Are 'We Buy Houses' Companies Legit? Pros And Cons.
Sure, you are not into the art of negotiating and marketing! Or you want to sell your house quickly? You are considering going for a 'we buy houses' company, but reluctant due to a lot of propaganda about these companies' legitimacy. We cannot say with accuracy that all such companies are scamming people, or all of these are legitimate.
The process followed by the companies is legit. But before you actually get into the deal with such buyers, you must know the downsides and upsides to make an informed decision. It has been observed that mostly those buyers go for the 'we buy houses' companies who want to make a fast sale or do not have the market knowledge and want a hassle-free sale.
Let's find out the pros and cons of these companies before we give an opinion about legitimacy.
Upsides Of 'We Buy Houses'
Here are the upsides of 'we buy houses.'
Simple And Easy
These companies will make the process of selling your house straightforward and easy. Such companies ensure to take all the responsibility of closing documents and legal requirements. Although the companies offer a lower price, you can take off the burden of selling your house by compromising a few thousands of dollars.
However, this option is more appealing when your house requires many repairs and fixtures before it can be listed with a real estate agent. You can sell your property without spending extra dollars on its wear and tear.
You Don't Have To Tire Yourself In Looking For A Real Estate Agent.
Finding a trustworthy and competent real estate agent is one journey in itself. Listing your house for sale and selling is another journey. With the option of these 'we buy houses' buyers, you are just a call away from the potential buyers of your property. You can save yourself from the hassle of interviewing many agents for getting the one you can go along with.
You Don't Have To Waste Time In FSBO
When you attempt to sell your house by yourself, it requires a whole skillset to execute it. From staging to storage space, marketing efforts to photography, closing documents, and legal requirements, you have to manage everything on your own. It can be a tiring and exhausting experience to venture into FSBO. By using the option of 'we buy houses,' you can take off all the worries of photographing your house with perfect angles, pitching your offer to every prospect, house showings, and closing documents.
'We Buy Houses' Companies Will Buy Your House In Any Condition.
As mentioned earlier, by contacting a 'we buy houses' buyer, you can save yourself from spending time and money on repair and staging of your house. Most of the time, these buyers will purchase your houses as it is.
Only You Have To Make A Decision
No matter how low a price is offered by the buyer or what terms are intended, the final decision is yours. It is only you who will decide to sell your house or not.
Downsides Of Selling To 'We Buy Houses'
Everything has pros and cons, and currently, we are talking about something that is more popular for its cons than pros.
A Lower Price Of Your Property
The biggest reason why 'we buy houses' companies are criticized is that they will offer only 50 to 70 percent of a house's market value. There is no conflict of interest between the real estate agent and the seller of the home. The higher the price of the house, the higher the commission.
But, in the real estate investors like these cash buyers, they have only one incentive that is to make a profit. This conflict of interest will always leave you at the lower end by receiving a fairly low value than your property's market value.
You Cannot Upgrade Your House To Get A Better Price
The flipper companies will state that they will buy your house as it is. But, a real estate agent will always guide you about ways you can improve your property to get a higher price. Why do the flipper companies don't mention to upgrade? Because they are planning to do exactly the same with your property. Buy it at a lower price, remodel or renovate, and sell for a high profit. Once dealing with the 'we buy houses' companies, you have no option to improve the house's shape.
You Will Lose All Control
If you have ever noticed, these flipping companies market the benefit of selling your property fast. Their target customers are the desperate sellers in dire need of selling the house. And if you are not that one type, you should not compromise your control over the pricing, improvement, and selling of your property by contracting these 'we buy houses' companies.
Are 'We Buy Houses' Companies Legit?
Many house flippers and buy-and-hold companies are accused of scamming the public, but it is not the fact. Most of the 'we buy houses' companies are legit, and they follow the procedures. Why is the narrative common about these companies?
By falling to the bigger words of 'sell your house fast without any hassle,' the sellers do not focus on their instinct and research. For instance, I sold a house to a house flipper for $120000, and after a month, I found that house listed at $200000. Now, running to the state attorney and shouting about the scam of the house flipper is useless. I was the one who didn't bother to have due diligence of the process and do research before the contract of sale.
However, there are real scam 'we buy houses' companies too. To beware of these companies, you should do all the research and ask the questions to make sure that you are not going to cry over spilled milk. To contract with a reputable, we buy houses company you must do a strict scrutiny of the available options in the market.