It seems like everywhere you turn you see on the side of the road those “We Buy Houses” or “Sell Your House Fast” signs. The question is, is this the right way to sell your house?
Right off the bat, if you have ample time to sell your house and aren’t facing some dire situation, then no, you are much better off selling your house through an agent. Yes you will have to pay more in commissions, but on average a realtor will get you more money for your house as well as handle all of the headaches that come with selling a property.
However, there are situations where it does make sense to sell your house to one of these companies. If the house has major issues such as foundation, then these companies are a great alternative.
So lets look at some of the pros and cons of selling your house to a we buy houses company.
1: It’s easy. You don’t have to go through the trouble of finding a good realtor that will actually work to sell your house
2: You don’t have to clean your house from top to bottom. No worrying about dirty dishes in the sink for a surprise visit from an interested buyer.
3: Generally these companies pay with cash which allows them to close fast. Some companies claim to be able to close in as little as just 1 week. Forbes has more on this –
Flexible Payment Options – Investors may offer various payment methods such as certified funds, cash, pre-scheduled cash payments, or perhaps they may even take over the existing mortgage completely. With multiple options available, sellers may find a solution that suits their needs.
Cash Offers – Quite often investors are willing to pay cash for a home and with the recent tightening of financial restrictions, coupled with the growing number of complaints about low appraisals, having a cash buyer has become even more appealing.
4: You don’t have to worry about making any kind of repairs. If your house needs a new roof or the AC is out, these companies love houses like these.
1: Selling price! This is huge. We touched on this a little already, but if you can make the repairs to your house yourself, or hire a contractor to do them for you – do it! You will almost always get more money for your house selling it to a retail buyer through an agent. This is what Max Real Estate Exposure has to say about it:
When you hire a real estate agent, he or she is working to make you as much money as possible from your sale. The Realtor takes a percentage of the sale price as financial compensation, so he or she is motivated to fetch the best price. If a real estate agent believes that he or she can sell your home, there is a good chance that you can make more than you would if you sell to a house flipping company. In fact, I will go out on a limb as say you are GUARANTEED to get far more money when you list your home with a real estate agent. Selling to a real estate investor will almost always end up netting you less money!
2: Scams. You have to be very careful who you are dealing with. There are a lot of unscrupulous people out there that will try and take you. Before you decide to deal with a company be sure and check them on the web for reviews, and that they are a legitimate company. More on this from Big State Home Buyers:
To avoid scam artists posing as investors, get the name of the investor and do research online to see who they are. Ask for references and look them up with the Better Business Bureau. While this is a start, there is actually a lot you can do yourself to make sure you are working with a credible and reliable company.
All in all, there are certain situations where it makes sense to sell your house to a “we buy houses” company. However, for the majority of sellers, selling your house through an agent makes more sense. If your situation requires the use of one of these companies, just be sure and do some research on the company before signing on the dotted line.
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