It’s time to sell and you’re looking for companies that buy houses. Here’s how they compare to traditional selling methods.
When Donald told his friends and family that he was seriously thinking about selling his house to one of the companies that buys houses for cash they thought he was crazy.
His parents would have offered to loan him some money, but they only had their social security to live off of every month. His brother and sister-in-law had just moved to another town that offered better prospects for work, and his best friend from night school would have helped him out but he had already made other commitments of his own.
Donald had always done pretty well for himself, except that now things had gotten just a little bit tight and he knew that this time around his only option was going to be to sell his house for cash.
His wife pleaded with him to talk to a real estate agent, and he wanted to make her happy so of course that’s what he did.
Issues With Using A Real Estate Agent To Sell Your Home
The traditional way to sell your house is to:
- interview a few agents who specialize in your neighborhood
- look at the comps and net proceeds sheet that they give you
- listen to their presentation about how they’re going to market your house in a thousand different ways and get you top dollar when you sell
Having a real estate agent tell you that they’ll get you top market value for letting them sell your home sounds all well and good, until you realize exactly what the process of listing your home for sale with a real estate agent means.
First, you’ve got to get your house in showable condition, which means finally taking care of all those little nagging repairs that you’ve learned to live with.
The main problem with fixing things up is that it takes a lot of money. Things like painting, fixing the leaky kitchen faucet, stopping the toilet in the guest bathroom from running every time its flushed, all quickly add up to lots of cash.
Even if you do have the extra cash lying around to make all of these little fixes, there’s still the annoyance of having to put up with all of the things that your real estate agent wants you to do:
- Let total strangers walk into every corner of your house
- Negotiate and deal with endless counter offers until you finally give in
- Make even more repairs that the buyer found during their home inspection
- Contribute to the buyer’s closing costs when you don’t have the money to begin with
- Agree to paying an inflated real estate agent commission
After jumping through all of these hoops and thinking that you finally had your house sold for a decent price, you come to find out that thanks to the financing contingency clause in the purchase contract the buyer is backing out because they can’t get the loan they applied for over 60 days ago!
Sure, your real estate agent has good intentions, but she’s not the one that has to put up with all of this hassle. It’s you and your family that bears the brunt of it all.
Renting & Lease-Purchase Options
Besides going the traditional route of using a real estate agent to sell your house, the other two options are renting your house out, and selling it to a buyer using a lease-purchase program.
The obvious problem with renting your house to somebody else instead of selling it, is that this doesn’t give you the cash that you need today.
Plus, you end up being a landlord and having to put up with renters who will constantly complain and expect you to fix the exact same things for them that you can’t afford to fix for yourself.
Offering to sell your house to a buyer using a lease-purchase option is better than renting it out, but you’re still stuck with paying the mortgage and having to deal with a tenant who might end up not being able to buy your place after a lot of time has gone by.
Why Use Companies That Buy Houses
Many people today are in a financial bind due to no fault of their own.
Unexpected medical bills, losing a job or getting a reduction in hours are some common reasons why homeowners end up with less money than expected, and before you know it they’ve gotten behind on their payments and a foreclosure notice gets taped to their front door.
Frequently, owning a home starts out as the American Dream but ends up as the American Nightmare. Eventually home owners finally decide that there are better things to do with their money than pay the mortgage every month.
The typical home buyer will complain about things like the color of the carpet in the living room, the way the paint looks in the master bedroom, the dated look of the plumbing fixtures in the bathroom, and how old the appliances in the kitchen are.
Companies that buy houses don’t care about any of that, because they’re professionals and they will buy your house fast, as-is, where-is, quickly and for a fair price in cash.
There are even times when people inherit a house from their parents and decide to sell to a company that buys homes, simply because they want to free up the cash for other uses and don’t want to spend the time dealing with a real estate agent.
The Ugly Truth
Home sellers know that almost all real estate agents will tell them they can make more money selling their home the traditional way by using an agent. But what else would you expect a real estate agent to say when they’ve got a big sales commission at stake?
But what else would you expect a real estate agent to say when they’ve got a big sales commission at stake?
When home owners sit down at the kitchen table at night and really crunch the numbers, more often than not they discover that after paying for needed repairs on their home, helping the buyer with their closing costs, and paying the real estate agent her fee, they end up with the same amount of money by selling directly to a home buying company.
Problems With Companies That Buy Houses
Unfortunately there are scam companies out there that give the good companies that buy houses a bad name. But that’s true of almost any business in today’s world.
There’s an excellent article in Realtor.com that covers the good, the bad, and even the ugly about selling your home to investors that’s worth checking out if you have the time.
Here are some common red flags to watch out for if a company approaches you and wants you to sell your home for cash:
- Charging an application fee or asking for money upfront before they will buy your home
- Dragging out the deal if you’re close to foreclosure in the hope of getting you to drop your price
- Offering to take over your mortgage payment and then not paying the lender, leaving you worse off than before
- Being vague or confusing about what their buying process is
How To Choose A Company That Buys Houses
Just because there are a few bad apples in the bunch doesn’t mean that every company that buys homes for cash is bad. In fact, it’s quite the opposite.
Here are five ways to choose the best company that buys houses:
1) When a company offers to buy your house for cash ask to see their proof of funds
2) An honest company that buys homes will have references and testimonials from previous home sellers that you can check
3) Ask the home buying company if they belong to a real estate association, and if they abide by the established professional code of ethics
4) Find out how long the company has been in business, how long the company has been buying homes, and learn about the credentials and qualifications of the owners
How it Turned out for Donald
After doing as much research as possible to learn all about how companies that buy houses work, Donald found one that he and his family could trust.
Even though his house was outdated and needed some repairs, the company made him a fair offer to buy his house for cash, as-is and where-is, with a fast close of escrow.
Donald ended up with the same amount of money by selling his home to a company that buys houses as he would have using a regular real estate agent, but without all of the hassle.
Now that he’s free from the burden of having to make an expensive mortgage payment every month, he’s able to take better care of his family, and his friends realize Donald wasn’t so crazy after all.
If you would like a company that buys houses to call you, you came to the right place. We have buyers around the country ready to help you. Simply click here to find a local buyer or fill out the form below.