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Posted by admin on August 6, 2021
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What are the benefits of using the real estate buying-in service?

Fast cash and a lot of time. What transaction can bring such benefits? Today we will discuss one of HomeBrand’s core businesses, namely real estate buying-in.

REAL ESTATE BUYING-IN

Do you have negative associations with buying-in? Do you believe it is something you should not consider, because you will not get a good offer from it and you will give away something valuable and get nothing instead? It would seem that in this case it is the same thing. But nothing could be further from the truth!

What are the benefits of selling a flat or other property through buying-in?

To understand the advantages of this type of selling, it is worth to understand the characteristics of other methods.

The contrast captures all the nuances.

CONTEXT – STANDARD REAL ESTATE SALES CHANNELS

There are two standard ways of selling. Either someone sells the property themselves to avoid incurring costs (which is not always beneficial from an economic point of view, but we wrote about that in another blog post). The other standard way is to hire a real estate agent(s).

In the first scenario, we are faced with an iceberg of challenges, documents, issues and time consumption. And at HomeBrand we always stress that time is the greatest value, because we cannot buy it. We mean all those idle meetings with potential clients (who will not buy anyway).

As for the second option (hiring an agent), we can say that it is a better way because it saves time. But it is not necessarily the best possible choice.

Why?

It is worth understanding some peculiarities associated with hiring an agent (or more generally: a real estate agency). If such an agency has an exclusive right-to-sell agreement, it will earn a fixed commission, regardless of whether or not they close the sale of the flat. In addition, the agency agreement does not allow us to cooperate with other agents during the whole term of the agreement. Usually the duration of such an agreement is approximately 12 months.

If it is not an exclusive right-to-sell agreement, according to general data, in Poland the sales process (from expressing the will to sell to closing the transaction and handing the keys over to the new resident) takes from 2 to 3 or even 4 quarters. This is quite a long time.

To make matters worse, the buyer most often finances the transaction with a mortgage, not out of their own pocket. And this is another piece of the prolonged operation. The process of obtaining a mortgage can sometimes drag on for several months.

The agent’s commission usually amounts to several or up to a dozen (several dozen in the case of larger projects) thousand zlotys. There is no legal limit for this amount.

HOW DO YOU BENEFIT FROM SALES THROUGH BUYING-IN?

The information discussed above is the foundation that now allows us to outline the advantages of using a property buying-in offer.

The most important benefit for the client comes first, which is time. If you have all the transaction documents ready, you can have the funds on your account within one day!

That is a difference, right? 1 day compared to 180 days (assuming the sales process through an intermediary takes six months) is a huge advantage. First and foremost, it allows you to commit to your professional life without being unnecessarily distracted.

And what about the money? Are the purchase prices offered through buying-in below the break-even point? Usually the buying-in offer may be slightly lower than the selling price through an agent. But if you add all the associated costs, it may turn out that you do not lose at all.

But these are not all the advantages. Property buying-in solves the problems which an ordinary agent will not handle.

Currently it is virtually impossible to find a competent agent to deal with the sale of problematic properties. Problematic?

We mean:

  • Unprofitable real estate (due to location or technical condition),
  • Indebted real estate or purchase of a part of a property,
  • Real estate with a bailiff assigned so it is not auctioned off,
  • Real estate which is in a very poor technical condition and suitable only for major renovation,
  • Real estate subject to inheritance.

CONCLUSIONS

Now the question remains: Is it worth trying the real estate buying-in service? Definitely yes, if:

a) You look for quick cash,
b) You do not have +/- 6 months to carry out the entire sales process,
c) The property you want to sell is unprofitable, in some way unattractive or there are debts against it.

If you would like to assess the value of your property online, simply contact us through the form. At HomeBrand we assess, value and buy properties every month.

We can help you too.

Możemy pomóc również Tobie.

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