I’ve been struggling financially after getting laid off about a year and a half ago and haven’t been able to find work since. I’m considering selling my house to a company like Orchard or one of their competitors. The house is in good condition, but I want to avoid all the hassle of showings and everything that comes with a traditional sale. What should I expect in terms of the process, offers, or things to watch out for? Any advice or experiences would be greatly appreciated!
For any of those companies expect to get about 65%-70% of the true value of your home. They generally prey on people who need to close asap and are too stressed out to think their options properly. The cash will come fast, because paying that low they don’t want anyone to have time to think about the decision they’re making.
Some of these companies are property vultures preying on owners in crisis. Orchard and others may be efficient and reputable, yet always remember that they are in business for their own interest and make their money by buying at modest price that enables their profit. This may be worth it to you, but also do obtain an evaluation of the likely low and medium market value of the house from a reliable assessor.
Watch the terms. Some offer an appealing price but it includes a ‘due diligence’ contingency where they will demand a lower price (with no real reason) and be able to void the contract if you don’t agree.
Is Orchard one of those buy as is, cash, close in a week? Then ask them. It’s as easy as that with those companies. They put all the cash in your account, you sign away, and that’s all there is to it. I guess you can expect your check in a week.
You will get probably 15-20% less than selling the old-fashioned way, even with realtor fees.
I am representing a seller who purchased an off-market home last year. My seller purchased for $80k more than the off-market company purchased the home for because of fees he was told. And now because they weren’t able to have an inspection before purchase, they have way more to fix than expected. So my seller is now looking at having zero profit because of all the issues they have had to address in order to resell.