I live in a neighborhood where the average home price is somewhere in the low to high 200s. Recently, I noticed that three people in the last year alone have sold their homes for far less than market value. One neighbor I know, for example, sold their house for just $150,000, even though it was easily worth up to $250,000. This means they missed out on around $75,000 – that’s enough to cover a full year’s household income and then some.
Another neighbor across the street, a retired couple, sold their house to an investor for only $170,000. The investor then spent maybe $25,000 on updating the paint and fixtures, and sold it a few months later for $285,000. The updates weren’t even necessary, as the house had been well taken care of and wasn’t that old. The couple lost out on anything between $55,000 and $70,000, likely because they wanted to make the deal quickly and easily.
Sometimes, selling your home for an “instant offer” can be a good deal. But it’s worth noting that these investors make the process so simple and fast because they’re taking most people for a ride and making insane profits from it. The last couple of years have seen some of them particularly profiting from this.