It seems like everywhere you look lately you see them. Signs on every corner saying they want to buy your house, Posters on phone poles, billboards, and flyers left on your windshield, all saying that not only do they want to buy your house but that they will do it fast and easy and pay you in cash.
If you are thinking about selling your house, you have had to at least consider this option at some point, but what do you really know about these “Sign People”?
Here is some basic information, just so you know what you would be dealing with if you chose to go this route:
Who are the “Buy Your House Fast” People?
- These people are not buying your house to live in. In general these are people or companies that are investing in real estate. Buying your house is the first step in either adding it to their portfolio or selling it on to other investors to add to theirs.
- Some of them are not looking to actually buy your house at all. What they want to do is get a contract on your property for a one price and then sell that contract to a larger company for a profit. These are “Wholesalers”.
- Wholesalers can do a lot of the leg work when it comes to bringing together a home owner and an investor. They aren’t offering you less for your house, the larger companies are paying the wholesaler more for bringing them the deal
- Flippers want to buy your house at a discounted price and then put in their own money and sweat to rehab the property with the hopes of selling it to a new owner for a profit.
- Investors are constantly looking for properties to buy to add to a portfolio of properties they can rent to other families for a monthly cash flow.
- These Investors are ultimately also landlords and have built up resources to not only rehab the property but to maintain it as well as manage tenants. Things you may not be in a position to do yourself.
What are the “Cons” Of Selling My House For Cash?
- You will be selling at a discounted rate. Because these investors are looking to turn a profit with your property, you have to understand that they are looking to pay a bit less than what you may think the market value for your house is.
You have to do your homework. There are a lot of people in the “Buy Your House for Cash” business these days. Some of them are new and dont have good systems in place so they may stumble a bit with the process.
- Also, lets face it, there can be some less than reputable people that are just running
scams. Investors, unlike real estate brokers, Investors don’t need to have a license to operate.
- You should really deal with a person or company that has been in the business for long
enough to have developed a reputation of being fast, efficient, and fair.
What are the Advantages of Selling My House For Cash?
- It’s in the name. You can sell your house Fast for Cash. According to Elliemae.com the average home took an average of 44 days to close in 2020. An investor can usually close in as little as two weeks. In most cases you can even set the closing date yourself.
- Not only that but they are transparent and work with fast closing attorneys that make the whole process super easy.
- No repairs. Most investors will gladly buy your house in As-Is condition in order to get that all important discount. If you were to sell on the market you would be forced to invest more time and money into your house to fix it up before you can sell it.
- No Staging and showing. You won’t have to clean and stage your house, or be bothered by an endless parade of people coming through to see your house. Since an investor is looking to do the rehab anyway, they aren’t concerned with the decor or condition of the rugs when they look at your house. They can make you a cash offer quickly and be on their way.
- You save money. I know this is the opposite of what I was saying about selling your home at a discount.
There are, however, other costs associated with selling your house.
Like attorneys fees, closing costs, title insurance, and real estate agent commissions.
The good news is that most Sell for Cash businesses will take care of these fees themselves. It could put thousands of dollars back in your pocket.
When it comes time to sell your house you are going to have a lot of choices as to how you want to do it. If you have a large family home that you can afford to fix up then you might feel better about selling it on the market to another family that will live in it like you have over the years. You will get more offers on your home and ultimately a higher price
If you have a house that has become more of a burden over the years. Maybe it needs more money in repairs than you are willing to pay. Maybe it’s a house you inherited and just don’t want to deal with. This is when you can look into going the sale by owner route and selling to an investor.
Whichever route you choose, do a little homework to see who you are dealing with and then make your decision accordingly