Page contents Stop! Read This Before You Sell Your House for Cash

Stop! Read This Before You Sell Your House for Cash



On telephone poles, on bus stops, you’ve seen the signs—handwritten in fluorescent colors—“WE WILL BUY YOUR HOUSE FOR CASH”. Over the past couple years, you’ve started to notice another trend: those internet based tech companies, otherwise known as "iBuyers" or ".com homebuyers" that make cash home offers and close in less than 7 days.


Who are these we buy houses companies and what is the best decision you can make if you're looking to sell your house fast?


Quick Guide on Cash for Houses Companies

Home investors buying homes for cash and selling for a large profit is big business. Leading real estate data collector, NAR (National Association of Realtors) estimates that in 2019, over 20% of home sales were all cash, and over 10% of those homes were sold to real estate investors.


Why so many people selling their homes for cash? Because it's easy. Like trading in your old car at a dealership, it saves you time and money buy trading it in to a professional who knows what they are doing, and can overlook the dings and scratches and give you a sure fire offer that you can count on. You can DIY the repairs and pay to fix it up, but sometimes just trading it in makes a heck of a lot more sense.


Who is buying houses for cash?

A cash buyer is a company, or an individual who doesn't require financing to purchase a property. Why would you want to sell to a cash buyer? Because when you sell to a cash buyer you save a lot of time and money. You don't have to make repairs, you don't have to stage the home, or pay months and months of mortgage payments, insurance payments and HOA fees. You can make one quick deal, set your timeline, and be done with the home selling process once and for all. For some people, this makes a lot of sense. For others, it may or may not, but here's a quick outline of the types of cash for houses investors that can help you find the home investor you're looking for:


Cash Home Buyer Type A: House flippers

The best example of a house flipper are the investors you see on HGTV buying homes for a lower price, fixing them up and selling them for a lot more. If you sell to a house flipper, you're not alone, as over 200k homes were sold to flippers in 2018, making up almost 8% of all residential home sales.



Cash Home Buyer Type B: Buy-and-hold investors

Buy-and-hold investors will buy your home, and then rent it to others for a long term strategy. Usually, these investors are individuals, but many times there are larger companies buying dozens of properties per year. These are called Institutional Investors, and institutional investors make up about 2% of residential sales per year.


Buy-and-hold investors usually give you a better price than a house flipper because they aren't looking to make a quick buy with a low purchase price, they can afford to pay a little more because they will hold onto the home for a longer period of time. Why? Because ultimately, someone else will be paying the bill.



Cash Home Buyer Type C: iBuyers

The past few years have see the rise of big tech companies entering into the sell house for cash world and those are the "iBuyers" which is an acronym for "Instant Buyers". These companies such as Opendoor.com, Homelight.com, Offerpad.com use automated valuation models (AVMs) to make offers on residential properties that are usually in way finer condition than a we buy ugly houses type property. While they say they can make your life easier by using technology, make sure to read the fine print of the "inspection agreements" they send, because many times these are actual legally binding agreements that don't allow you to get offers from other investors. While a typical realtor will charge you 2.5-6%, iBuyers claim to give you more, but in reality the fine print will tell you they are asking 7-10% commission. While this may seem like a deal, if you do the math, it can be much more beneficial to sell to a "We Buy Houses" company.


For example, 10% of customers who sold to We Buy Houses Companies in Southern California made more profit on their home sale selling for a lower up front price with no commissions or realtor fees, then selling for a higher price with 7-10% hidden fees.


3 things you should know about selling your house for cash


1. We Buy Houses will match you with instant home buyers in your area.

As of 2020, over 90% of homesellers listed their house with a real estate agent.

Realtors and Real Estate agents do a lot of jobs in order to sell your house, like staging, preparing it, showing it, assessing the market, setting an unreasonably high price and then working their clients down over time until they finally give into a lower price. It's a lot of work, and usually may or may not get the price that they advertise when they are first trying to get you to sign exclusive listing agreements.


But let's be real, if you need to sell your home fast for cash, or need a quicker transaction and don't the hassle, the best stop is to search for a cash offer for your home. For this reason, the We Buy Houses Simple Form is the best way to get through the clutter and get the best price on a cash offer, with no hassle.


It’s good to have choices!


Need a No-Fuss Home Sale?

Find out what cash buyers are willing to pay for your home right now.


2. Verified, We Buy Houses direct buyers will purchase your house as-is.

Is your house need fixing? Are there repairs that will cost money? It's possible to sell your house as-is. And for many, this is the best way to sell your house quickly, and for the least out-of-pocket costs.


3. Selling a house as-is for a cash offer is faster and MUCH easier.

When you have easy access to an interested investor, who by the way are pre-qualified, 2 things happen. 1) you won't need to make the house nice for them to understand the value. 2) you can count on a quick close because THEY HAVE THE CASH TO BUY YOUR HOUSE FAST. For this and previously mentioned reasons, a We Buy Houses investor can be an especially smart choice, including scenarios where you do not have the time or money to hold onto the property, for example, you need to leave town for a new job, a health concern or a life change.


To quickly recap the Selling Your House For Cash options:


What is House for Cash?

It is the opportunity to sell your house fast for cash, by avoiding the traditional setps hassles of listing, showing and cleaning and repairing, and closing the deal within a few weeks or even a few days.

What’s the best play for a homeowner?

If you need to sell your house fast, We Buy Houses has a form that's easy to fill out and will get you an instant offer.

What’s the catch?

It's not straightforward, but it's important to know your options. Hopefully this article has helped clarify more for you. If you need more assistance, please contact an expert and they can walk you through the best options for your home selling needs, free of charge.

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