What is a Home Cash Buyer?
Let’s face it, we’ve all seen online ads and billboards (and we’ve definitely seen that certain famous caveman) for real estate businesses offering to buy your home quickly and with cash. These types of companies, such as “We Buy Ugly Houses” and “HomeVestors”, specialize in purchasing properties directly from homeowners without hiring a real estate agent or listing on the market like in a traditional real estate sale. They typically offer to buy homes “as-is,” or in their current condition, which can be very appealing to homeowners whose properties might be in disrepair or who are facing financial hardship.
The main draw of cash home buyers is the ability to provide a transaction that is both fast and simple – even within just a few days! This service has its advantages, especially for those who need to sell homes quickly due to finances, inheritance, or just to avoid the whole traditional process. While cash home buyers may offer sellers a simplified transaction, it’s important for homeowners to research and truly understand the advantages and disadvantages of pursuing this route. Before you make your final decision on how to sell your home, take a look at some of the pros and cons of selling your home to as-is buyers.
Cash Home Buyer Pros
- Speed – Going through a quick cash home buyer is one of the quickest ways to sell property, especially if homeowners are facing financial challenges or the house is too far beyond repair. In many cases, a home can be sold within days. An assessor from the company will typically visit the property to determine the value. Within a couple of days, the homeowners are presented with a cash offer. If the seller accepts, the rest of the process happens quite swiftly.
- No repairs/work required – As explained above, “we buy houses” companies will buy property in as-is condition. That means the home will still sell, even if the furniture is left behind or even a total teardown! Not needing to worry about making fixes around the house can help save time and money when selling.
- Low Cost – Since this process isn’t like a traditional real estate sale, homeowners will not have a need to spend money hiring a real estate agent or an attorney. Additionally, it’s likely they will not need to pay closing costs, deed transfer tax, or any other hidden fees that arise in a typical transaction.
- No inspections or mortgage contingencies – When selling through a fast cash company, you will not need to have any home inspections, since the property will be purchased in its current condition. Furthermore, there isn’t any worry about mortgage contingencies on the other end of the deal, as cash home buyers already have the financial backing to complete the sale.
Cash Home Buyer Cons
- Settling for a lot less money – When a property is sold as-is, no repairs or updates are made to the home prior to the sale, therefore potentially resulting in the value being lower. Essentially, if the owner doesn’t contribute a lot of money towards the home’s maintenance, they won’t earn a lot back after the sale.
- Risk of being taken advantage of is increased – Unfortunately, there are some companies out there that maybe take advantage of the fact that homeowners don’t have an expert real estate agent advocating for the sale. Be sure to do thorough research and find an extremely trusted home buyer.
- No REALTOR ® guidance to help you through negotiations – Selling your home with a “we buy homes” company means not needing to hire a REALTOR ®. However, having a real estate agent advocate for you during the sale comes with advantages that are often overlooked. This includes but is not limited to marketing the listing, negotiating offers, and providing resources for legal matters.
How to Know if a “We Buy Houses” Company is Right for You?
Deciding whether to work with an as-is home buyer company comes with both positive and negative aspects. On one hand, these companies provide a quick and easy way to sell a house without fixing it up or spending a ton of money. This can be helpful if you’re looking to sell quickly and easily. However, you must also consider the downsides of pursuing this path. The convenience might mean you get less money for your house compared to selling it the regular way. There’s also a chance you could run into companies that aren’t trustworthy and might try to take advantage of you. To avoid this, you need to do your homework and be cautious.
Ultimately, the decision is left to each individual homeowner. For those who want to sell fast and are okay with settling for a low profit, this could be a great option to explore. To learn more, ask me about Lamacchia Realty’s Offer Now Program. On the other hand, if a seller’s priority is to gain the most money possible from the sale and work with the most trusted real estate professionals out there, you may want to explore doing a traditional sale. Feel free to talk with me and discuss the best options for you and your situation.