Yes, companies that buy houses in exchange for cash is a real option for homeowners trying to sale their homes. Cash buyers for houses such as we buy houses are companies that will purchase any type of home or investment property. They offer an alternative to those who don’t want to go through a real estate agent or try to find a buyer themselves.
A Cash Buyer Has Many Definitions
It’s important to distinguish between a cash buyer and a company cash buyer. Both have money to immediately buy the property. However, a cash buyer is usually a person wanting to buy the property outright and keep it for themselves. A company cash buyer will want the house to make money. They generally look for distressed properties. These properties are hard to sell. For example, there is something “wrong” with the house such as the property being in bad shape, a foreclosure or back taxes.
A Company Paying Cash for Homes Won’t Require Commission or Fees
Real estate commissions are often part of a real estate agent’s fees. They receive a commission for locating a buyer and completing the sale. A company buying homes in exchange for cash usually doesn’t need to charge a commission or fees because the contract is completed in-house. This means they don’t hire an outside company to handle any part of the loan. They pay for their own titles and may skip paying title insurance. This makes the sale go faster than a conventional property sale.
The Amount of Paid for a House Depends on Many Factors
Generally, a company wanting to buy a house using cash will offer about 80 percent of the home’s market value. The equity could be discounted about 50 percent or more. They make take the title subject to an existing mortgage. This means they may take over the mortgage payments. However, the homeowner is still responsible for the payments until the loan is completely paid. That may not happen in every case or at all.
Some companies are interested in buying a house based on equity the person has in the house. They are called equity purchase companies. A homeowner interested in selling their home should determine if they want to accept an offer from a equity purchase company or not.
A home sale may go faster if the buyer doesn’t offer a lot of money for the home. That doesn’t mean the homeowner won’t receive a fair offer. The offer depends on the value of the home and whether there’s a mortgage.
Considering a Cash Buyer for a Home
A homeowner must consider all factors when determining if they are going to sell their home to a cash buyer. Some cash buyers quickly resale the home for a higher price to a conventional buyer. They also may rehab the house and resale it for a higher price. The homeowner must also determine their future options. If a foreclosure will cause the homeowner to lose their home, a cash buyer may be the best option.
