Bandit Signs are a guerilla marketing tool for investors and lead generation companies. Sellers are often duped into thinking those cute little handwritten notes left on their front doors were a flattering sign that someone really wanted to buy their home. Unfortunately, no. These are the sales tactics taught in hundreds of online courses on how to buy houses to fix and flip, flipping wholesale, selling leads for profit, etc.
CASH bright yellow bandit sign
Handwritten Bandit Sign
These signs are usually found on busy street corners. Usually against local ordinances, they are usually only there for a few days before getting taken down. Then, after a few days, the culprit goes and puts up new signs, often with another number. These signs come from various real estate investing strategies learned from popular online paid courses and investing systems. Another way companies use these signs is for lead generation for owners of real estate looking to sell. Owners call the number, their contact information is collected, and that "lead" (seller information) is sold to real estate agents paying for "seller leads" or to investors looking to buy real estate property lower than market value.
Owners of homes that get these seemingly handwritten personal notes left on their front door or in their mailbox often are flattered. Wow, someone like my house and wants to buy it! It seems good, right? Let's just sell to a person directly, instead of paying a realtor commission and going though the process of listing the house for sale, showing it, dealing with inspections and appraisals, etc. Just sell it directly to the guy that really likes my house!
It's unfortunately not that simple. This not isn't handwritten. This investor or company made thousands of copies, had them cut, and they drive around all day posting them to every house they think may be a potential seller. They know most of them will be thrown out. But they consider the venture successful if just .5% of all the bandit notes prompt a call in. That call in means the owner is possibly interested in selling, they collect the contact information, and the sales strategy begins! You'll go on mailing lists, your information will get sold to realtors looking for homes to sell, or an investor will keep calling you with offers to buy your house for below market value. They've gone through the course, they've done their homework, they're using the system. And the owner of the house has no idea. They're just happy liked their house enough to write a note and express their interest in buying.
For a seller, it's important to understand the nature of the solicitation. The bandit sign is used as part of a specific sales strategy. When you are aware of this, you'll be able to make a much more informed decision going forward. What if they hand you a written offer to buy your house? They'll tell you they are saving you from paying a realtor commission. They'll be able to close the sale within 30 days. They'll make it sound great. So what's the catch?
Know your the true market value of your property. The investors/sales people behind the bandit signs are using this sales strategy to buy houses at below market value. Often SIGNIFICANTLY lower than market value. Why? Many of them are trying to do "wholesale flipping". Simply put, they buy very low... get into a contract with a seller... and assign the contract over to a different buyer during the process and before closing, for a higher price. They make a small profit by flipping it quickly to another buyer for a higher amount. Sometimes these buyers can't find a another buyer to flip to, and they find a way to cancel the contract, so beware that could happen. But the biggest drawback is that simply, as the seller, you are selling for an amount much lower than you could probably sell for on the open real estate market even if you use a realtor and pay them a commission. Why? It's 2017. The real estate market is healthy again, and is continue to strengthen every month that goes by. Why sell lower than you need to?
If your property is in Miami, request a free no obligation market value report to find out what your home would sell for if you list it with a realtor. The more information you have, the better decision you'll make for yourself. Don't sell yourself (or your property) short!
No matter where your property is located, there is a very nice licensed real estate agent that would be happy to provide you with a FREE NO OBLIGATION market value report. This is one of the daily services most real estate agents provide. Request a realtor market value report so you can learn what your property would sell for on the open market if listed through a real estate agency. The real estate agent can do all the calculations for you to predict your final sales proceeds: estimates for real estate commission, closing costs, mortgage payoff and what you can expect your final profit amount to be. When you have that information, you can then compare it to any private investor cash offers you may get. The more information you have, the better decision you'll be able to make!
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