You may have heard of these companies and wonder if they are really paying cash and if they are legit. More importantly, you may be wondering how they work.
We Buy Houses companies buy distressed sellers' properties at a discount price. They can purchase an inherited house, a home that needs significant repairs, a rental home with terrible tenants, or a property in imminent foreclosure. Comparing offers from multiple cash buyer companies is a great way to sell your house quickly.
You might consider selling your house to a cash company if you want to move quickly and without spending too much. These companies offer quick closings and make offers quickly so that you don't have to worry about significant home repairs. They often buy houses "as-is," meaning that you don't need to worry about hidden problems. This is a good option for those who are ready to move but don't have the funds to do extensive renovations or just want to get rid of their house quickly.
Home buyers have many options for buying a home with cash. You can use a buyer's representative to help you buy a home. This means that you would pay their agent's commission even if you don't use an agent. These buyers have cash in hand and don't need traditional financing.
Local investors, also known as flippers, are people who purchase houses "as-is" at below market value and then spend time and money fixing them up. The house is then put back on the market to make a significant profit. This type of investing is growing in popularity in the United States.
Flipping is risky as property values can change rapidly, and investors could lose money if the house requires more work than they initially thought. Flippers often buy houses "as-is" in any condition, including fire and water-damaged properties.
iBuyers is a company that can buy your house. These companies are increasingly popular online and often operate without the presence of local agents. These companies offer to buy homes directly from sellers without ever visiting the property. Accept their offer if you are happy with it.
The process is generally the same, no matter which company you choose to work with. It starts with you contacting them and giving them some basic information about the home. Most of the companies will immediately make a preliminary offer on your property. If their offer is in the ballpark of an acceptable number, they will then schedule a walk through of the property to verify it's condition. Their final offer will be adjusted to account for any necessary repairs. The company will then make a final, adjusted offer, either higher or lower than their original. If you decide to accept the company's final offer, you sign a purchase agreement and schedule closing. It's usually just that simple.
If any of the following scenarios apply to you, it might be worth it to contact one of these companies.
If you want to get the absolute maximum amount of money for your home, it makes sense to widen your pool of prospects to include buyers who will use financing. Buyers who finance have more money than buyers who pay cash. A qualified agent who is experienced in selling houses to buyers who are willing to finance your home is an excellent way of getting the best price for your property and avoiding any problems later.
You're more likely to get higher offers if your home is listed with a realtor than if it were sold directly to a buyer. The average offer for financing is higher than a cash offer. This is because homeowners don't want any extra money. Be sure to include the cost of home preparation (e.g. roofing, new windows, and fences) as well as the commission paid to the real estate agent. You may get a similar amount from a cash buyer to what you would with traditional listings if you invest a lot in the house and then have to pay fees of 5% to 6%. Before making a decision, weigh all the pros and cons to determine if selling your home with a traditional real estate agent, or to a company that buys houses is the best choice.
Listing your home can make you the most money if your home is in good condition and no major repairs are required. A strategic mistake is listing your home with little risk of potential inspection repair requests. It could cost you the chance to get a higher offer than you had hoped for. You should put your home up for sale and see what happens. This is often the outcome of a bidding battle if you're debating whether to list your home.
Even the most successful businesspeople have lawyers. Most we buy houses companies are no exception. Real estate investors have a slightly different job than businesspeople in that they need to consult an attorney regularly, especially when preparing contracts. Your attorney should review the contracts before you sign the dotted line.