When you’re ready to sell your house, you’ll be faced with a number of options – including whether to list with an agent for a traditional sale, or whether to sell to a company that buys houses (usually with the intent to flip and re-sell.)
Below, we discuss the “pros” and “cons” of selling to companies who buy houses, so you can be on your way to handing over the keys.
Let’s take a look.
Pro #1: Simplicity
No need to spend time and money on a formal house sale listing, which requires clean-up, photos for online listings, and long discussions with a realtor about the home’s qualities.
In fact, you don’t need a realtor at all. This means no realtor commissions (typically 6%, split between listing agent and buyer’s agent.) There will also be no buyer “contingencies” or negotiations over things like closing costs, inspections, and repairs.
Pro #2: Save Time
Selling a home can take weeks, months, or – in the event of serious repairs or work needed – even years. When selling to a company that buys houses, sales can happen very quickly.
Even when your home does sell, the wait isn’t over: the closing period can take up to 60 days or more. And if your buyer’s financing falls through, you’re starting back at stage one.
Not so with house-buying companies: often closing periods are only a week or two, because they frequently pay cash.
Pro #3: Sell Your House in Any Condition
This is one of the biggest benefits to selling to one of the companies who buy houses: no matter the condition of the house, they’ll buy it “as-is.”
In fact, these companies often seek run-down houses because they know they’ll get a lower price. Which brings us to our list of “cons.”
Con #1: The Price
Here she is, folks: the biggest downside to selling a home to a company that buys houses. You’re almost guaranteed to get only 50-75% of the home’s actual value.
The reason for this is twofold.
First, you don’t have a listing agent working on your behalf, which means that an industry professional can’t help you sell the home at a fair price (even if your home does need a fair amount of work.)
Second, you’re paying for the convenience of a quick and easy house sale.
Con #2: No One is Working on Your Behalf
The fact that you’re working without a realtor means that no one can advocate for you. Real estate contracts can be complex, so when working with one of the companies who buy houses, there’s quite a bit you need to figure out and work through on your own.
House-buying companies have one goal in mind: buy cheap, flip fast, sell high. This means that they don’t have your best interests in mind, and sometimes this can result in scams or bad business deals.
Companies Who Buy Houses: Should You Consider or Steer Clear?
This depends on the quality of your home, how quickly you need to sell, and what risks you’re willing to take on your own.
If you do opt to sell to a house-buying company, we suggest speaking with a realtor or appraiser about your home’s value, and you may also consider an attorney to review any contracts that the company asks you to sign.
Interested in learning more, or ready to move forward? Give us a shout today!