What you should know about cash house-buying companies
Are cash buyers trustworthy?
Cash house buyers who have an online presence, reviews, and experience are more likely to be legitimate. You can avoid cash home-buyer scams by being cautious when you get an offer you didn’t ask for. Check out the company online to make sure they have experience buying houses and look for reviews from sellers who have worked with them.
The buyer should also take time to explain how their process works instead of rushing you to complete the sale. Always meet someone in person and make sure that you receive the money for the sale before you sign the deed.
How are they different from working with a real estate agent?
When you work with a real estate agent, they will guide you through the steps of selling a house on the traditional market. This will include making repairs, staging and listing the house, showing it to potential buyers, negotiating with the buyer, and closing the sale. These services will cost you a percentage of the home sale, historically 5%–6% of the final purchase price, including the buyer’s and seller’s agents.
Cash house buyers are different because you can skip nearly all of those steps and have a fast closing, and sometimes you won’t have to pay a commission. The trade-off is a lower sale price for your house than you would get on the traditional real estate market.
Why sell to a cash house buyer?
Selling your house for cash can be a great option if you have a house in disrepair and don’t want to spend time or upfront cash fixing all the issues with the home. When you choose to work with a cash house buyer, you can skip all those repairs and renovations, selling the house in “as is” condition in less time than it usually takes on the traditional market.
You may be dealing with a situation where you just want to sell quickly and move on, like if you’ve inherited a house or are relocating. If you’re downsizing for retirement, some cash home-buying companies will allow you to leave unwanted items behind in the house.
What types of companies buy houses for cash?
There are many kinds of companies and individuals that pay cash for houses. Below are brief explanations of each type, though some companies and individual home buyers can fit into multiple categories.
Franchise cash house buyers are made up of local home-buying businesses, independently owned by franchisees who are licensed to operate under the company’s name and guidelines.
iBuyers are online businesses that use technology to make quick offers on houses quickly.
Real estate investment firms trade in real estate to make a profit for their investors.
House flippers look for houses that need work so they can fix them and resell them for a profit.
Buy-and-hold house buyers purchase houses and hold onto them for an extended period of time, usually renting them out before sometimes selling them later on.
Trade-in buyers essentially swap houses with the home seller, “trading in” one house for another and syncing the closing dates for both homes.
Who buys houses for cash?
Below are several companies that pay cash for houses or work with companies that buy houses for cash:
- Fast Home Offer – buys houses for cash in the US, Canada, Australia, and Mexico
- Homedy – cash house-buying company
- HomeLight – a software platform for buyers, sellers, real estate agents, and lenders; also facilitates trade-in sales
- House Buyer Network – cash house-buying company
- Instantcashoffer.us – iBuyer
- Offer Giants – iBuyer
- Offerpad – iBuyer where homeowners can sell their house for cash or list it, and home buyers can browse available houses
- Opendoor – iBuyer that allows homeowners to accept a cash offer or list their house, and home buyers can see houses listed for sale
- Orchard – specializes in trade-in sales
- Realtor.com – lead generation company that lets homeowners list their houses for sale FSBO (for sale by owner) or find an agent, while home buyers can look through listings
- We Buy Homes 365 – cash house-buying company
- Webuyhouse.com – cash house-buying company that can also set homeowners up with an agent
- We Buy Ugly Houses® – cash house-buying franchise business
- Zillow – lead generation company that allows homeowners to list their houses for sale FSBO or find an agent; homeowners can also look at listings of houses in their area
What to expect when selling your house for cash
- Home inspection. Some buyers will require a home inspection, while others won’t. If the inspection reveals a lot of problems with the house, the initial cash offer might be lowered.
- Disclosures. Different states have different requirements when it comes to which problems you need to tell the buyer about, and whether you need to prepare an official disclosure statement. Some buyers may want one, even if it’s not legally required, and it’s always a good idea to be upfront about any issues with the house.
- Paperwork. You’ll need a lot of paperwork to close on the house. Some of this includes a property survey showing the boundaries of the property, the deed that proves you own the house, a disclosure statement if required by law or the buyer, and a proof of sale document showing that the property has changed ownership.
- Closing process and timeline. Most cash house buyers can close quickly, often within weeks of making an offer. Some are better than others about working according to the seller’s timeline, though.
- Closing costs. Some cash buyers won’t help with closing costs, but others will pay for part or all of them.
- Lower offers. You won’t get top dollar for your house, but you’ll enjoy a fast, all-cash offer and a simple, quick closing.
Is a cash house buyer right for you?
If you need to sell your house fast or don’t want to do any repairs, then selling your house “as is” for cash could be the right choice for you. You may also want to avoid the commissions that you’ll have to pay when you work with a real estate agent to sell your house. Some cash house buyers even pay closing costs.
You can also deal with a lot less hassle than you would with house showings and lengthy negotiations with buyers. Since selling a house to a cash buyer can involve far fewer steps, you’ll be able to get your money faster and move on with your life.
We Buy Ugly Houses® buys houses off-market fast.
If you’re searching for a cash home buyer, chances are you want to sell without making repairs or updates. We make the process easier by purchasing houses "as is," so you can skip repairs. Plus, your home doesn’t need to meet the inspection standards of a traditional FHA or VA loan.
We Buy Ugly Houses® is different than other off-market house buyers because we have decades of experience working with home sellers all over the country. We’ve bought 150,000 houses since 1996, and our 95%* customer satisfaction rating shows that we do it well.
Our simple, 3-step process can take you quickly and easily from appointment to offer to closing. We start with an at-home, in-person consultation where we assess your house. Then, we can make an offer for it “as is.” You don’t need to bother with any repairs or renovations, you don’t have to clean the house, and we’ll take care of any items you want to leave behind.
If you accept our offer, we’ll do our best to close on your schedule, not ours. We also offer a 3-day option period—if you change your mind within 3 days of signing the contract, just contact your local buyer in writing to cancel the sale.
Check out our reviews to see what sellers have to say about their experiences working with us, and get in touch if you want to sell your house fast.
