Pros and Cons of Selling a House to a We Buy Houses For Cash Companies

Have you been thinking about moving out of your home lately, but you don’t have the budget to sell your house the traditional way? To avoid all the steps required in a traditional real estate transaction and to get the money you need faster, you may want to consider selling your house to a cash home buyer. But before you decide to work with such a company, here are some advantages and disadvantages of working with one. 

What is a Cash Home Buying Company?

You may have seen their bright yellow signs scattered throughout your neighborhood or another local neighborhood. These signs may typically read “We buy ugly houses,” along with a number you can call. The signage usually isn’t particularly dazzling. So it may have you wondering if such a company is legit. In some cases, you may be working with a legitimate home investor. But in other cases, this sign could lead you to a scam. As a homeowner, ensuring you are working with a reputable company is a good idea. Here is what to expect. 

Pros of Working With a Cash Buyer

Selling a house the traditional way isn’t the only option available. Working with a company to sell your home directly for cash is becoming the wave of the future. Here are some reasons why working with a cash buyer may make sense. 

No Changes Necessary

Suppose you recently inherited a home from a relative that lives in a completely different town than you do. It’s not in the best condition, and you don’t want to keep the house. So, what can you do? In a situation like this, or even one where you simply don’t have the money to renovate your home, selling your house to a cash buyer could be a good idea. This is because they purchase homes in an “as-is” condition. So, you won’t have to fix your home as you would in a traditional real estate transaction. 

Get Cash Offer Fast

Another advantage is that you will have access to cash quickly. Typically, such buyers will come to your home, assess its value, and offer you a cash deal on the spot. Upon accepting the cash offer, you can “close” on your house rather quickly. 

Close On Your Home Quickly

Closing in these transactions is much different than a traditional real estate transaction. In a traditional transaction, you may close between 30 and 60 days. With a cash home buyer, you may see your cash in a week or two, depending on the company you use. 

A Way to Avoid Foreclosure

Many cash home buyers started their businesses, helping homeowners with distressed homes and financial issues. This is still a core part of their business. So, if you are facing foreclosure, you may be able to work with a cash buyer to avoid it.

Cons of Working with a Cash Home Buyer

There are some great things about working with a home investment company. But there are also some not-so-great things about working with them. Here are a few disadvantages to consider. 

Improving the Property Won’t Improve Your Cash Offer

In a traditional home sale, you can fix your home up and get a better deal from a home buyer. This isn’t the case with a home investor. They will offer you the best deal based on your home in its current condition. So you won’t need to make improvements. 

There Could Be Hidden Fees

You may decide not to work with a real estate agent because you don’t want to pay a commission. However, working with a cash home buyer doesn’t mean you won’t have to pay the agent. In some cases, hidden fees range between 5 and 6%, which will be much like working with a commissioned real estate agent. 

You Could Become a Victim of a Scam

Unfortunately, this is one of the major drawbacks of working with a company that buys homes for cash. While some reputable companies offer cash for your home, some are scams. A sign that you may be working with a scam company is that they don’t put anything in writing. Additionally, the company could make you sign over your title to them before obtaining the money for your property. 

When working with a cash home-buying company, doing research and getting references is a good idea. While some have a fine reputation for helping you get cash for your home, a few aren’t legitimate. So, knowing what to look out for to get the best deal is a good idea.