Companies That Buy Houses
When it’s time to sell a house, homeowners have several options available to them. They can work with real estate companies or iBuyers. Independent agents often buy and flip houses for cash. Real estate investors can typically be found online, and purchase homes for cash in a similar manner to iBuyers. This article will review the best companies that buy houses, and what you need to know about working with them.
Real Estate Companies
Real estate companies often buy homes. They then fix them and rent them out. Sometimes, these same real estate companies that buy houses will pay the expected sale price.
There are several great things about working with a real estate company when you want to sell your house. They are more likely to make adjustments for upgrades, such as new appliances and solar panels whereas iBuyers like OpenDoor rarely do. Real estate companies are also less known for overcharging for repairs.
However, there are a few downsides to working with real estate companies. Their real estate agents are likely to try to offer less than the sale price. They rarely cover closing costs, too. Instead, they are likely to do the bare minimum possible to save themselves some cash.
Real estate companies do not all follow a specific business model. How they work varies from company to company. To determine how they work, you’ll have to contact the company with a list of questions to determine exactly what their business model is, and how much you’ll wind up paying regarding repairs and closing costs.
Real Estate Investors
Real estate investors are not all large real estate companies. Instead, real estate investors are often real estate agents that have broken off to do their own thing. You’ll come across a person or family that buys homes for cash.
If you can find a real estate investor that buys homes for cash, this is a wonderful idea. Real estate investors often used to be real estate agents. Because of that, they will take several things into consideration. They are more likely to offer higher cash offers for upgrades, including solar panels and a finished basement.
Real estate investors often have their own personal business model that they use, but they tend to be more flexible than big companies that buy houses like Offerpad. Homeowners might be able to negotiate things like closing costs or repair costs. These investors often buy homes in a variety of markets, and they tend to be more flexible regarding their criteria for purchasing homes.
More than anything, one of the best things about these investors is that they are more personable. Many of them do offer cash offers, but they also want to help people, just like we do here at Cyber Homes. If we can’t help you, we’ll help you find someone that can.
Zillow Offers
This company is what is known as an iBuyer. They tend to buy homes from a variety of markets, offer a quick cash offer and advertise a quick closing. The ease of selling a home to an iBuyer like Zillow Offers is most of their appeal. However, although Zillow Offers is still listed on most sites, it should be noted that Zillow Offers announced they will no longer be buying homes. In 2021, Zillow Offers made the announcement that they will no longer be buying homes, and revealed plans to leave the iBuyer business for good. However, there are still plenty of other iBuyers available.
We Buy Ugly Houses
We Buy Ugly Houses was one of the first companies that buy houses on the market. They are best known for purchasing homes in poor condition, making them wonderful for homeowners that are facing hefty repair bills. They typically buy homes without asking a lot of questions, hence why so many people that are stuck with a home in poor condition love this company.
There are several great things about this company. They are well-known cash home buyers. According to reviews, We Buy Ugly Houses is a legitimate company. This company offers a fast closing time, with most homeowners able to close in a few short weeks. However, they are also flexible regarding closing times. Although homeowners may have to pay a little in service fees, homeowners will appreciate the fact that this company will pay normal closing costs.
It’s important to keep in mind the downside of working with this company as well. They will not offer close to a fair market value. The assumption is that the home needs quite a few repairs, so the company knows that they will have to invest quite a bit of money into homes before they are able to sell them. On occasion, they are known to offer less than half the value of a house according to fair market value.
I Buy Houses
IBuyHouses is quickly becoming well known in the real estate market. Their claim to fame is that they can close a sale in as little as three days, making them one of the fastest closers in the market.
However, IBuyHouses is not an iBuyer. Instead, this company specializes in connecting you to cash home buyers that are in their network. They do not charge service fees and have nothing to do with closing costs. That’s because they are not the company that will be buying your home. Instead, they are the middle man that connects you with an investor that might be interested in purchasing your home.
If you don’t know where to turn and want to sell a home in poor condition, or simply want to sell your home fast, this is a great place to start. They are connected to a plethora of companies that buy houses.
However, it’s important to note that no one vets the companies that buy houses to help homeowners avoid scams. While many of them are cash home buyers, homeowners are encouraged to do their own research to make sure that they don’t get scammed. This website can help make the process move along much faster.
OpenDoor
This was one of the first iBuyers on the market. They opened their doors in 2018 and quickly became known for being one of the cash home buyers on the market that offered a fast closing time.
These cash home buyers function as most iBuyers do. Homeowners can submit a request to the company. If the home meets the eligibility criteria, OpenDoor will offer them a sale price that is usually close to fair market value. Homeowners can then move forward with the offer or decline.
Homeowners that move forward with the offer will then undergo an inspection, the estimated cost of repairs will be deducted from the fair market value, and then homeowners can once again decline or sign a contract. They can choose a closing time that works for them, and begin the moving and closing process.
Pros Vs. Cons
Cash home buyers in the iBuyer category have several things that make them appealing. Most homeowners are attracted to the fact that these cash home buyers offer a fair market value in the beginning. They offer a quick close, and most companies like OpenDoor can take care of everything to make the process seamless.
Homeowners will appreciate the convenience of working with an iBuyer. They don’t have to work with potential buyers or deal with potential buyers that want to negotiate during the selling process. There is no concern as to whether a potential buyer’s financing will fall through, either. Homeowners will know how much they are paying in commission fees instead of having to deal with hidden fees from a real estate agent.
The downside is that a lot of homeowners won’t meet the criteria that OpenDoor has to purchase homes. (You can learn more about companies like OpenDoor and their criteria here.) Although they offer a fair market value, this isn’t how much cash homeowners walk away with. In fact, most homeowners will walk away with significantly less money due to repair costs. Homeowners also won’t receive additional money or credits for upgrades, such as stainless steel appliances, solar power or kitchen remodels. They also aren’t likely to want to purchase distressed properties.
When homeowners want to unload their homes, an iBuyer is a great choice. However, potential sellers are paying for the convenience that they get by not having to deal with a traditional sale. This is one of the biggest upsides to working with companies that buy houses.
Invitation Homes
Invitation Homes is a company that tends to focus on buying homes so that they can rent them. These potential buyers often help streamline the selling process, offer a preliminary cash offer, and often offer a fair purchase price. They are fond of purchasing more distressed properties that they can rehab to transform them into rental properties and multi-family homes that will make them a huge profit.
There are several good and bad things about Invitation Homes. This parent company has rental properties available, and buys homes, in various locations, including San Antonia, San Diego, and more. When it comes to selling them homes, there are quite a few positive reviews. This real estate broker is known for buying thousands of homes.
However, when it comes to being a landlord, they have quite a few shady reviews. Tenants complain about the company not fixing things, and some complaints have led to large lawsuits. The company was also sued for not paying property taxes or getting the proper permits.
Offerpad
Offerpad is another iBuyer that works in a similar manner to Opendoor and other companies that buy houses. A homeowner calls them and receives an offer for their home if their home meets the criteria for Offerpad to purchase their house. Then, an inspection will be conducted. After that, the cost of repairs will be deducted from the final cost and homeowners will have the option to continue the sale or decline. Then, they can close quickly.
Offerpad has quite a few positive reviews regarding purchasing homes. The process is simple and convenient. Homeowners appreciate that they do not have to worry about things that they would with a real estate agent, such as curb appeal. Instant buyers often offer assistance with mortgage approval, have rates that are less than the commission rates of real estate agents, and purchase homes in the most popular markets.
The major downside is that if you don’t own a home in a popular market, such as San Antonio, you’re less likely to be able to sell your home to an iBuyer. However, you can find out if your home meets qualifications with a quick online form. Companies that buy homes often have different qualifications.
The other major downside of working with an iBuyer is that there is a good chance you will walk away with less money than if you had sold your house to traditional buyers. These national companies use a quick algorithm to determine fair prices when making offers for houses. The quick offers for houses do not take several things into account that can increase the value of a home, such as location, amenities, or upgrades to the home. Some iBuyers are known for charging high rates for repairs to knock down the price they pay for a house too. This study offers a comprehensive look at companies that buy houses, their business model, and more you need to know.
While houses for cash companies are convenient, homeowners will pay for that convenience. It’s important to decide whether it’s worth it to lose money for a quick sale or wait and sell it traditionally to pocket more money.
Finally…
Here at Cyber Homes, we strive to work with you to sell your home. We’ll give you a cash offer if we’re interested in buying your home. We’re a family run business that will strive to work with you throughout the sale so you won’t feel like you’re getting ripped off. If we’re not interested in buying, we’ll refer you to someone else in our trusted network to make sure that you get the help that you need. Contact us today to learn more about selling your house for cash!
