Whenever a homeowner sees a company with an advertisement with the phrase “we buy houses” or something similar, they start to get thoughts about a buyer giving them a generous amount for their home. While that phrase can lead to some good sale prices on homes, it’s also possible for it to lead to a less than stellar outcome. Before selling a house to the first company that offers to buy it, homeowners should consider the following.
Home buying companies of this nature often say that sellers won’t have to pay commission for real estate. They’ll go on about how real estate agents are making lots of money off the seller’s back, but there’s no way an agent can make enough to be that rich in one home alone. The companies prey on this misinformation and rely on the fact that sellers won’t know about hiring list agents for more money. Fees aren’t charged by these companies because of n house sales processing and practices to dodge title insurance or paying for title policies themselves.
Companies that buy homes in this manner were called equity purchase companies in the past because they use negotiations to get the lowest possible price for a homeowners equity. These companies take over home loans like mortgage payments, but the seller isn’t completely absolved of them. The offers given to homeowners is lower than 80% of the home’s actual value on the market, with a 50% or more equity position discount. The companies also try to close faster by getting credit lines and cash pools to close out homeowners.
Both a regular Sacramento cash home buyer and a company that buys quickly will pay the homeowner money, but there is a key difference between the two. The regular home buyer is willing to give a homeowner more for their home and attempt to pay off their mortgages with extra financing. The quick buying company will waste no time reselling the home to the average person at a raised price for maximum returns. A better alternative for a homeowner would be to hire a brokerage will a good reputation to officiate a home listing.
The next time a company says “we buy houses”, think about their true intentions. Rather than trying to sell a house quickly for little, do it the right way.