Should you sell to a we buy houses company?
You’ve probably driven around your neighborhood and seen those “we buy houses” or “we buy ugly houses” signs. Those signs are set out by real estate investors that are trying to buy houses that wouldn’t normally sell on the MLS. Why would they be interested in buying your house? Well for one if they can purchase your house at the right price, they can usually take care of any needed repairs, update the home, and flip it like you’ve seen on those television shows. Many of these companies are legitimate businesses that will buy your house for cash if they can buy at the right price. Unfortunately these companies are not for everyone. They are there to help people out that are in bad situations and that need to get rid of their house quickly. People that may have recently inherited a home they don’t want, people facing foreclosure, or even someone that has a home that is in a state of disrepair can often benefit by selling their house to an investment company. Just because these companies fill a need for many sellers they aren’t ideal for everyone. If you are considering a company like this it’s in your best interest to do some research to understand all of your options.
Pro’s of selling to a “We Buy Houses” company
It’s fast and it’s easy
Speed has to be one of the biggest benefits of selling your home to an investor. selling a home can be a time-consuming process when you are trying to sell using conventional methods. If you plan on listing your home you’ll need to hire a real estate agent, get your home ready to sell, make it available for showings, fix issues after inspections, along with a host of many other possible things. Sometimes the traditional way of selling may take too long for your particular situation. Real estate investors can purchase a home fast and often can pay cash. They aren’t as particular about the appearance of a house as a regular home buyer. They aren’t going to worry about the landscaping or the paint color. Investors are most concerned with the price they can buy the house at. A reputable “We Buy Houses” company will offer you a fair price for your home that will end up being a “win-win” for you and them.
You are guaranteed of selling your house
One of the great things about selling to an investor is that it really does not matter what condition your Kansas City home is in. Your house could be ugly or it could be ready to fall over it really doesn’t matter to an investor. Investors go into these kinds of deals knowing that more than likely they are going to have to do a lot of work to the property before they can sell it or they can use it as a rental property. If your home is outdated or it has deteriorated over time and you still need to sell fast, selling to an investor is the way to go. Investors are in the business of buying old/ugly houses and know how to renovate them to meet today’s standards. Investors aren’t looking for the perfect home like a regular home buyer, they are looking for something that will end up being a great investment.
You don’t have to try for sale by owner Trying to sell on your own can be a difficult task Some owners try to do this to save on real estate commissions, but it takes a lot of time, effort, and skill to sell a home. In fact, most FSBO homes that do sell end up selling for much less than they would have if they had been listed with a real estate agent. By selling to an investor you can save yourself the hassle of having to deal with this trouble.
Con’s of selling to a Kansas City “We Buy Houses” or “We Buy Ugly Houses” company
You get less money for your home than if your were working with an agent One of the biggest drawbacks of selling your home to an investor is that you will get less money. Investors need to buy the house at 50-70% of the actual value of the house in order to make a profit. This is understandable because they will need to pay for all of the repairs and everything that goes into selling the home down the road. Ultimately then need room in order to make a profit. Real estate agents receive a commission when they sell your home, they are motivated to get it sold and get you the best deal possible. if you find an agent that believes they can sell your home regardless of the condition you have a chance of making more than if you had sold to an investor. Keep in mind that this process may take longer than selling directly to an investor for cash.
Some investors are only looking out for their best interests
Many of these companies that invest in real estate are in a unique position where they can help homeowners get out of a bind. They can help homeowners when they really have no options left. One of the ways that they can help owners is by paying cash for their homes. Unfortunately this could leave some homeowners on the short end of the stick. They could try to get you to accept less simply because they fell like you have no other choice. These types of investors are only looking out for one thing-the bottom line, they aren’t trying to create a win-win situation for both sides. That’s why it’s important to take the time you have available to do your due diligence and research your options.
There are obviously pro’s and con’s that come up when you work with companies that advertise that “We Buy Houses” or “We Buy Ugly Houses”. These types of companies can be invaluable in many situations including:
You are facing foreclosure
You are going through a divorce
You inherited a property
You can’t afford repairs
How do you know what to do or even who to choose?
1. Do your research
Before you decide to work with any we buy houses company that say they will buy your house fast and pay cash, spend time researching to make sure they are a legitimate company. DO NOT just go with a company whose sign you saw nailed to a light post. Look online for reviews from past customers. This will give you a good idea how legitimate they really are.
2. Speak to a Realtor
Selling to an investor may not be your only or even your best option. Speak to an experienced agent that understands how investors work. You want to speak to an agent that can explain the various options available to you based on your current situation. It doesn’t hurt to talk to someone and figure out what will be best for you in the end. At PSR Home Buyers we work with clients all the time and help them figure out the best option for their unique situation. If you have any questions please feel free to ask, I’d love to help!