You’ve likely heard about investors who pay cash for houses and wondered how the process works. Another question you may have had was if you could get a fair price from cash buyers. Wondering what your house is worth and if you’ll get a fair price is normal for house sellers. Let’s see how credible cash house buying companies are, and if they’re the right fit for your house selling needs.
Are We Buy Houses Companies Credible?
How do you know you can get a fair price from cash house buyers? And how do you know we buy houses companies are credible. Just like any industry, there are honest people and dishonest people. However, paying cash to house sellers is a legitimate business and buying and selling houses is a respectable profession. Every person selling a house won’t benefit from a traditional sale, that’s where a cash buyer can be beneficial. A cash buyer offers another way to sell your house. It’s just as legit as working through a financial institution, however, the process is shorter and paperwork easier. You can also check out several we buy houses for cash reviews to learn more about the legitimacy of companies that buy houses for cash.
Most cash buying companies are here to help you. If you’re facing foreclosure and need help paying off your city liens, cash buyers are here for you. They focus on buying your property as-is, which means you don’t have to put in the money for any repairs that your house might need. If you have a house that you can’t afford to repair, cash buyers will still buy your property. Other options to sell your house can include auctioning, waiting for it to be sold on the market, or selling it yourself. If you sell to a cash buying company, you skip all of that stress.
How Does We Buy Houses for Cash Work?
When you make the call to one of the companies that buy houses for cash, they will meet with you to gain a good understanding of your situation. They will do an informal inspection of your property and make a cash offer. You do not have to make any repairs, or clean up the property, it’s a cash, as-is offer. There’s no waiting for paperwork or for an application to be approved. Once you accept the offer, the cash buyer pays you in cash and takes care of the closing costs and paperwork. The process is much faster than traditional ways of selling a house or putting it on the market.
Will the offer be a fair price from cash house buyers?
If you are wondering if you’ll get a fair price from cash house buyers or not, the answer is yes. Cash home buyers are real estate investors. Their business goal is to invest the time and money necessary into renovating houses and then put them back on the market for a profit. They will take the time to answer all your questions, evaluate your house and assess what they feel need to be repaired or renovated, then offer you a fair, no-obligation cash offer. This will be a fair price based on what they feel the market value of your home will be once it is renovated and back on the market. Some of the primary benefits from this transaction include:
- Not having to deal with realtor so handle their commission
- Cash buyers cover closing costs for you
- You get cash. No delays from banks and no deals that end up falling through because of failed financing
- Cash buyers purchase “as is” so you don’t have to worry about making any repairs or even cleaning up
- Closing happens on your schedule
- For homeowners in a rush, it’s a smooth and easy process so you get your cash, close on the house and move on with your life
How is the fair price from cash buyers figured?
There are several factors that go into the fair price you will get from a cash buyer. Part of learning about getting a fair price from cash house buyers is learning how we buy houses for cash works. Reputable companies have been in business for quite some time and have it down to a pretty exact science. Before they will make you a cash offer, they will evaluate several factors when creating a fair offer including:
- The house’s present condition
- An approximation of how much it will cost to make the needed renovations and/or repairs
- How long it’s going to take the renovate or repair the house
- The going value of homes in the area
- The value of the house after the renovation
- The cost of putting the house back on the market (real estate commission)
- How much it’s going to cost to maintain the house until it is ready to sell again (insurance, taxes, loan payments, utilities, etc.)
The cash offer will be calculated by estimating the future value of the house minus these types of costs.
How do I know I’m getting a fair price from cash house buyers?
Now that you understand that cash house buyers are legit, and have an idea of how they calculate their cash offers the next question may be if you can know you are getting a fair price from cash house buyers. There are a few ways to know for sure if the offer is a good one or not.
- Check out prices for comparable property that sold nearby recently. Make sure to consider factors like the properties condition, location, traffic and the size of the house.
- Think about the “as-is” condition of the house. If you estimate the cost of repairs to be $45,000 then this is going to impact the cash offer you receive.
- Learn more about your cash buyer by asking how long they have been in business and about their experiences. You can also look at the investor’s website, their blog and any reviews consumers have left. If they have a lot of information available, they most likely have a good track record.
- Get multiple offers. Getting more than one offer may let you know if you are getting a good deal or not. You can eliminate a lot of doubt by getting two or three offers. And afterwards, you won’t have to wonder if you would have been able to get more cash if you had held out for another deal.
Sell Your House Without the Hassle
If you want to sell your house but can’t wait for it to be on the market, then a cash buyer is for you. You will get a fair price from cash buyers for your house, no problem. Can’t afford the repair costs? Thinking about auctioning your house? Foreclosure pending? The best and most fair offer you’ll get will come from a cash buying company.
At Sell My House to Smith LLC, we’ll make you a no obligations cash offer for your house in order to help you avoid feeling like you have to auction your house.
Have a question? Give us a call! We’re always ready to talk. No matter if you have questions about the house selling process, or want to get a quote for your house, we’re more than happy to help! Reach us at 719-629-7740, or send us a message on our website!