Will Buy Your House
Unlike flippers or other buy-low, sell-high investors, our business model is fee-based. We use recent, comparable home sales to make a competitive offer on your home. Then, if you decide to sell to us, we take a service charge out of the sale proceeds similar to how an agent takes a commission in a traditional sale. Every month we buy hundreds of homes helping homeowners across the country get to their next chapter.
will buy your house
When you sell a house for cash, it simply means that you sell to a buyer who can purchase the home outright without the use of a mortgage loan. If you agree to an offer of $350,000, your cash buyer will need to show proof that they have that $350,000 at the ready in a bank account or something equivalent.
Besides repair and staging costs, a cash offer can cut out additional closing costs. Many house-buying companies will cover closing costs in full for the seller, which can amount to 9%-10% of the sale price. (The largest cost is typically the agent commission at an average 5%-6% of the sale.)
These savings can act as a counterbalance to a lower offer price. A HomeLight study found that the average cost to sell a house to a traditional buyer is $31,308, so when weighing whether to sell for cash, you should always factor in the selling costs associated with each option.
In a sluggish real estate market, Holly says it could take as long as six months to sell a house. This can cause delays upward of half a year to get the equity out of a home while the owner continues to cover the costs of heating, cooling, mowing the lawn, etc.
Whether you want to move next week or stay put for a couple of months, a cash sale generally gives you plenty of wiggle room. Sellers who work with a house-buying company often select a move-out date that works best for them.
An iBuyer or instant buyer is a specific type of house-buying company that first emerged in the mid-2010s. iBuyers use automated valuation models (AVMs) to make competitive offers on homes that are typically in better condition. Examples include Opendoor and Offerpad.
In short, the answer is yes; there are many legitimate companies out there that purchase homes for cash, will provide you with a great experience, and are good on their word. However, we always recommend that you do your due diligence on any buyer before you provide sensitive information or sign a contract.
Abdel cautions sellers to be wary of scams in which house-buying companies promise a certain price, but then hit you with hidden fees that substantially slash your profit. Other steps to help ensure a company is legitimate include:
Without the risk of financing glitches delaying the sale or inspection issues prompting the buyer to renegotiate, selling your house to a cash buyer will get you to the closing table much faster and with fewer headaches. But unless you sell to a cash buyer who plans on living in the home, Abdel says you could be giving a discount of 10% to 15%. However, the fast sale may be exactly what you need.
The vast majority have been spawned by real estate gurus and reality TV shows on how to flip and wholesale houses. More recently, there have been larger companies who have been trying to get in the game of buying houses cheap and reselling them for more. Some are experienced, but many others may not have bought any homes yet. It is just really hard to tell online these days.
These websites, mailers, and handwritten signs proclaim they will provide you an instant cash offer for your home, enable you to sell your house for cash in just days, and avoid a lot of the costs and hassle of a traditional home sale.
The big promise is cash for your home and the ability to close within 7 to 14 days. Of course, this can change if you owe too much on your home and need to do a short sale or they offer you another method of paying you.
Like the many iBuyers out there today, including Zillow Offers, their goal is to flip your house for a profit. According to their own website, they often turn around and sell many of these homes for a profit without any repairs or upgrades being done. Sometimes they may simply assign the contract to another buyer.
Simply put, an iBuyer is a large real estate company who will buy your house for cash. They use a complex algorithm to determine the value of your home and then make you a cash offer. They will then make any repairs, if needed, and attempt to sell your home at a profit.
UpNest is owned by parent company Realtor.com. The platform is designed for getting connected to the very best and most reputable Realtors in your neighborhood. They have years of experience and great online reviews. These agents will compete to help you, by offering all the services you want in an agent, while offering great discounts and savings compared to traditional Realtor commissions.
At UpNest, home sellers save thousands of dollars on real estate commissions, while getting full-service help and being able to sell right to the market and those end buyers. All of those extra profits in the middle get to go into your pocket instead. That could be 38% of your home value or $60,0000 or more. Though obviously, if there are many repairs to be made, you might offer a reasonable discount.
Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible.
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In fact, many cash sales happen before a home is even listed for sale. For example, you might sell to a large real estate business or a house flipper that buys pre-list properties. This can save you much of the time and effort involved in a traditional sale.
How much a cash buyer pays for a home will vary based on the home, the market and more. However, you can usually expect to get less money from a cash sale than going through the traditional process of listing your home and getting competing offers from potential buyers. For some sellers, the faster and easier transaction is worth getting a slightly lower price.
But if the traditional route doesn't appeal to you or circumstances make it difficult, there are alternatives that allow you to still sell your home. In many cases, it involves selling your home to a company.
While they may all seem similar on the surface, there are many different types of companies that are interested in buying your home, often for cash and with a quick turnaround. We're breaking down the types of companies you may encounter and how they do business, as well as what you should factor in if you're considering selling your home to a company.
The companies that will buy your house from you are varied, and they have different methods of purchasing properties, as well as different motivations. Here are six types of companies that could buy your house:
"Our typical focus is buying houses that we either fix up and sell, or we keep as rental properties," says HomeVestors CEO David Hicks. He notes that, as the We Buy Ugly Houses name illustrates, the focus is on purchasing a home as-is and paying for it based on its current condition, especially if that means it needs some work.
Franchisee cash buyers will typically opt to work with local contractors to flip a property or to keep it for rental income. The franchisees will then either pay a regular fee or portion of profits to the larger company, depending on the company, for the brand affiliation and additional help as needed.
These companies, which operate in a growing number of markets across the U.S., purchase homes that need very little work to be ready for the market, with the goal of turning around and selling it quickly for a higher price. The amount paid to the home seller tends to be higher than a cash buyer would pay for houses that need more work, but an iBuyer is involved in more transactions total by operating as a single company located across many markets.
If you're familiar with shows on HGTV, you're probably familiar with the concept of flipping a house: Investors purchase a property that is outdated or run-down, and renovate the property to make it move-in ready, ultimately selling it for (hopefully) more than the cost to purchase and remodel the property.
House flippers commonly aim to flip a house within six months or a year to cut down on operating and holding expenses. While cash buyer franchisees may flip houses, there are also many independent local companies that likely have the ability to make a deal happen fast by offering cash to a homeowner.
Many individual homeowners with some contracting experience will flip houses as well, but their cash reserves to make a purchase and renovation without financing is something you're less likely to come across, unless they have investors backing them up.
Another type of investor you're likely to come across is one who will purchase your property and keep it to rent out to tenants. In many cases, the investor aims to buy a house that requires some work to avoid paying top-dollar, and will renovate before leasing it. 041b061a72