How do you sell a house quickly? Hiring a real estate agent and putting the house on the market, while may be a way to get the best price, is not a very fast (or guaranteed) way to sell a house. In a seller’s market where houses sell quickly, the average time it takes to sell a house the US is 55-70 days.
In some areas houses sell more quickly. For example, In Raleigh, NC the average time to sell is 9-10 days. But in reality you never know how long it will sit on the market before an interested buyer makes an offer. Once you get an offer, closing can take about 30-45 days.
But listing, showing and contracts are just a few of the things involved in selling a house. The other part is getting your home ready to be on the market, especially if you are looking at top dollar. Most houses need cleaning, staging and sometimes remodeling or significant repairs. They also go through inspections, appraisals and usually some negotiations depending on what the buyer wants.
For these reasons and more, many property owners look to the “we buy houses” companies to sell quickly and without hassle. “We buy houses” and “We buy ugly houses” are real estate investment companies who will purchase your house no matter the condition or situation.
No matter the market, real estate investment companies can close on a house sale in as little as 7-12 days. But are all real estate investors trustworthy? Are they a legitimate option for homeowners, and how do you know which one to choose? Let’s take a look at how they function, what to look out for, and what questions to ask to help you decide:
- What is a “we buy houses” company?
- Not all house buying companies are created equal
- How Does the “We Buy Houses” Process Work?
- Pros and Cons of Selling to a Cash Investor
- Are “We Buy Houses” Companies Scams?
- When Does It Make Sense to Sell for a Cash Offer?
- Sell your house fast in Roanoke
What Is a “We Buy Houses” Company?
The most well known of the cash investment companies is a franchise called “We Buy Houses”. These are independently owned and operated businesses and are most likely not related to each other. The “We buy houses Roanoke” is under different ownership than “We buy houses Raleigh” for example.
But “We Buy Houses” is just a recognizable brand name, it is not the only cash investment company – not by a long shot. We Buy Ugly Houses, JP Homebuyers… and the guy with the sign on the side of the road that has a handwritten phone number on it… yup, that’s a cash buyer, too.
Cash investors purchase houses in any condition and fix them up. Once the work is done, they’ll turn around and sell it for a profit, or rent it out to create a revenue stream. These companies pay in cash, offering a much faster sale with almost no chance of the sale falling through.
By selling to cash buyers, you don’t have to pay the typical 6% commission to a real estate agent. Plus, many of them will cover the rest of the closing costs. Some companies charge fees, others don’t. Always be aware of what you’ll actually be receiving when the dust settles.
Not all house buying companies are created equal
Unfortunately, not all cash buyers operate at the same level, which is why it is highly recommended that you do your research on who is reputable and who is not. For example, they should be able to offer proof of funds, will have a preferred title company that can give them a good reference, and will be able to answer all of your questions fully with transparency and honesty.
How Does the “We Buy Houses” Process Work?
Many real estate investment companies make it as simple as possible for homeowners to sell their properties. First, they will make an appointment with the homeowner to evaluate the property value. They will look at a number of factors including the age, condition, any bad debts against it, and the cost of any needed repairs. The location and current market value will also play a part.
From there, they will make a cash offer. Many times an offer is made on the spot, and if accepted, the company will usually handle all of the paperwork and closing fees – the homeowner will just need to sign on the bottom line. In some cases the cash buyer will also be willing to work with the homeowner on the final closing and moving date, or any other factors that come into play – even tenants, cleaning and leaving unwanted belongings behind.
Pros and Cons of Selling to a Cash Investor
“We Buy Houses” companies and real estate investors offer several benefits that can really be invaluable to homeowners depending on their situation. The benefits of selling to a cash buyer can outweigh the benefits of using a real estate agent.
Advantages of selling to a cash buyer:
- Selling your house fast, typically between 7-30 days total
- Flexible closing so homeowners can choose their move out date
- Little to no risk about a faulty deal
- Zero (or minimal) out of pocket expenses
- No need to make repairs
- Convenient with almost no extra work except packing your things and moving out
However, as with anything, there may be a downside. Depending on the situation, a reputable and honest cash buyer is going to make a fair cash offer on your property – but that doesn’t mean it is going to be as much as it would be if you got a top dollar offer through the traditional listing process.
Disadvantages of selling to a cash buyer:
- Sale price may be lower
- Risky if you don’t know if your cash buyer is reputable
Are “We Buy Houses” Companies Scams?
Home buying investment companies like “we buy houses” and we here at Quick Fix Real Estate are absolutely not scams. We are legitimate, licensed and incorporated, and we do not scam people out of their houses, even if people are spreading those kinds of rumors.
It is possible that some We Buy Houses companies use aggressive and predatory tactics to buy homes from sellers in desperate conditions at rock-bottom prices. Some companies might use a bait-and-switch move by verbally agreeing to one thing but presenting a contract that says something else. Homeowners who fail to read this contract thoroughly can end up in a sticky situation or lose out on several thousand dollars.
However, as with any type of company, simply do your research first to find a reputable company. Legitimate property investors can save you a lot of time and hassle when selling a home while still getting a fair price for it.
Research the fair market value of your home and get a feel for the value of needed repairs. Plus, always read the contract thoroughly and watch out for red flags along the way.
When Does It Make Sense to Sell for a Cash Offer?
By selling a home through a realtor, you will virtually always earn more money than selling to a “We Buy Houses” company. After all, the investors will need to make a profit off the home. However, reputable companies will pay a fair price and the convenience is more than worth it for people in many cases where time is of the essence.
Here are a 4 examples of when it makes sense to sell your property for cash:
1. Selling a House in Divorce:
Divorced homeowners have enough to worry about without a long drawn-out house selling experience. A quick sale with a cash investor means they can each take their share of the profits and be on their merry way.
2. Selling an Inherited House
Although a lot of people think inheriting a home would be like hitting the jackpot, a lot of heirs who have actually been through it would argue otherwise; if the house is not in supreme condition, or if the heirs live far away it may become an enormous burden. In other cases when multiple people inherit a property, they may not agree on what to do with it and would just like the property liquidated so they can take their share.
3. Selling a House in Foreclosure
Homeowners facing foreclosure or bankruptcy can often benefit greatly from a quick sale – and in this case, time really is of the essence. In some cases this may be their last option, even if they have to take a little less on the sale. This is what the Department of Housing and Urban Development says about avoiding foreclosure: “Foreclosure doesn’t happen overnight.” While death, divorce, medical bills, and job loss are all common reasons for foreclosure — another big one is denial.”
4. Selling a house with a Short Sale
What about if a house is “upside down”? This means the home is currently worth less than the homeowner owes on their mortgage. A short sale happens when the lender agrees to forgive the rest of the loan in exchange for the entire profit from the sale. This process is already long and complicated and selling to a cash investor simplifies things and removes the danger of the sale falling through because the buyer couldn’t secure financing.
Sell Your House Fast in Roanoke
If you want to take advantage of the benefits of a quick, cash sale on your property – Quick Fix Real Estate is ready to help. We have a full list of testimonies and reviews available here. Plus, here are a few other frequently asked questions and info about the Quick Fix Real Estate process – how you can be home free in 3 easy steps.