Homeowners sell their property for a variety of reasons, including relocating for a job, avoiding foreclosure, or moving an aging parent to a nursing care facility. They also want to sell quickly for the most money possible and avoid paying a real estate commission to a broker. But, the real estate industry isn’t always fair and some We buy houses companies may take advantage of home sellers.
As with all investments, there are pros and cons to selling your house to a We Buy Houses company. The most obvious reason is that you get to close the sale on an accelerated timeline. Typically, this means within a few weeks or even less than a month. You also don’t have to deal with contingencies like an appraisal that is lower than the offer or a buyer’s existing home sale that hasn’t closed yet.
In addition, a We Buy Houses company can pay for your closing costs and give you a full cash offer upfront. However, this is not a guarantee that you will sell your home for the highest price possible. As a business model, these companies are designed to flip houses for a profit and they will likely purchase your home at a discount to the market value.
When you reach out to a We Buy Houses company, the representative will schedule an in-person visit and assess your home. Once this is done, you will receive a non-binding cash offer. The homebuying company claims it can often make you an offer in 24 to 48 hours.
Some of these companies are national chains while others are local, privately owned companies. They will usually have a website and phone number for homeowners to contact. Once they have a good understanding of your home, the representative will determine the current value of your house based on its condition and location. This process takes into account the home’s current condition, comparable homes in your area, and the amount of work required to fix it up.
Many of these companies also have hidden fees that will reduce the final sales price. For example, some of these companies will offer an attractive price for your home then tack on fees like program fees and closing costs. These fees can add up to a significant amount of money that you will not see in your pocket after the sale.
Some of these companies have no legal obligation to offer you a fair price or look out for your best interests. Additionally, these companies do not need to be licensed and they aren’t held to the same code of ethics as a licensed real estate agent.