The house is rough. We've seen worse.
When a house has significant issues, most of the traditional sale market disappears. FHA and VA buyers can't get financing. Conventional buyers with inspectors will walk away or demand massive credits. Retail buyers won't make offers in the first place. Suddenly, the buyer pool is small, the prices are low, and the timeline is long.
That's exactly the situation where a cash buyer makes the most sense. We don't need a clean inspection. We don't need a successful appraisal. We don't need anything but a fair number and a closing date.
What we mean by distressed
- Foundation issues — settling, cracking, slab problems, pier and beam deterioration
- Roof damage — leaks, missing shingles, structural roof issues, storm damage
- Water damage — past flooding, plumbing failures, mold, rot
- Fire damage — partial or major, with or without insurance proceeds
- Outdated systems — original electrical, ancient HVAC, galvanized plumbing
- Hoarder situations — homes packed with decades of belongings; we handle clean-out
- Vacancy damage — homes that have been empty long enough for problems to develop
- Code violations — open work orders, city liens, condemnation notices
- Storm damage — tornado, wind, hail damage on properties with or without insurance claims
How we price distressed properties
Our process is the same as for any property, but the repair number is bigger. We pull recent sales of restored comparable homes in the neighborhood, subtract a realistic repair budget for the actual work needed (foundation specialists, roofing, plumbing, HVAC, code work, cosmetic), subtract our carrying costs and required margin, and arrive at a cash offer.
The offer will be below retail. We won't pretend otherwise. But it will reflect a realistic view of what your specific property is actually worth in its current condition, which is often more than the lowball offers homeowners get from wholesalers or out-of-state investors who haven't seen the property.
Honest expectations
If your distressed property has significant value beyond just the land, we'll reflect that. If the structure is too far gone and what you really have is a teardown, we'll be honest about that too. Either way, the offer comes with a clear explanation of how we got there, so you can make the right decision for your situation.