We know what it’s like to work with cash buyers. We actually have gone through the process as a seller ourselves. As the experience was fairly negative, we saw an opportunity to add value by providing a service with the integrity we found lacking, which is what led us to start Trademark Properties.
However, clearly not all cash buyers are bad. Some are really great companies. As much as we strive to provide the best service we can, there are times others can provide more. Though it’s our goal to never be “out served” by another, our ultimate goal is to find the best situation for a seller and have their best interests at heart, regardless if that means going with us or someone else. For those considering other companies, or just considering a cash buyer in general, we thought it would be helpful to give you some intentional items to ponder in regards to going with a certain cash buyer or not.
What is their closing rate?
For many cash buyers, they aren’t buying the property themselves. They agree to an offer amount with you the seller, and then pass the property on to their list of local investors, who in turn then purchase the contract from them (often referred to as assignments or wholesaling). Sadly, there was some unethical training that made its rounds that pushed wholesalers to simply get the property under contract with a seller, and then if they couldn’t find another buyer/investor to sell the contract to, they would just pull out last minute. The result? Zero risk on the wholesaler, and the seller is left in a position where they were counting on a sale that never happened.
So, a good question to ask is, “What is your closing rate?” If they dance around the question, I would take that as a bad sign.
At Trademark Properties, we have never had an issue closing. We’re also completely up front with you at the beginning of the process so you know exactly what our strategy and buying options look like. There are no surprises or attempts to “hide” things from you.
Are their offers continually changing?
It’s not uncommon for there to be an “initial offer” and then a “final offer” for some cash buyers. Often it’s the practice to entice you into working with them with an offer that sounds really glamorous. However, as the process continues, often new “issues” are found and the offer changes. At this point you’re already so far down the road with them, or they’ve convinced you how big these issues are, that you can feel stuck to continue with them.
So, a good question to ask is, “Is this offer ever going to change? What factors would lead to it changing?”
At Trademark Properties, when we give you our offer, that’s our offer. We don’t use it to “get in the door” to then talk it down. If anything, we try to work with you to get our offer UP, not the other way around! Now, there may be situations where something comes up that wasn’t disclosed earlier. Our mantra is we are honest with you, so we ask for honesty in return.
Are there any surprising costs or fees?
If you’ve ever sold a home, you know that the amount of money you “sell” the house for is far from the check amount you actually get to take home. That’s one of the huge advantages of a cash buyer vs listing your property. However, if not intentional, the same thing can happen with cash buyers.
So, a good question to ask is, “How are closing costs and other fees handled? Who pays for those?”
At Trademark Properties, we pay for ALL the fees. There are no hidden costs or secrets. There won’t be any surprises. The offer we give is the dollar amount on the check you receive. This is important for apples-to-apples comparisons, because if someone offers you $100, it looks better than a $95 offer. But if in the end after fees you’re only getting $93, the second option is the more advantageous.
Are you treated like a human, or just a transaction?
No one likes being treated like a number, a sale, or a transaction. It’s easy to sniff out when it’s all about the money.
At Trademark Properties, yes, we are trying to be stewards of our business and need to make a win-win, but we commit to hearing your story and thinking of creative ways to make this a win-win that fits your unique situation. We commit to truly finding a way to help you accomplish what’s important to you.
Are they open about their process?
Does the process feel overly complicated, or almost secretive? I assure you, as someone that does this, it’s not. There should never be a part of it that you don’t understand, or that the buyer tries to make you feel “stupid” for not knowing or understanding.
At Trademark Properties, we strive to explain our process thoroughly, including how we make money! Our strategic approach (and priorities) is simply to see if we can 1) keep the property to rent, 2) renovate it to then sell, or 3) connect to another business partner who may have more strategic interest in it. We are a service company that provides ease, accommodation, and security by taking on the labor, time, and risk of a property.
What are their sales techniques like?
No one likes pushy salesmen. You instantly get the slicked-back hair, used-cars-salesmen image in your head. Yuck. If anyone is trying to force you to sign a contract or trying to push scare tactics on you, please please please just walk away!
At Trademark Properties, yes, we want do well for our business, but we also equally want you to succeed as well. That’s why they call it a win-win. That takes a conversation, an attempt to get to know your circumstances, and to see what ways we can be helpful.
Do you have current tenants? How are they going to treat them?
This is personally one of the most upsetting. For many cash buyers, they get fresh eyes on your property, and think about all the ways they can increase the income generated by the property. Often, this means raising rents or other burdens on tenants after the sale. Many times, this pushes families out of their homes.
At Trademark Properties, we not only focus on treating you with dignity and respect, but also your tenants. You can rest assured we will care for them well as the new owners.
How are they going to care for your property?
From our time in real estate, there is one thing I know – every property has a story. As the property owner, there is likely a lot of “you” wrapped up into this property. There may be some really positive memories. There may be a lot of time and energy poured into it. A property is just a mass of drywall and studs. It’s a place where real life and memories happened.
At Trademark Properties, we understand there is a story, and take the time to try and hear about it. We realize a lot of “you” has been put into this property. We want to honor that.
At the end of the day, is it just all about the money?
Real estate is an attractive thing, and can attract people that want to utilize it simply for their own personal benefit. Being success isn’t a bad thing, but if the ultimate goal is always the sale and the money, that’s going to impact how decisions are made.
At Trademark Properties, we’re a proud member of the Real Estate for the Common Good Collective, which strives to use real estate to help make a better world. We love our community, and think there is a way for us to do well as a business while also seeking the welfare of our neighborhoods and communities. At this point, all of our profits go to local charities to help make the Twin Cities the best place it can be. We also provide and hold our staff to a high level of volunteer work and engagement.
We do think there is more to life than just money. We also think that as you better a city, all the ships in the harbor rise with it. Though we are just one small piece to the puzzle, by selling to us you’re helping the Twin Cities become a better place, where more jobs become established, wages increase, areas become more desirable, more opportunities arise, and so forth.
Would you consider us?
As mentioned above, we unapologetically would love for you to consider working with us. We’re confident we could provide you the best service available. However, even if you find yourself working with another cash buyer, we hope some of these questions will help you avoid a negative experience, and ultimately give you the time and energy to focus on the “more important” things in your life.