Selling your home fast and with a high guarantee of success is sometimes difficult when using a traditional real estate agent, which is where companies that buy houses with cash come in.
Companies that buy houses and homes for cash fill a gap in the market where a quick sale is needed, or where your average prospective home buyer will not be as interested, such as:
- Homes that are being foreclosed on
- Homes that are deemed unsaleable and require extra work
- When employees are transferred out of the region and need to sell fast
- Abandoned homes or ones that have been vacant for a long time
- House flipping projects that failed
- Divorces that require a quick settlement
- Homes on probate
What are these companies doing?
To understand their objectives, we should view a company that buys houses for cash as a real estate entrepreneurial group.
Their goal is to purchase houses and homes quickly and easily so that they can either resell, flip, or use the properties as investment opportunities.
The pros and cons of selling to one of these companies are slightly different than through a realtor, however the process and benefits are more fitting for those who struggle to sell their property or need a more reliable sale, fast.
These property investors pay cash for homes because they realize you will need to close the sale quickly.
They have the funds available for you without any need of applying for a loan or consulting third parties, and because it’s a cash sale, there isn’t a fee or realtor’s commission.
How is this different from other sales methods?
First of all, instead of contacting a realtor and putting a “for sale” sign on the front of your property to attract prospective buyers, you will instead need to go out and contact the home buying company.
Often enough, there will be signs in neighborhoods or around cities saying: “we buy houses”.
This is a commonly used calling card, although a quick internet search will find you a number of companies who buy properties for cash both locally and nationally.
This is not a new approach to real estate; real estate entrepreneurial groups have been around for decades, meaning it is a tried, tested option for its niche market.
According to Aaron Norris, vice president and real estate investor of the Norris Group in California, there are two types of home buying companies:
- Local real estate investment companies who are interested in investing in the community and the general local area.
- National real estate investment companies, also known as iBuyers, who make offers on homes based on provided information without seeing the home in person. These companies make purchases throughout the entire country and sometimes internationally.
Both of these company types can provide you with similar services like as-is home purchasing and quick closes, but there are some key differences.
Since most iBuyer groups won’t have people on the ground in every area, they will be less likely to take on large projects and won’t be good at communicating over the distance.
Local real estate investment companies will hire local, buy local, and be more thoughtful and communicative in the process, although whether one of these groups will be available or reliable will depend on your location and who is operating in the area.
Who are some of these companies?
Here we have a general list of 5 of the more popular companies for you to look through and get an idea for some of the names.
Starting off with Networth Realty, you will be pleasantly surprised to know that they dabble in both sides of real estate, offering realtor services alongside real estate cash purchases.
Because they do both, they help homeowners decide which route is best suited for them
Enlight Home Buyers
A newer player to the real estate investment business, Enlight Home Buyers have a strong presence in Utah while also purchasing in New Mexico and Indiana.
This group is willing to purchase any property in any condition, whether there’s considerable damage or pest infestations.
They also allow sellers to choose their closing dates.
Being internet-based, iBuyHomes is a national real estate investment company that has, in the past, been able to close real estate sales in 36 hours.
This is the perfect option for anyone who needs to instantly pack up and move on from their house.
Fast Home Offer
Located and based in Texas, Fast Home Offer is a company that purchases properties internationally as well as in the U.S.A., closing sales in Canada, Mexico, and Australia.
They also take on a range of different properties, just in case you feel that your property won’t be of interest to one of these companies.
They purchase apartment complexes, commercial buildings, raw land, mobile homes on plots, condos, and townhouses.
We Buy Ugly Houses
Being around for over 30 years and with one of the most visible advertising campaigns, we are sure you would have heard of these guys before.
As a national real estate investment company, We Buy Ugly Houses tends to go for a wide range of different property investments, although like many national companies, you might find it a bit difficult to sell them a house that has sustained considerable damages, although this is on a case by case basis and solely due to distance.
What are the positive aspects?
As mentioned above, some of the positive aspects of this process involve closing sales quickly, skipping on realtor or third-party fees, and being able to sell a house that is damaged and needing repairs.
Additionally, if you still owe money on the house, regardless of the size of the mortgage, you will still be able to sell to one of these companies.
This will be one of the first things they will ask you, but unfortunately, if the mortgage is quite large, then you might not like the offer they give you since it is common for them to just cover the mortgage to get you out of debt.
It really depends on what your situation requires.
What are the downsides?
As investment companies, these groups are going to try and minimize their own losses, which also means that they aren’t going to pay the market price of the property.
Most companies offer 65-75% of the market rate, and if you are willing to put the time in to get the most for your property then this option is likely not for you.
For more information, or if you wish to get the ball rolling to sell your property quickly without any problems, please give us a call.
Tips for maximizing your offers
- Research every company you consider approaching. Scams and bad deals can happen to those who don’t verify who they are dealing with.
- Use this as a great last resort. Look at other alternatives and use this as a way out when you just need your house gone.
- Get offers from at least 3 different companies. Avoid getting lowballed and look at what others can offer.
- Ask questions. The process and terms can differ between companies, and you aren’t represented by an agent or third party. Check when you need to move out, who will pay off the mortgage, and more.
Warning signs to look out for
There are illegitimate people who try to swindle homeowners, so watch out for the following:
- If they refuse to give you the name of the company or representatives, or give you a fake number, don’t book any appointments with them.
- If they discuss fees for the sale, then they probably are not legit since it’s a cash sale.
- If you can’t find any information about them online, don’t trust them.
- If they can’t offer proof of funds and that they have the capacity to pay you once everything is signed, don’t take them on their word.
- If you research the owner or employees and find a criminal history, or can’t find anything at all, move on to someone else.
If this is the option that you have been searching for to guarantee the sale of your house, click here for the next step. We would love to hear from you and as specialists in the field, we can provide you with the right information and services.