FAQs about companies that will buy home for cash We’ve already covered a lot of ground in our exploration of house buying companies and the real estate landscape teeming with cash buyers. However, you may still have some additional questions, which we aim to address below. 1. Is a homebuying company the right choice? Sometimes. In many cases, a lack of time, money, and expertise for making significant repairs are reasons why sellers work with a house buying company rather than listing. Others prefer to avoid repeated showings. However, a house buying company is often not the right choice if your primary selling goal is to maximize the sale price. 2. What are the main reasons for selling to a house buying company? How you choose to sell your home is always a personal decision, but here are a few scenarios that could make working with a house buying company seem more appealing. When you’ve got a very complicated situation, Holly says it might be preferable to sell to a house buying company that is better equipped to deal with intricate matters such as an estate sale or foreclosure. “In more complex situations, sometimes it’s the only way to go,” he remarks. 3. Which house buying site is best? Your home may be a better match for certain house buying companies than others. iBuyers are a sound option for those selling homes in good condition at a particular price point; rental investors are better suited for rentable properties in high-yield areas, and house flippers typically seek homes that are in disrepair. If you’re unsure where to start, consider requesting an offer through Simple Sale, which provides all-cash offers for a variety of property types in locations across the country. 4. What are the best alternatives to house buying companies? Selling to a house buying company isn’t the only route to a fast and easy transaction. A top-rated real estate agent can help you take the necessary steps to attract a quick offer while addressing any obstacles to settlement. A knowledgeable agent who understands your goals can guide you with pricing, marketing, and connections to local investors or qualified individual buyers who are eager to purchase a home like yours and close the deal fast. 5. Are house buying companies legit? Most We Buy Houses for Cash buyers are legit, and you can rest assured that this business model has been around for decades. However, it’s always a good idea to keep an eye out for scams or anything that just doesn’t seem right. Always thoroughly research companies ahead of time. Verify all professional licenses, get a referral if possible, and vet the company with online customer reviews. “It’s not easy to unwind a contract after you sign it,” says Holly, stressing the importance of taking extra precautions to ensure that you are dealing with a reputable firm. If the company doesn’t have the cash it promised to pay you or can’t close during the timeline you expected, it could take months to resolve disputes during which your house could linger on the market and potentially decline in value. Even if the company is on the up and up, Holly says to be on guard for wholesalers posing as cash buyers. They’ll pay even less for your home, and then will mark up the price when they quickly flip it to an actual house buying company that will renovate and sell the property. 6. How long does it take to sell a house for cash? House buying companies can typically close on homes in as few as seven days to a couple of weeks. But they usually can provide a longer closing interval to sellers who need more time to pack up and move. Sellers should keep in mind that factors like title issues, inheritance complications, and HOA rules can cause settlement delays, even when working with a company that buys houses for cash. 7. What closing costs does a cash buyer cover? It’s common for house buying companies to pick up all the closing expenses associated with a sale, including escrow and title costs. House buying companies are often willing to help cover a seller’s closing costs knowing that someone facing financial hardship doesn’t always have the funds to do so. 8. How much do house buying companies pay? Each house buying company may offer different amounts for homes depending on the types of properties they purchase and their business specifics. Many house buying companies follow the 70% rule, meaning they’ll offer 70% of your home’s “after repair value” (ARV), which takes into account deductions to make repairs and renovations. iBuyers tend to look for homes in better condition and frequently pay much closer to market value, typically in the 90% range and sometimes more. However, keep in mind that major iBuyers like Opendoor and Offerpad usually charge sizable fees for their services, often around 5%-6%. Final thoughts on companies that buy houses for cash Homes are on the market for a median of two weeks, according to the NAR’s 2023 Profile of Home Buyers and Sellers. While that means you may still get an offer quickly, sellers also need to consider an additional 43 days for mortgage processing and approval if they’re working with a financed buyer. Selling to a house buying company, by contrast, typically results in a much faster process with a lot less hassle, although you aren’t likely to get as much for your home. “You’re paying for convenience and fully aware that you’re not getting top dollar,” Holly notes. If you’re intrigued by the idea that a house buying company could offer to buy your home tomorrow but are a little skeptical about whether you’d be happy with the outcome, HomeLight can connect you with a top real estate agent in your area for further advice. Alternatively, get started with your home sale today by requesting a no-obligation cash offer through Simple Sale. Looking to Sell Fast? A Top Agent Can Help If you’re looking to sell fast, a top agent has the expertise in pricing, marketing, home prep, and negotiation to help make that happen, while helping clients earn more from their home sales than average agents. Writer Valerie Kalfrin contributed to this story. Header Image Source: (fizkes / Shutterstock)
