I Buy Houses Reviews
Have you thought of selling your house fast as is? Are you looking for a cash offer for your property? If so, you have probably noticed all of the “I Buy Houses” advertisements. Whether in TV, billboards, mailed postcards or on the internet you have seen the ads. Fast Cash Offer, We Buy Fixers, pretty houses or even ugly houses.
Who Buys Houses?
Who is buying all these houses and how does this work? Generally speaking the house buying industry is a pretty fragmented industry. There are a few larger companies but most of the buyers operate in one or two cities and purchase a small number of homes. They can be handymen, small construction companies or real estate investors. The business model is to buy the home at a discount, then fix up the home to updated standards. Then they will either keep the home as a rental property, or sell the home on the MLS to an end user ( a homeowner that will live in the home).
How Much Will They Pay For My House?
They are usually investors and not end users of the house. They will be purchasing the home with the intent to make a profit. So they have to purchase the home at a discount.
If you want absolute top dollar for your home they your should list your house on the MLS. There are several cons to using the MLS The realtor and closing fees can be 7 to 10 %. Time to closing can be 2 to 6 months or longer. Numerous people will be walking through the house. Escrow can fall apart for various reasons. Also, you will usually need to spend some money to improve the condition of the house. Often buyers in escrow will ask for a reduction in price for repairs or deficiencies.
If however time and certainty of closing are a priority then it may be in your interest to accept a cash offer. This could apply to people dealing with an inherited property, divorce, moving, tired landlords or owners, the home can’t sell, foreclosure, house rich cash poor or other reasons.
The amount of the discount that they offer will vary based on several factors. Consider the location and condition of the property, the neighborhood real estate market. Average days on market it takes a property to sell. Repair costs to get your home to a like new or rentable status. Also factor in the investors time and profit to take on the project.
Know Your Sale Price
Before your start negotiations you should have an idea of how much you want to sell your house. Find out the amount of your mortgage if you owe one. Determine any other liens against the property. Think about what you will do with the money after the sale.
Is It A Scam?
Generally these are reputable companies that are providing a service. They help homeowners get out of their house and get cash quickly, and in exchange they make a fair profit in the process. Real estate is a very illiquid investment with amazingly high transaction costs and commissions. These home investors help make real estate more liquid.
Always use a title or escrow company to control the funding and title recording issues. Consider contacting a lawyer if you have more questions.
We just want to give a shout out to friends, associates, acquaintance and the clients we’ve met over the years:
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