You’ve seen the signs posted on the streets that say, “We Buys Houses for Cash,” and you’ve likely seen the commercials on television claiming that there are investors in your area willing to buy your house as-is. But is this too good to be true? Are there really home buyers that will buy your house as-is for cash.
The simple answer to that question is YES. There are home buyers (usually real estate investors) who actively look for homes to buy. Unfortunately, for every legitimate we buy houses company you encounter, you’ll find twice as many inexperienced investors that you should absolutely avoid. Here’s how to identify a legit home buyer:
Understand Their Objective
Home buyers interested in buying your house as-is are real estate investors, meaning that they are willing to purchase your home for cash because they plan on making a profit from their purchase. If someone is making you a cash offer on your home, make sure that the buyer actually requests to see the home. A true investor will want to walk through the home to ensure that there are no big surprises after he hands you the cash.
If you call an investor that claims he’ll purchase your home as-is, but he doesn’t request to see the home, beware. Don’t ever send money or personal information (such as bank account numbers and your social security number) to a home buyer that you’ve never met.
Once an as-is home buyer purchases your home, he’ll likely “flip” and resell it for a profit or turn it into a rental property. No home buyer with the intent to invest their hard earned money will give you cash without assessing the risks of his purchase. He’ll want to ensure that he can affordably flip your home and still make a profit.
It’s important to realize that many as-is home buyers are skilled investors. This means that they know how to make upgrades very affordable. In fact, many home buyers have their own team of “flippers” in place. In other words, you shouldn’t shy away from the ideas of selling your home as-is if major repairs are needed, especially if those repairs include cosmetic work like carpet, paint, blinds, and even drywall work.
Look for These 4 Promises
As you research home buyers, ensure that the buyer you choose guarantees the following:
No Repairs. When a home buyer is seeking to purchase your home as-is, then you shouldn’t need to make any repairs. Be sure that the home buyer is clear that his offer includes no repairs to the property as a contingency of the purchase.
No Fees. Part of the appeal of selling your home as-is includes the luxury of not paying any fees. If the home buyer is asking you to pay any fees (especially upfront), then look for a new buyer. Cash purchases are typically done without any fees to the seller.
No Commissions. Cash investors typically don’t work with realtors. If you are selling your home as-is, chances are that you don’t have a realtor working on your behalf. If this is the case, then it’s important that you don’t get stuck with a “we buy houses” scheme that sticks you with high commissions. Even if the home buyer is a realtor, you should not have to pay him a commission on the sale.
Fast Cash Offer. Most home buyers work fast, typically in 5-7 days. This is because there isn’t a long waiting period for mortgage escrows, inspections, and paperwork. The home buyer will typically draw up the paperwork and pay you cash. He won’t have to wait for bank approval to get the process started.
If you’re looking for a trustworthy home buyer in your area to purchase your house as-is, contact the home buyers at 1-800-BUY-KWIK. We have experienced real estate investors looking to purchase homes all over the United States. Learn more about how our process works here.