Many homeowners are rightfully asking the question, do we buy houses companies truly work?
The answer to that question is a resounding yes and no as the answer really depends on your definition of the words ‘work’ and ‘successful’. The statement that there are companies out there that buy houses is indeed factual and many homeowners in need of quick cash have dealt with them. The process is meant to be straightforward, easy, and you can allegedly receive cash in your pocket within a short amount of time. It sounds too good to be true, doesn’t it? Well, let’s take a look at what these companies are doing!
First and foremost, you’re going to be filling out an application form online if you’re looking to sell your home to a company. The company will then turn around and make an offer on your home, but the catch is, the offer you receive won’t really reflect the true market value. The aim of the company is to purchase your home for about 65 cents on the dollar or depending on the condition and the desirability of your home, the offer you receive may be even less. Most importantly, these investment companies are aiming for homes that are at or lower than the $125,000 price range as they’re the easiest to flip for a profit.
Offers May Be Equivalent To What You Owe
Not all companies make an offer based on the percentage of your home’s market value. In fact, quite a few of them make an offer that’s reflective of the amount you owe on the property. These companies are called “opportunity investors” because they use a seller’s equity standing to negotiate a price they find “fair”. If you owe $50,000 on the property, that may very well be the amount you’re offered. The real catch is you will still be responsible for the loan until it’s paid off.
Advantages Of Dealing With House Buying Company
Now that you know that there’s a disadvantage to dealing with these types of companies (due to price), it’s only fair to point out that some homeowners still find them valuable. For one, these companies pay cold hard cash and if you’re in dire need of funds, it may be the only way to tap into an asset you own.
Another reason you may wish to deal with an investment company is if you don’t have the funds to repair and renovate your home. We buy houses companies don’t really care about the condition of the home or if it needs repairs– their offer will reflect it. Lastly, these companies will pay closing costs and you can avoid hiring a real estate agent, waiting for a loan approval or paying a lawyer for paperwork.
Red Flags To Avoid
Not all house buying companies are completely honest, meaning, if you’re on the verge of foreclosure, they may stall until the last minute to make you a lower offer. Other companies may claim they need an “application fee” or processing fees in order to get back to you– avoid such companies at all costs!
As you can see, if you choose the right company to deal with, you can actually sell your home quickly for cash. However, you need to be willing to let your home go for less than its market value and deal with a reputable company.