Are Cash Buying House Companies For Real?

You may have seen in a previous post that we are now heavily into real estate. A big question across the web is what is all the hoopla with these cash buying house companies, and are they for real. First, let’s just look at why someone would consider selling their home to one of these companies.

Cost Of Selling Your House With An Agent

There are a few reasons why people would want to use a cash buying company. The cost of selling with a real estate agent is usually the biggest reason:

With any service provider their is a cost of doing business. The average expense for a realtor is 6-7% of the sales price of your home. For example if you sell your home for $200,000 it will cost you anywhere from $12,000-$14,000 at closing. If you decide to use a real estate professional to sell your property then you will more than likely be dealing with financed buyers which means you might possible have to pay seller commissions ranging anywhere from $3,000 – $5,000. Selling to a financed buyer also means once you sign a contract to purchase you will usually have to wait anywhere from 30-60 days to close.

Continue reading  “Realtors vs The We Buy Houses Cash Companies

As you can see, that’s a lot of money. It can all add up fast and take a rather large chunk of money from your available funds to purchase your next property.

Another reason people choose these companies is the speed of which they can buy your house. Many of these companies advertise that they can close on your house in 7 days or less.

There is one major drawback of selling your home to one of these companies –

 

Downside Of Using A Company That Buys Houses

The biggest problem is that you more than likely will not get as much money as if you had sold your home outright to another individual –

When you hire a real estate agent, he or she is working to make you as much money as possible from your sale. The Realtor takes a percentage of the sale price as financial compensation, so he or she is motivated to fetch the best price. If a real estate agent believes that he or she can sell your home, there is a good chance that you can make more than you would if you sell to a house flipping company. In fact, I will go out on a limb as say you are GUARANTEED to get far more money when you list your home with a real estate agent. Selling to a real estate investor will almost always end up netting you less money!

Continue reading “Pros and Cons of We Buy Houses Flipping Companies

So a realtor will most likely work much harder at getting you the absolute best price for your house, at least usually they will. Sometimes a realtor may be more interested in just getting a deal done than having your best interest in mind. It all depends on the quality of your realtor.

This video also has some great insight on realtor vs companies:

So the quick answer about these companies being for real – yes they are. However, if you don’t need to hurry and sell, then using a real estate agent will most likely bring you more money for the sale of your home.

Looking To Learn More? Check out these blogs:

Home Selling
Sell Your Home Now
Porchlight