Why public insurance adjusters work with real estate investors
Public adjusters are hired by homeowners to maximize insurance payouts, particularly after a calamity like a fire or flood. After extensive damage, however, there’s a big question as to what to do with the property. In some cases, the homeowner will move out and returns when extensive work is done. At other times, the homeowner might prefer to keep the insurance check and sell the property as is. That’s when house flippers, such as Handsome Homebuyer, become the perfect buyer for the property. A real estate investor can truly be the ideal buyer for a house following damage. Public adjusters currently refer clients to us and if, we purchase the property, they get a fee. We have bought more than one property through deals initially referred to us by adjusters, whose clients get a cash payout while they get a fee.
What adjusters do?
insurance adjustors are public adjustors hired by homeowners or property owners when they experience some type of insurance loss, whether that be fire, flood or other. Public adjusters are retained by the homeowner. They get a percentage of what they get from the insurance company. In a lot of cases, a property has significant damage after a disaster such as fire or even extensive mold damage from a flood. That can make a traditional sale tough, but can be a good match for Handsome Homebuyer, specializing in the New York metropolitan area, and house flippers in general.
What to do with a damaged house?
After extensive damage, a house often can’t be inhabited without extensive work. The homeowner may have to gut the house. If the homeowner wants to return to the house, they typically must find another place to live, which brings inconvenience and expense. They can then move back into the house when the work is done. This prolongs the pain caused by the damage, but can lead to a return to a house even better than before the damage occurred.
Selling after damage
If the homeowner decides to sell, they may face big obstacles in finding a traditional buyer. The house may not be in good enough shape for a bank to issue a mortgage. New residents may have to do extensive work. Adjusters in addition to estimating damage often refer homeowners to Handsome Homebuyer as a buyer. Often, the person who owns the house isn’t interested in rebuilding a brand new house. They would rather take the insurance check, sell the property and buy another house. Insurance adjusters recommend Handsome Homebuyer to meet the owners. It’s a good value add for their people and they get a referral fee.
Why a real estate investor may be right
A lot of times, it’s financially beneficial for the insured to sell the house to Handsome Homebuyer. We buy with cash, don’t need a mortgage, can close quickly and are in the business of renovating, in any case. We can renovate the house much more cheaply than they can. This is what we do for a living. They will get paid as if they hired a contractor and will walk away with a large check for the house. If they sell Handsome Homebuyer the property, the homeowner often receives significantly more, including insurance and sale price, than they could otherwise. In one scenario, the owner could bet paid $400,000 to renovate a house worth $600,000. After taking the insurance check and selling us the property, they can walk away with $725,000 and buy another house. It’s sometimes possible to take something traumatic, and negative, and find a positive.
Why we pay more
Most people see renovation as an expense, a hassle and a big negative. They want to buy a house ready to move in. At Handsome Homebuyer, we can renovate the house at a wholesale cost. We project the sales price after renovation, including profit, letting us pay not just for what we see, but based on the value we plan to increase. If the homeowner takes that money and sell the property as is, they in many cases will walk away with more money than the property was worth before the fire or flood. Then they can buy another house and not have to deal with the construction process.
The fee factor
Adjusters typically like how aggressive we are in our pricing and how pro-active we are in our customer service. As soon as we get information, we contact people, see the property and make an offer immediately. There is no bureaucracy. The customer experience is very good, which is good for the owner and the adjuster. On top of that, we will buy any type of property. Adjusters don’t want to deal with a million people. If they get a commercial building, an apartment building or a house, they call Handsome Homebuyer and we’re able to buy it. Most importantly for the adjuster, they get a significant referral fee.
A smooth process
We all want a smooth process and with Handsome Homebuyer, that’s what you get. We understand that this could be the biggest financial loss of the adjuster’s client’s career. We sympathize with that and we offer white glove service. We handle their client with the utmost care and patience. With some of these people, it’s a therapy session. We may have to wait two or three months until they wrap their head around what happened. They try to put together lists of contents in the house, which can be time-consuming and emotional. We recently bought a house from a woman after it burned to the ground. The foundation was there along with a lot of rubble. She was looking for missing items. We spent an entire day taking the items out of the basement for her, so she could look through and see if any of those contents were there. After a disaster, you don’t want to make things worse. Handsome Homebuyer can help the adjuster and the homeowner make the best out of the situation. Since we specialize in renovating houses, we’re often ideal buyers for houses after adjusters get called in.