Home Buying Companies – Are They Credible?
Home buying companies are one of the fastest-growing ways to sell your home. Rather than dealing with a real estate agent and placing the home on the MLS, the homeowner can sell directly to a professional cash home buying company who is ready to buy your home. When selling to these companies, you don’t have to do any repairs, move anything, or worry about cleaning your home. You can leave your home exactly how it is and the cash home buying company will buy your house in as-is condition.
If you need to sell your home fast, choosing a company that buys houses may be your best option. Not only can you sell your home in under 14 days, but you don’t have to spend thousands of dollars making repairs or the hassle of scheduling contractors and handymen. This saves you time and money.
Advantages Of Selling To A Company That Buys Houses
1. Simple and Stress-Free
If your home needs repairs, scheduling and paying for the materials and labor can be overwhelming. With a company that buys houses, you don’t have to worry about the stress of fixing your home up. They will buy your home in as-is condition, which means you can leave your home exactly how it is. This will free up your time to focus on other things, like finding a mover.
2. Flexible Financing Solutions
Maybe an all-cash offer doesn’t work for your financial needs. Some companies are able to work with you on finding a solution that fits your financial situation. They may be able to pay for your moving expenses or take over your existing mortgage. With the ability to structure different financial solutions, a cash home buying company is a great option.
3. Avoid The Traditional Home-Selling Process
Let’s face it, the traditional home-selling process is awful. Finding a reputable real estate agent is time-consuming and difficult. You may have to interview dozens of realtors before you find the right one. Even then, they may not be able to sell your home in a realistic timeframe.
Not only is finding a real estate agent challenging but showing your home is very inconvenient. Planning an outing to keep your kids busy and making sure you are out of the house long enough is a daily occurrence. Not to mention, keeping the house clean 7 days a week is difficult and time-consuming. When selling to a company that buys houses, you avoid the headaches of the traditional home-selling process.
4. Fast Closings
Since companies that buy houses pay with cash, they can skip traditional bank financing. Since they do not have to wait for banks to approve a loan, they can usually close as soon as the title work is finished on your home. This can up to two weeks assuming the title is clean. If there are liens or judgments against the property, this timeframe could take a little longer. This is still a fourth of what traditional financing with a bank takes, and much less risky. With bank financing, the process could take 60 days or longer depending on the bank.
Disadvantages Of Selling To A Company That Buys Houses
1. You May Not Get Full Market Value
There are plenty of costs associated with fixing the property up, and since you are selling to a company that buys houses, they will be taking on those expenses. Not only will the company be taking on the expenses, but they will also be taking on the risk associated with fixing up a home. There could be hidden issues that a home buyer will have to fix in order to resell your home. Since the company is taking on these costs and risks, they will want to make a profit for the hassle of fixing up a home.
2. There Are Some “One Man Shows” In The Industry
There are many companies that buy houses are legitimate businesses and give back to their community. On the other hand, there are some companies that are just posing to be cash home buying companies. These companies are usually a “one-man show” that actually do not have the cash to buy your home.
The best thing you can do is to look at a cash home buying company’s reviews and make sure that they are a real company. A real company will have ratings and reviews on Google, Facebook, and Yelp. A real company will also be accredited through the Better Business Bureau and have a long-standing history in your area.
How To Determine If Cash Home Buying Companies Are Legitimate
We’ll show you how to determine if a “company that buys houses” is the right decision for you and your family
If you’ve been driving around town, chances are you’ve seen some billboards or tacky yellow signs advertising companies that buy houses. Often times they say things like “We Buy Houses!” or “Cash For Your House”. While these signs may peak your interest, we find them tacky and disruptive to the neighborhood. A better way to contact a local “we buy houses” company is to start your search online.
A majority of we buy houses companies will not have any online reviews at all and that should help you narrow your search down. Also, be sure to read the negative reviews carefully. Real estate agents will frequently go to real estate investors websites and write reviews that say these companies only low ball and are unprofessional. This is simply not the case. The best thing to do is read the reviews from actual customers of the company (someone who has nothing to gain by writing a review).
By typing in “we buy houses companies + your city” in google, you can find all your local cash home buying companies and begin to read their reviews.
So how do you determine if these “Companies That Buy Houses” credible?
How do I know if the local house buying companies out there are honest and credible?
Well… sometimes they all look the same at the start… but below we’ll walk you through some things to look for in a local house buying company before you should work with them.
Buying and selling houses is a valid and respectable profession that can help communities and house sellers in many ways. But just like any other line of work – a minority of house buyers in any market are the ones who make the rest of us look bad.
There are people who are really great, ethical folks who improve their neighborhoods one property at a time.
And then there’s shady, dishonest people who put money ahead of the well being of their clients and who would sign the contract to sell their own grandmother with one hand while stabbing you in the back with the other – as long as they were making enough money.
Yes, they are out there.
We’ll help you avoid these “shady house buyers” so you can work with honest, ethical, and reputable local companies who can buy your house for a fair all cash offer and close on your schedule.
But let’s not focus on the negative – at least not yet.
First, let’s cover exactly what the best house-flippers are doing.
What Reputable House Buyers Are Doing
- Helping folks improve their lives by accessing the money they need right away. People often need the equity in their house to cover unexpected medical expenses, or to relocate to be close to a relative. We can make that happen in just a few days, and we deliver peace of mind.
- Helping sellers get rid of a burdensome property without the hassle of having to list it with a broker and wait months and months for a sale.
- Creating local jobs. We hire plumbers, contractors, electricians, brokers, title reps, loan officers, administrators, and many other folks along the way. The average real estate transaction involves 86 people from start to finish. Our investments help create real jobs for people.
- Buying US products. We spend tons of money on materials that are made right here in the USA – that creates jobs in our timber mills, factories, supply shops, distribution centers, and more. The US economy depends on steady improvement, and that requires investment from folks like us.
- Increasing the value of neighborhoods. When we improve a house, we’re helping to increase the value of the entire community. We often repair abandoned and neglected houses, turning them into beautiful homes for families. That activity strengthens Knoxville.
- Increasing the tax base. When a new buyer takes over one of our properties, they’ll pay a higher tax rate based on the new and improved value. Those taxes go to pay for our schools, fire, police, libraries, streets, and other valuable pieces of infrastructure. Again, improving our neighborhoods.
Pretty cool stuff, right?
Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly “reality” shows that amp up the drama because the reality of what we do on a daily basis is actually pretty boring.
Most of our work is coordinating with lots of people to make sure things are happening on time. We have to keep track of lots of moving parts.
So let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house buying scam.
How To Ensure You’re Working With A Reputable Local House Buyer
When beginning to research a potential cash homebuyer, visit their “about us” page. If the page is just a standard page without any pictures of the owner, this should be a big red flag. More than likely this could be someone very new to real estate, and should not be someone you trust to purchase your home. Also check the company’s social media pages. Are they posting about housing they’re buying? Are there photos of happy clients or testimonials? These should be some questions you ask yourself. We have also found some great open-ended questions to ask each company:
Ask open-ended questions like:
- How do you help your clients?
- What do you do for people?
- Can you tell me more about your services?
- What aspect of your business makes you the most proud?
- How would you describe your investment philosophy?
- How can I know that you’ll close on my house when you say you will?
Second, look for tell tale signs of tactics that those few shady operators tend to use.
- “Kitchen table closings” – If a property buyer tries to get you to sign the deed (ownership) of your house over to them at your house, rather than a professional place like a closing attorney or title company… be leery. Most reputable house buying services will perform the actual closing of the sale at a neutral 3rd party place… like a title company. This ensures everything is done right and on the up and up.
- Pressuring you into a fast closing – If a house buyer tries to pressure you into selling your house and says that you have to make the decision today, be leery. Most reputable house buying services will make you an offer and that offer will be on the table for at least 2-7 days (minimum) for you to make a decision. The reason reputable house buying services do place deadlines on our offers is because the market changes and values can change week to week depending on other sales in the area, also… we buy multiple houses a month and when we make you an offer we’re assuring you that the cash to purchase your house is ready and we’ll reserve that cash for several days so if you do want to sell your house, we can close on your schedule. If you feel the offer isn’t a fit for you, then we’ll assign those funds to help another seller with their home sale.
Most scammers are looking for a quick score, and not an in-depth interview.
Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.
True investors who run honest and ethical house buying services, however, are building long-term businesses based on relationships and community development.
So when you’re looking for “companies that buy houses near me“… never be afraid to ask questions! You can also consider selling your home by yourself if that’s the route you’d prefer.
Make The Best Decision For You
Whether or not you should sell to a company that buys houses is ultimately up to you. Make sure you work with a company that matches your schedule, financial situation, and comfort level.
If you’d like to get a fair cash offer on your house, we buy houses for cash in any condition or location. Contact us today to learn more about our cash home buying process.