You’re scrolling through your texts, and suddenly, you see an unexpected message—someone wants to buy your home, but it’s not even for sale. If you’re receiving these types of phone calls, texts, or postcards offering to buy your home—often for cash—you’re not alone. These offers typically come from investors and buyers who are actively seeking off-market real estate deals.
Be Proactive: Understanding the Source of Unsolicited Offers
To navigate this situation effectively, it’s important to understand why these unsolicited offers come your way. If your goal is to achieve top dollar for your home, an unsolicited cash offer may not be your best choice. However, if convenience is a higher priority for you, then it may be worth considering.
Begin With the End in Mind: Start with a Free Home Value Estimate
Before making any decisions, it’s essential to get a clear picture of your home’s worth. By knowing the value of your property, you can better weigh your options and decide whether an unsolicited offer aligns with your long-term goals.
Seek First to Understand: Where Do Unsolicited Offers Come From?
Unsolicited offers can come from various types of buyers. Let’s break down who they are and why they might be reaching out to you.
1. Wholesalers: The Middlemen of Real Estate
Wholesalers often approach homeowners with unsolicited offers, aiming to negotiate a below-market sale price. Their goal is to find properties at a price low enough that both they and the investor can profit. Typically, the wholesaler does not actually purchase the home but rather assigns the contract to an investor, earning a finder’s fee in the process.
2. Real Estate Investors: The Flippers and Holders
If you’ve ever watched HGTV’s house-flipping shows, you’re familiar with the concept of real estate investors. These buyers are looking for properties they can either fix and flip or hold as rental assets. Because their goal is to turn a profit, their offers often come in below market value.
3. Homebuyers and Real Estate Agents: The Dream Home Seekers
Not all unsolicited offers are about financial gain. Sometimes, homebuyers or their agents are looking for a specific home in a competitive market. They may send an unsolicited offer to avoid the bidding wars that can drive up the price on listed properties. These buyers may be more willing to offer a fair market value, especially if they intend to live in the home.
Think Win-Win: Should You Sell to a Home Investor or List with an Agent?
The decision to accept an unsolicited cash offer or list your home with an agent should be guided by your priorities. Are you looking for the highest possible return, or is a quick, hassle-free sale more important?
Unsolicited Offers Are Often Lower Than Your Home’s Market Value
Investors aim to profit from your home, which means their offers may be lower than what you’d get by listing on the open market. However, they may offer the advantage of a faster, more convenient transaction, which could appeal to you if you value ease over maximizing your sale price.
Put First Things First: Steps to Reduce Unsolicited Offers
If you’re not interested in these offers, there are steps you can take to minimize them:
- Register on the National Do Not Call Registry.
- Block unwanted calls and texts. Use your phone’s features to silence unknown numbers or download a call-blocking app.
- Request removal from contact lists. If a company contacts you, ask them to take you off their phone and mailing lists.
- Opt-out of direct mailing lists. Services like the Data & Marketing Association can help you manage your mailing preferences.
Consider All Options: What to Do if You’re Considering an Unsolicited Offer
If you’re tempted by an unsolicited offer, pause, and reflect. Before deciding, consult with a local real estate agent to determine your home’s fair market value and weigh your options. Consider factors like staging costs, home repairs, closing fees, marketing time, and escrow duration. By weighing the effort and expenses against the convenience, you can make a decision that aligns with your values and goals.
The Bottom Line: Think Effectively Before You Act
Before jumping into a decision, consider how much you’ll net after expenses and how much time and effort the sale will take. By aligning your actions with your principles, you’ll make a choice that truly benefits you in the long run.
Kyle Alfriend has been investing in real estate for over 35 years, assisting over 3,000 clients in buying, selling, or investing in real estate.
For more tips on buying, selling, or investing, or for a personal consultation, contact Kyle Alfriend, (614) 395-1776, or info@AlfriendGroup.com. Or go to our website, AlfriendGroup.com