Selling a house can take months and it is tough to wait this long if you are in a hurry or need cash urgently. This is where “we buy houses for cash” companies step in.
Most of these parties buy the houses “as is” and homeowners do not have to worry about making repairs and renovations.
But what are the things home sellers should know about companies that buy houses for cash? Here are some pros and cons of such companies along with reviews of the top “we buy houses for cash” firms.
Pros of selling a house to companies for cash
Fast Closing
We buy houses for cash firms act fast. This is the key advantage for most sellers. When a company or individual buys a house for cash, they do not have to go through any red tape like mortgage brokers, realtors, etc. This way they have enough flexibility to meet the needs of homeowners compared to a traditional realtor sale.
No Upfront Cost
As stated above, “we buy house for cash” firms buy homes “as is” sparing the sellers the cost of making repairs and upgrades.
But one should note that they will send an appraiser later on and deduct the cost of huge repairs from the offer price.
Hassle-free process
The process of selling the home to companies that buy it for cash is quite simple. All you need to do is visit their website, fill in your details and you can expect an offer within 24-48 hours.
Certainty
The offer extended by such companies is void of contingencies. So the sale is unlikely to fall through if they do not get the financing or the inspection doesn’t go as anticipated.
Cons of selling a house to companies for cash
Non-negotiable
“We buy house for cash” firms do not leave any room for negotiation. Their offers are “take-it-or-leave-it” and they do not welcome any counteroffers.
Lower price
Companies that purchase houses for cash are very likely to offer a price way below the market value. They do not use market trends to decide the house’s value. Instead, they rely on proprietary formulas.
Do not be shocked if they make you an offer, which is just 50-70% of the market value.
Who All Purchase Houses for Cash?
iBuyers: These are venture capital-backed companies that do all their business online. iBuyers are highly data-driven and tech-savvy. They may buy your property without even seeing it physically.
Local Cash Buyers: Such buyers purchase homes that need major upgrades and turn them into rental properties.
Traditional “We Buy Houses for Cash” Firms: These are national companies having local franchises. You can contact them over the phone or online, they will inspect the house and make an offer.
Top “We Buy Houses for Cash” Companies
- We Buy Ugly Houses
This house-buying franchisor, based in Dallas, has over 20 years of experience in buying houses for cash.
Once you contact them, a local representative will visit your property for inspection and within 24-48 hours the company will make an offer based on the condition of the house and comparative sales nearby. The entity pays the closing costs and does not charge any commission fee.
It purchases homes “as is” and closes the deal in as soon as 3 weeks. However, their offer price is way less than the market value.
- Houzeo
While Houzeo is not an iBuyer, Houzeo Reviews suggest that it is a very popular platform for sellers seeking companies that purchase homes for cash. The platform allows users to access your local MLS for a small flat fee.
Houzeo Reviews also show that it offers great technology that gives homeowners complete control of their listing.
As per Houzeo Reviews, listing the property on the MLS allows homeowners to target every company that purchases homes for cash as it is one of the best Flat fee MLS Companies.
- Offerpad
It is an iBuyer, with operations in select markets in 14 states. It makes you an offer within 24 hours of filling out the necessary information. If you accept their offer, which needs to be done within 4 days, they will schedule an inspection.
Repairs need to be made by you or you can issue the company credit. While the company offers a flat amount for the property, it charges a service fee, anywhere between 6% and 10%.
The selling price will also have to be borne by the homeowner.
- Opendoor
It is touted to be the USA’s biggest iBuyer, with a footprint in 45 markets. They are not house flippers and are therefore not looking for properties in poor condition. The company follows strict criteria for the type of houses they will purchase.
It is ideal for sellers whose homes do not demand major repairs.
The company levies 5% and deducts repairs and closing costs, which can be estimated at 1% of the purchase price.
In this market who needs the low-ballers