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We Buy Amarillo Houses | Why Are Investor Offers So Low?

Every week I make a lot of offers on a lot of houses.  I end up getting many of them accepted.  Often times people ask me to explain how I come up with what price to offer.  I know that what they really mean is, why is my offer so low?

First it is important to understand a net offer as opposed to a gross offer. Many times a homeowner will hear that their neighbor’s house sold for a certain price.  Let’s just say $100,000.  But what they don’t realize is that their neighbor actually walked away with much less.  They had to pay 6% to their Realtor, 2% for their own closing costs, 3% in buyer closing costs, and they had to make repairs that added up to $3,000.  So they actually netted $86,000.  Since I pay all of the closing costs and don’t require any repairs to be made my offers are net offers.

Second it is important to understand the difference between the list price and the sales price.  Often times a Realtor will advise someone to list their house for entirely too much money.  Let’s use the neighbor for example.  A Realtor may have advised them to list their house for $115,000.  Three or four months later the homeowner realizes that they have over-priced their house and lowers it to $105,000.  Now it is priced correctly.  But the national average for negotiating is about 5%.  So it ends up selling for about $100,000 and they walk away with around $86,000.  Big difference!

When we buy Amarillo houses we pay all of the closing costs.  We take the house as is.  We can close very quickly.  We must be able to buy the house at a price that will allow us to make repairs and sell it for a profit.  When you compare our offer with the amount that you would actually walk away with if you used a Realtor you will see that our offers are actually not that bad and our terms are outstanding.  If you would like a free quote give us a call today at 806-359-7653 or visit us online at We Buy Amarillo, TX Houses.

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Contact Information

4105 SW 34th St, Amarillo, TX 79109 | 806-359-7653

wade@mitchellpropertygroup.com | emmy@mitchellpropertygroup.com