Are Cash for Houses Companies a Scam?
You want to sell your house fast. You’ve heard about “cash-for-houses” companies, but are they a scam? Instinct tells you that something that’s too good to be true probably is.
Let’s take a look at cash-for-houses companies, what they do, and why they might be a good fit for you.
What Is a Cash-for-Houses Company?
A cash-for-houses company is a company that pays cash (no mortgage loan) for an as-is house — a house in any condition. Cash-for-houses companies don’t get mortgage lenders or real estate agents involved, so they’re able to give individuals a fair market value for their property as it is now. That means no repairs, no renovations, nothing.
Why Do People Think a Cash-for-Houses Company Is a Scam?
A real estate agent comes in and says that with $25,000 in repairs, your house could be worth $200,000. Meanwhile, a cash-for-houses company offers you $160,000 for your property now.
That sounds like a scam, right? After all, that’s a difference of $40,000.
Perhaps, but that’s not the full story. First, you’d need to pay $25,000 up front to make those repairs, and you’re more likely to go over than under. You’ll need to pay the mortgage and property taxes while you wait to sell, which could easily be another few thousand dollars.
Once you actually find a buyer, you may need to pay another several thousand in concessions (such as getting new appliances or carpeting). Finally, you need to pay the real estate agent a large percentage of the sale — perhaps up to 6% or $12,000 in this example.
All told, you end up spending money, time, and effort, and you end up with roughly the same amount. It’s just harder to do. And you aren’t guaranteed that sale at $200,000.
The Benefits of Working With a Cash-for-Houses Company
A cash-for-houses company is, essentially, the most efficient way to sell a home. Consider:
- You can sell your home immediately. There’s no staging, open houses, or going to market. You can sell your house within days.
- You don’t need to worry about the deal falling through. Once you accept the no-obligation offer, you’ll be able to close fast. Mortgage lenders can always pull their loans, leaving you at the start of the process.
- You won’t have to negotiate with buyers. You don’t need to deal with negotiations at all. You just get an offer that you can accept or reject.
- You don’t have to pay real estate fees. Real estate fees can cut substantially into your profit. A cash-for-houses company does it all for you.
- You don’t have to start repairs or renovations. Some properties need extensive repairs and renovations that can get much more expensive.
How do these companies make money? They can renovate and repair your home far cheaper than you can because they already have experts and specialists on their company payroll. Thus, they’re able to give you the fair value of your property today, without you having to do any extensive remodeling or renovation.
How Can You Sell Your Home to a Cash-for-Houses Company?
It’s as simple as a phone call. To sell your house to a cash-for-houses company, you just call them and ask them to visit. They come by, inspect your house, and determine a fair value to offer you. You can take your time, consider your options, and then accept your offer. Once the offer is accepted, the deal can be closed within days, or you can put it off until you can find a suitable place to live.
We buy houses in any condition — old houses, outdated houses, ugly houses, and more. You can’t know what we’ll offer until you ask!
A cash-for-houses company is one of many options that you have as a homeowner. But it’s often the most efficient and expedient one. Contact We Buy Salt Lake City Houses to find out more about selling your Salt Lake City house fast for cash.