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Things to Know About Cash Home Buyers of South Carolina

Many owners have held on their properties waiting to change the market, but the promised upswing is still in sight. House hunters are searching for values, but may be disappointed when they discover that funding is not readily available for worn and aging homes that were built one or two generations ago for families. There are still plenty of great values available, but shoppers may not want them to be exactly imagined. Cash Home Buyers of South Carolina, LLC-House Buyers is an excellent resource for this. Smart home buyers choose to look past what currently exists and envision the new house they might build by renovating. Nevertheless, the lack of financing for houses that require renovations means that all cash home buyers are often the only buyer.

Many of today’s buyers are skilful investors and remodelers paying all the cash.

These investors have opened up a cottage industry which offers the market stability and liquidity. A large percentage of new home buyers may have high-quality credit scores and qualify for a new purchase but they do not have the capital or expertise to buy a property that needs to be renovated. This scenario maintains market liquidity, thus replacing older stocks with new ones.

Banks are reluctant to provide funding, even at discounted prices, to a new buyer for a home that needs renovations or substantial improvements. The buyer is often an accomplished contractor with the ability to buy all of the cash, renovate, and then market the property for sale. Because of the limited risk, banks are much more comfortable providing financing for those restored houses. Today the last thing banks want is risky transactions. They are searching for a sure bet.

Experts who have developed well oiled businesses are the most successful investors.

Typically they are specialized in the size , type and defined geographic areas of a property. To succeed they require a fair amount of volume. An investor who buys 25 properties a year will keep 2-3 construction crews continuously busy during the year. The use of and proper management of the same crews removes the guesswork from a remodel.

Although the all cash investor may be able to buy at attractive prices, price is not the only important factor. Being profitable requires tremendous knowledge of how to add value to a property with the right materials, at the right price, in a short time. That means knowing where to get quality materials with a crew to stay on schedule, at the right price.

There are a number of variables which need to go right. For example the return on investment would be reduced by a property renovated in 12 months rather than 4 months. With time delays what may seem to be a winning investment can easily become marginal.

The cost of construction and of materials is a critical factor. If materials cost more than budgeted by 20 per cent, profitability may be at risk. Alternatively overpaid for the property or overly optimistic about resale price impacts investment return.

Nevertheless the rewards can be significant for those professionals who treat their investment and remodel business with discipline and focus.