the speaker system, walkie-talkie system, and communication system, look at this.

Oh, we ran out of money.

That's disappointing for 2 million. I think this thing's going to sit on the market for a bit. Again, not my listing. And if you want to know where it is, it's right here in Almaden. It's a nice location. You don't have to go down the really slow Almaden expressway. Cause everybody drives like they're in the land.
What'd you million dollars in Santa Clara County? I chose 95123 because I know the street fairly well. This one backs up against Highway 87, my listing 998, 000, a million dollars, three bedroom, two bath, 1, 367 square feet built in 1966 before the freeway was actually put in. Yep.

This was put in the eighties and now it's been on the market for two days. Let's see, does even have Air conditioning. Oh, has air conditioning. There's a plus, but if you look at it your backyard is the highway.

Good for this agent. Just put it on the market. I would elicit at 700. 800. I would have had multiple offers and sold it in three, or four days because that's the only way this thing's going to sell. Yeah, there you go. That's what you get for a million dollars in Santa Clara County. 

Current Market Trends and Predictions

Inventory And Supply Charts


I, the numbers for August, even though we're only two-thirds of the way through August right now, are going up. Is the market really slowing down? No, we're in the middle of the month. So the numbers aren't real. You're looking at mid-month numbers. What you want to see is these numbers right here, even though we're seeing the slowdown, we're still way below inventory and months of an active number of homes.

We need to have 2000 homes in Santa Clara County. We're at
We need to have 2000 homes. Again, 1800 to 2200. I'm just saying 2000 homes, we need a thousand homes just in San Jose, and we're like 500. Our supply here is. Negligible. We have zero inventory and you see it all across here. Oh my God. What's this one here? That's Montessori.

They have 12 houses for sale. It takes a while to sell these houses. Nothing out of the ordinary is here. These numbers will come down at the end of the month. I'll do it again at the beginning of September. So you can see better numbers but don't be freaked out at this.

The numbers of how things go through the month. Now, are we seeing house pricing contracts throughout the United States and certain areas going to crash? I think so. I think we're already seeing it right now. They might not be calling it that, but all the Southern states right now, where everybody moved to during COVID.
They're saying I don't like it here. I'm moving back. So that's why our houses are still maintaining value. We don't have enough houses for the demand in Texas Florida Alabama and Georgia. They're all seeing price contractions because there's an abundance of supply.

Now, what happens in September when rates go down below 5% or get around 5%? There's gonna be a whole lot more demand, but that's also gonna open it up for those homeowners that have houses at two and a half, 3%, and they're gonna be like, I bought this house 'cause I needed to buy a house and I didn't wanna move because I'm paying two half percent.

Now that it's down to five, I can afford to move. And it makes financial sense. So that will also increase the supply based on the demand and what you're seeing now in Florida and in Texas, people are moving out of Austin. People are moving out of Florida in droves, 

and you go to places like Connecticut, beautiful, actually great time to go look at the leaves. Those houses are maintaining value just like here because there's not a huge amount of inventory. Arizona. We're going to see prices correct. Lower and that's the way it is. There you go.

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I'm Vito with Abitano. We'll see you out there.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 We’re Hiring! 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg



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