If you’re considering selling your home, you may have come across “we buy houses” companies that offer to buy your property quickly and without the hassle of a traditional sale. Are we buy houses companies a scam? Should you sell them your house? In this article, we’ll explore what “we buy houses” companies are, how they work, and whether or not you should sell your house to them.
What Are “We Buy Houses” Companies?
“We buy houses” companies, also known as real estate investors or cash home buyers, purchase properties directly from homeowners, typically for cash and without needing a real estate agent or traditional sales process. These companies are typically looking for distressed properties, such as those needing repairs, facing foreclosure, or owned by someone who needs to sell quickly.
Can Anyone Be A Real Estate Investor?
The short answer is yes. Unlike realtors or agents, real estate investors aren’t subject to the exact legal requirements. This allows investors to be more creative with their home-buying solutions. An example includes helping take over existing mortgages and bringing cash offers to the table that realtors cannot always offer.
Often times, investors are savvy, experienced, and adept at helping local homeowners out of challenging financial situations. Whereas a realtor won’t touch a property if it has a leaking roof, cracked foundation, and missing gutters – a real estate investor will find a buyer willing to fix all of those issues and either sell the house or place tenants in it.
How Do We Buy Houses Companies Work?
When you contact a “we buy houses” company, they will typically ask for information about your property, such as its location, condition, and any repairs needed. Based on this information, they will make you an offer on your home, typically within 24-48 hours. If you accept the offer, the company will take care of all the paperwork and closing costs, and you’ll receive payment for your home in as little as a few days.
Here’s how the process works in more detail…
- Contact an Investor: The first step is to find a reputable real estate investor or company in your area. You can do this by searching online or asking for recommendations from friends and family.
- Schedule a Home Visit: Once you’ve found an investor, they will typically schedule a home visit to assess your property. During this visit, they will take a look at your home’s condition, any necessary repairs, and the local real estate market to determine a fair cash offer.
- Receive an Offer: Based on the home visit, the investor will make a cash offer for your property. This offer is typically lower than what you would get on the open market, but it provides a quick and guaranteed sale.
- Accept the Offer: If you’re satisfied, you can accept it and move forward with the sale. The investor will typically handle all of the paperwork and closing costs, making the process as smooth as possible.
- Close the Sale: Once all of the paperwork is complete, you’ll receive payment for your home in cash. This can typically happen within a few days or weeks of accepting the offer.
Are We Buy Houses Companies Legit Or A Scam?
“We buy houses” companies are legitimate businesses that can provide a quick and easy solution for homeowners looking to sell their property. However, as with any industry, some companies are more reputable than others. It’s essential to do your research before choosing a company to work with. Look for reviews and testimonials from previous clients, and make sure the company has a physical office and a professional website.
Here are 4 easy ways to tell if the company is a fraud or legit
- Contact the company – do they pick up the phone or respond to your email?
- Ask for previous examples of houses they have purchased and what they did with them afterward.
- Look for Google, Facebook, or Yelp reviews for their business name – what do the other home sellers say?
- Look at the content on their website – do they seem credible, knowledgeable, and trustworthy?
Should You Sell Your House to a “We Buy Houses” Company?
Whether or not you should sell your house to a “we buy houses” company depends on your individual situation. If you need to sell quickly, are facing foreclosure, or have a distressed property that would be difficult to sell through traditional methods, selling to an investor could be a good option. However, if you have time to wait for a traditional sale, you may be able to get a higher price for your home by listing it with a real estate agent. Even if a real estate investor can’t get you the offer you are looking for – they likely partner with agents who can help list your property.
Statistics on Home Sales to Investors
According to data from ATTOM Data Solutions, in 2020, investors purchased over 231,000 homes in the United States, accounting for 6.4% of all home sales. This represents a slight increase from the previous year, when investors purchased 6.2% of all homes sold. While the majority of home sales still occur through traditional methods, the number of homes sold to investors each year demonstrates the demand for quick and easy home sales.
In conclusion, “we buy houses” companies can be a legitimate and helpful option for homeowners looking to sell their property quickly and without the hassle of a traditional sale. However, it’s important to do your research and choose a reputable company to work with. By weighing the pros and cons and considering your individual situation, you can make the best decision for your home-selling needs.