- We Buy Ugly Houses
- New Western Acquisitions
- Fast Made Offers
- Networth Realty
Companies that buy houses for cash are also known as opportunity investors because they take advantage of opportunities that arise when sellers need cash fast. While this may seem predatory, there are situations where it can make sense to sell to an opportunity investor. For example, let’s say that you’re deep underwater with your house and that you need to be able to sell your house fast. It happens, and when it does, it makes sense to work with a home buying group that has a sterling reputation. The cash for homes companies below have gained excellent clout and generally have positive customer reviews.
Perhaps one of the longest-running businesses to be established in this industry, We Buy Ugly Houses, has helped over 75,000 people get cash for their homes. Their payouts are pretty good, they have more than 20 years of experience, and their customer service is excellent. They buy houses without any questions asked—a big relief for people who are dealing with some heavy issues.
Though this once was a relative newbie to the field, this company’s popularity grew exponentially thanks to their transparent service and the way they conduct business. Decent payouts, a lightning-fast process, and honest estimates are what made them become the nationwide phenomenon they are now.
Are you completely and utterly in need of a quick closing? If so, you might want to check out internet-based iBuyHomes. This company is known for making fast offers and being able to close a house sale in as little as 36 hours. You can even pick your own close date!
Opendoor was the first iBuying company, starting operations in 2014, and has grown quickly, now buying over a billion dollars worth of homes each year. Like other iBuyers Opendoor is known for making instant cash offers which are often quite fair and competitive.
If you’re open to waiting for a week and change, then you might want to check out Fast Made Offers. This international company can close sales within nine days. In some situations, they can even offer up a same-day close. Since they’re global, you can also sell properties abroad through them.
Networth Realty isn’t just an opportunity investor group; it’s a full-service realty as well. So, if you aren’t sure whether you want to just have a quick sale or want to go through a realtor, Networth Realty can help you out either way. We strongly suggest it as a go-to.
The business model of most house-buying companies is simple. They buy houses for resale, flipping, or real estate investment purposes. As they are cash home buyers that can move quickly, sometimes even making instant offers, they try to offer less cash than what would typically be accepted on market value. While a traditional sale is in the best interests of most homeowners, there are some situations where it can make sense to sell to a company that buys houses for cash especially if you can get a fair offer.
Common reasons a home seller might consider a fast sale include:
- Homes being foreclosed upon
- Homeowners who are desperate to get fast cash for their house
- Homeowners who prefer the convenience of a quick sale
- Homes that are deemed unsellable by typical standards
- Sellers whose employers transferred them
- Abandoned or vacant homes
- Homes in poor condition from sellers who cannot make the necessary repairs
- Homes on probate/Inherited homes
- House flippers who failed or run into financial trouble
Typically, these companies look for people who are trying to sell fast. Because they’re paying cash, they’re able to make the home purchase process faster than ever, which makes them a solid choice for people who need to move and want a fast closing.
Some sellers also prefer the convenience that comes with a cash offer from a home buying company. After all, they won't have to worry about things like paying a real estate commission, open houses, staging, or making costly repairs.
While you typically won't get top dollar for your home, house buying companies serve a purpose, and there are times when they are better than going the traditional route and selling with a local real estate agent. You can expect the sale price to be 10-25% less than you would get on the open market, but you will get to save quite a bit on closing costs as you won't have to pay any brokerage commissions.
If you were hoping for a market price or need all the money that you can get, this option isn’t for you.
No Fees, No Commissions
If you are looking to sell your home, EPCs will typically point out the perks of selling your home to their company. The most common perk they’ll tell you is that you won’t have to pay any fees or commissions to get your house sold. Sounds attractive, right?
Well, yes and no. In most cases, hiring a real estate agent and getting your home listed will still net you a higher price—even when you take the commissions and fees into account. However, if your home is in great disrepair or is located in an area with very low demand, it may make sense to just sell to an EPC.
One of the first things that an EPC representative will ask you is if you owe money on your mortgage—and if so, how much you owe. Believe it or not, you can still sell your home to them. However, you probably won’t want to get the price they’re offering.
Upon hearing that you owe money, they usually will only offer the amount that you owe on your mortgage. They won’t offer more, no matter how nicely kept your home is. That’s the way it is with these things.
There are dozens of companies that buy companies for cash, and the process has become relatively streamlined. If you choose to give one of these companies a call, you should know what to expect. Here’s the scoop:
- You will reach out to them and ask about an offer: They will ask you questions about your house, the situation you’re in, and what you owe on it. This gives them a good estimate of what they could offer you.
- They will set up an appointment to come to your home: Most companies will do what they can to make sure that it works with your schedule.
- When they get to the appointment, they will take notes of your house’s quality, and give you an offer: Some companies might be open to giving you an estimate at your first appointment, while others will do it over the phone after the appointment is made.
- You might be able to haggle: Some companies are open to letting you make a counteroffer, but most won’t.
- If you decide to go through with the sale, the company will schedule a time for you to transfer the deed to the house: They will give you the paperwork and a check for your money. Upon signing, you’ll have the cash in your hand and will be able to move out of your home.
Tips for Getting Good Offers on Your Home
Even though you’re not dealing with the full realtor experience, it’s essential to exercise a little bit of caution when you’re working on selling your home. These three tips can make a world of difference when it comes to your outcome:
- Research every company that you approach: Scams can and do happen in this industry. The more due diligence you make, the better your results will be, and the less likely it is that you’ll be a victim.
- Look at alternatives first: Companies that buy houses should not be your go-to unless you absolutely can’t sell it any other way. Hiring a realtor might be a better option, as would working with an iBuyer platform.
- Approach at least three companies before you make a decision: You don’t want to agree to a lowball offer. To avoid getting a ridiculously low offer, the best thing you can do is to ask around and pick the best offer you get.
- Ask questions: This is not the same process as getting a realtor, so the terms of your sale will be different. Are you expected to move out before it’s done? Are you going to have to pay off your mortgage using your own money? These things matter and each company will have different policies. Asking questions is your best way to figure things out.
A lot of people assume that home buying companies are scams, or that they won't offer a fair price. But that's not always the case. For much of 2020 and 2021, Zillow Offers was a cash buyer that paid more than market value for homes. This eventually led to Zillow Offers being shuttered as the company incurred massive losses.
That's not to say that other companies will offer as much, and some people will regret selling too quickly. Most of the “horror stories” involving home buying companies are actually just stories of people who accepted a lowball offer or felt rushed. Some might also have felt pressured. Getting a lowball offer is not fun, but it’s just par the course when it comes to dealing with cash for homes companies- you have to expect an offer that is below the fair market value of your property. It likely won't be your best option unless you're in a bind and need to close very quickly.
When to Get Worried
However, there are some individuals that claim to buy houses for cash that aren’t legitimate. If you notice any of these signs in a company that you’ve called, choose a different company immediately:
- They refuse to name their company, won’t tell you the names of the representatives, or use a fake number: You should never do business with a company that won’t tell you who they are until you agree to book an appointment. They could be casing out your house!
- They discuss fees for your home sale: No honest company will try to charge you fees to sell your home at a discount. This is the true mark of a scam company.
- You can’t find any information about their company online: This is a glaring red flag and suggests that you’re not working with a real company at all.
- They refuse to offer any proof of funds: How are they going to buy your house if they don’t have the funds? It’s totally reasonable to ask for proof of their ability to afford things. Don’t take no for an answer here.
- You searched up the owner’s name or representative’s name, only to discover they don’t exist or that they’ve been in trouble with the law: This suggests that they could be dealing with a fraudulent company or with people who are trying to defraud you.
Every single home sales situation is different, so there’s no clear-cut answer to this question. It all depends on what you’re looking to accomplish, aside from selling the house. If you aren’t sure, ask yourself these questions:
- Is time more valuable than money? It takes, on average, 68 days to sell a house for a realtor. Can you wait that long? If so, opt for a realtor. You’ll get more money.
- Are you able to stand firm when you are not interested? Many companies are known for having aggressive tactics. If you are not good with saying no or are likely to be browbeaten into accepting less, you shouldn’t work with EPCs unless it’s absolutely necessary?
- Have you checked other alternatives? Realtors aside, you might also get a good turnout from renting your house out or trying an iBuyer platform. If you haven’t checked out alternatives to EPCs, do so before you sign on the dotted line.
If you were curious about all those we buy houses signs you’ve seen, you now know the scoop. Yes, they’re real businesses that buy up houses at any quality. Yes, they do let you sell your house fast—though it’s often at a gross discount. And yes, it could potentially be the right option for you.
However, this is a matter that depends on your unique situation. Working with an EPC is something that only is beneficial in very specific circumstances where time is more of an issue than money is. If you’re in need, EPCs can be there to help you as long as you do your due diligence.