Buy Your Home Letters from Developers

Beware of “Buy Your Home” Letters from Developers

Every week, Buy Your Home letters arrive in your mailbox promising quick cash for your home—no fees, no commissions, no hassle. Some even claim they can make an offer over the phone! That alone should raise a red flag.

If you’ve lived in your family home for decades and are considering downsizing, selling to a developer may seem appealing. No need to declutter, stage, or make repairs—just sell and walk away. But what’s the true cost of that convenience? After all, nothing is free.

How Developers Target Homeowners

Developers send out “Buy Your Home” letters in bulk, hoping to find sellers willing to offload their property with minimal effort. These developers operate to make a profit, and without a buyer lined up, they must factor in transaction costs, carrying expenses, and eventual resale value. The process—buying, securing building approvals, construction, and selling—can take a year or more, driving up costs. And ultimately, those costs affect the price they offer you.

The Hidden Costs Behind “Buy Your Home” Letters

Beyond the sale, developers incur additional expenses: closing costs, demolition, permitting fees, and the price of holding an empty lot until construction begins. Plus, they must price in their own profit margin. As a result, the offer they make to you is often far below market value.

Smarter Alternatives to Selling Your Home

If you’re downsizing, your home’s equity is likely your biggest financial asset. The goal should be to maximize your return while minimizing stress. Many sellers prefer a fair sale price rather than the highest price, especially when they want to avoid repairs, decluttering, or making uncertain upgrades.

Turn The Tables on those Buy Your Home Letters

One option? Instead of selling directly to a developer, reach out to builders who have already completed projects in your neighborhood. Sometimes, they have buyers searching for properties to construct a custom home. This can lead to a significantly better price because the buyer is investing in their future home—not a speculative project.  We recently used this approach for a client who wanted to sell with minimal fuss.  We called lots of builders who had worked in the neighborhood to find one with a client who a new home in that particular neighborhood.  The seller closed with the buyer for a much higher price than the builder would have been able to pay.

Another Real Seller Success Story

In one case, a seller considered a developer’s low offer. Instead, we listed the home and secured a buyer willing to pay $200,000 more—without tearing the house down. The buyer wanted to be in the Whitman High School district and saw value in a 1950s split-level that could be updated over time.  The only improvement the seller made to the house before going on the market was to replace the non-working dishwasher.

Get an Appraisal Rather Than Trusting Those Buy Your Home Letters

Other sellers considering retirement were considering selling to the next-door neighbor.  The only problem was that the sellers had no idea about the true value of their home.  I suggested that they get an appraisal rather than rely on the price offered by the neighbor.  The appraisal valued the home at $1.6 million and the neighbor said no!  Instead, we listed the home for $1.7 million and attracted multiple offers—eventually selling to a developer’s client for $1.81 million, along with a four-month free rent-back for the sellers.  At closing, the sellers said that they never expected to have that much money in their checking account – ever.  They were two people who had worked in research their entire lives.

Thinking About Downsizing? Let’s Talk

You don’t have to settle for less than fair market value or sell to a developer just for convenience. We can help you transition smoothly—whether that means clearing out decades of belongings, finding a new home that fits your needs, or preparing your home for sale without unnecessary stress.

There are many options beyond the “Buy Your Home” letters sitting on your kitchen table. Let’s discuss the best path for you.

Why Work With Lise?

With 37+ years of real estate experience and a background as a licensed attorney, I offer expert guidance and strong advocacy. Whether you’re buying your first home or downsizing to a co-op, I ensure a seamless, stress-free experience.

I specialize in condos and co-ops in Chevy Chase, Bethesda, and DC. Let’s grab coffee (and maybe a pastry!) and talk about your goals.

📞 Call me at 240-401-5577 📧 Email me at lise@lisehowe.com

Let’s make your next move the best one yet!