The Truth Behind “We Buy Houses for Cash” Signs
You’ve seen them around. Those bright colored signs with simple lettering that reads “We Buy Houses for Cash,” “I’ll buy your house for cash,” or “Uncle Tony Buys Ugly Houses for Cash!”
As hot as the real estate market has been over the past several years, signs like these are commonplace at busy intersections and even on interstate billboards. But what exactly are they offering? In other words, what happens when you pick up the phone and call the number on the sign?
In this article, we’ll explain who is behind these signs, what they’re looking for, and how you can make sure you only work with honest and fair cash home buyers.
What’s Up With “We Buy Houses for Cash” Signs?
While they come in all shapes, colors, sizes, and slogans, the “we buy houses for cash” signs all typically offer the same thing. If you pick up the phone and dial the number on the sign, you’ll find yourself in touch with a real estate investor who is looking to purchase properties for flipping, wholesaling, or turning into a rental property. And as you might guess, they want to purchase your home slightly below the standard market value to generate some profit.
Why would anyone sell a house below market value to someone they’ve never met before after seeing their sign at a busy intersection? It’s a valid question – but this concept isn’t as crazy as it seems.
While every real estate investor operates differently, most will gather some basic facts about the home, run online searches to check tax records, square footage, and location, and ask several qualifying questions. Then if it seems like something that they’re interested in, they may ask to see the home or give you a quick cash offer on the spot.
Though the offer will be less than what you could get if you listed it with an agent on the MLS, you have to understand that you’re saving money in other areas. That’s because cash buyers make offers with:
- No inspections or repair requests. Cash buyers make an offer for the home in its current condition. They won’t require any inspections or repair requests. This means you don’t have to worry about fixing anything before selling.
- No commissions. If you sell your home with agents involved, you’ll dole out 6 percent in commissions. That’s $18,000 on a $300,000 house. With a cash buyer, there are no agents involved. That means no expensive commissions.
- No closing costs. In most cases, the cash buyer will handle all of the closing costs and fees. This saves you thousands of dollars and helps you keep more of your hard-earned equity.
- No long waiting period. Whereas a traditional contract might take anywhere from 30-45 days to execute, cash buyers are usually able to close in just 7 to 14 days.
So, while you might be getting 10 to 20 percent less than if you fixed your house up and listed it on the MLS, you’re earning most of that money back by not having to fork over money for repairs, commissions, closing costs, and other expenses. When you account for the fact that you could potentially close in just a week or two, this option becomes even more attractive.
What to Expect When You Call
Not every person behind those “we buy houses for cash” signs has your best interests in mind. Some are simply out to make a quick buck. Others watched a couple of webinars last weekend and want to try their hand at real estate investing. Then, there are the full-time professionals who run ethical businesses buying houses for cash. Make sure you’re working with these latter individuals.
To increase your chances of working with a trustworthy individual, do your research. Call the investor and ask your own questions. Ask them for their full name, the name of their company, and their website. You can even ask for testimonials or referrals from homeowners they’ve worked with in the past.
It’s also important to read between the lines. When they ask you questions, are they trying to find the best outcome for you? Or are they just focused on squeezing every last penny out of the deal?
Sell Your House Fast for Cash
At Samuel Property Group, we take pride in running a transparent and ethical business working with South Carolina homeowners who want to sell their houses fast for cash.
Unlike most people in this industry, we take the time to ask you questions and figure out what’s best for you. That’s because you’re the priority – not your property. If that happens to be selling your house for cash, we’ll work together to come up with a fair exit strategy.
Want to sell your house fast? Contact us today and we’ll be in touch!