Houses are selling faster than ever in the USA, averaging just 71 days from listing to closing in 2022.
Do you want to sell your home a lot faster than that? Are you tempted to Google, ‘we buy houses companies’ in your area, but not sure how they work?
Keep reading to find out the pros and cons associated with we buy houses investors in your area.
Types of We Buy Houses Companies
These cash home buyers do exactly as advertised. They buy homes in any condition, and they pay cash. They’re a great solution for homeowners who:
- Have inherited an unwanted home
- Are upside down on their mortgage
- Need to relocate fast
- Have a home that needs extensive repairs
- Want to sell their home as quickly as possible
While most of these companies offer honest, upfront service, they don’t pay high prices for homes. They usually only offer 70% of what your home’s worth after repairs, minus the cost to repair it.
There are four main types of companies to choose from when you want to sell your house fast:
Fix-and-Flip Investors
These companies buy run-down homes and then renovate them for resale. It can take them up to six months to complete this process. After that, they start to lose money on the deal.
In some cases, they won’t accept extremely run-down properties that they can’t turn around in this time frame.
Buy-and-Hold Investors
buy-and-hold investors buy homes in sought-after areas in order to rent them out after they’ve completed the repairs. In some cases, these investors must still arrange finance for the sale before they can close on the deal, and this delays the process.
Franchise Cash Buyers
Franchise companies buy houses for resale and rental. These major players work with local cash home buying companies and contractors to buy, repair, and sell houses across the country.
Each franchisee pays a portion of its profits to the franchisor and must comply with the ethical standards of the parent company.
iBuyers
iBuyers came are among the most rapidly growing cash investors in the market today. These buyers work with major property investors and focus on homes in relatively good condition that they can sell or rent after a few repairs.
As a result, they can offer slightly higher prices and close extremely quickly on a sale, but they don’t accept homes in poor condition.
A Traditional Sale vs Cash Home Buyers
Working with a realtor definitely has a few perks, but it isn’t a push-button approach by far. You’ll still have plenty of things to do when you sell your home this way.
This home seller checklist gives you an idea of the steps involved when you sell your home with a realtor. As you can see, this is a lengthy and costly process.
On the positive side, you’ll get the market value for your home when you work with a realtor, and you’ll benefit from their far-reaching marketing network for selling your home as fast as possible.
You can also count on their expertise when it comes to the legalities of selling your home and negotiating with buyers.
Most of the negatives involved with selling a home this way involve the lengthy process and costly repairs inherent in a home sale.
When you work with a cash home buyer, you won’t experience any of these hassles. You don’t need to perform any costly repairs, go through the ardors of open house days, or wait months for the buyer to achieve the finance they need.
These companies have the skills and experience to deal with complex issues like unpermitted work, squatters, and difficult tenants, too.
Although you don’t pay commission to cash home investors, you will face a big reduction in the sale price of your home. These companies aim to buy houses as cheaply as possible, so they can keep their businesses afloat.
Some distressed buyers might find the tactics employed by these buyers a little intimidating and pushy. Others are simply grateful to find someone to take an unwanted home off their hands.
What’s the Process for Selling Your Home to a Cash Investor?
Most we buy houses companies will make a preliminary offer when you enter your home’s details on their website, via email, or call them to discuss the sale.
After that, they arrange to inspect your property and will make a firm, written offer either on the spot or shortly afterward.
If you accept their offer, you sign the paperwork, agree on a closing date, and receive your cash. It’s a simple and fast way to get your home sold as fast as possible.
Most of these companies buy homes regardless of the circumstances. Often they will work with you to stop foreclosure on your home, and many will allow you to rent the house from them while you search for alternative accommodation.
What’s Best For Your Home?
Now that you know the ins and outs of we buy houses companies, the ball is in your court when it comes to a quick sale.
Do you opt for cash in hand quickly and lose out a little on your sale price? Alternatively, do you choose the traditional route, conduct expensive repairs yourself, and pay the agent’s commission?
Clearly, you got some sums to do to find the ideal option for you.
If you do decide to renovate and then sell, we’ve got you covered with a host of great interior refurbishment ideas to help you get top dollar for your home. Browse our website to discover them all.