Can You trust a We Buy Houses Company?
When it comes time to sell your house, you have a few options. You can list it with a real estate agent, put it up for sale on your own, or sell it to an investor.
Each option has its pros and cons, and the best option for you will depend on your individual situation.
In this blog post, we will discuss the pros and cons of working with an investor to sell your house fast in Houston Tx.
The main advantage of working with an investor is that you can sell your house fast and get a fair cash offer with no obligations.
Investors are always looking for new properties to invest in, so they can often close on a sale within a few days or weeks.
This is much faster than selling through a real estate agent, who may have several other houses to sell and could take months to find a buyer for your property.
If you have the time and your home is in tip-top shape. Your best bet to get full market value is to list it with a realtor.
However, if your home needs a lot of repairs or you don’t have the time to wait for it to sell, an investor could be what you are looking for. Selling your home this way isn’t for all situations, far from it. So, selling with a realtor or by yourself is a viable option.
Who buys a house with cash?
Contrary to popular belief, not all people buying properties with cash are investors. Yes, some people do have the expendable cash to buy without financing, and it’s their primary residence, not an investment.
Traditionally, cash buyers tend to be concentrated at either extreme of the housing market. On the low end, you’ll see house flippers and investors buying homes that might not qualify for a mortgage due to condition, price, or both. On the high end, you will find more experienced investors with deeper pockets, chasing high-profit margins.
Pros and Cons of working with an investor
Pros of working with and investor
The main disadvantage of working with an investor is that you may not get as much money for your house as you would if you sold it through a real estate agent.
Another advantage of working with an investor is that you can avoid going through a foreclosure or short sale.
If you’re having trouble making your mortgage payments, selling to an investor may be the best option for you.
Investors are often willing to pay cash for houses, which can help you avoid costly fees and penalties associated with a foreclosure or short sale.
No prep work
With a traditional home sale, you’ll have to do a lot of preparing before you list, from cleaning and decluttering to taking listing photos and staging. When you sell to an investor, you don’t have to do any of that.
They will buy your home as-is, so you can avoid the hassle and expense of making repairs or fixing up your property. This is especially helpful if your house needs a lot of work or you don’t have the time to do it yourself.
Getting a fair all-cash offer can be a fast and easy way to get rid of your property, but it’s not for everyone. Be sure to weigh the pros and cons before making a decision.
Fast escrow period
Unlike in a traditional sale, where a buyer will require a 45-day escrow period to allow enough time for inspections, appraisals, and mortgage approval contingencies.
An investor can get this process completed in a much shorter time because they are buying the home as-is and often times with no inspections or contingencies.
This can be a huge advantage if you need to sell your house quickly or are facing foreclosure.
Simple transaction
When you sell your house to real estate investors, the sale is a very simple transaction with few or no contingencies.
This can be helpful if you need to sell your house quickly and don’t want to deal with the hassle of inspections, appraisals, and other traditional buyer requirements.
They try to streamline the buying process so time can be spent on renovating and increasing the market value of the home.
Flexible timeline
Investors oftentimes are more flexible with the close date than a traditional buyer. They are working on more than one property at a time so they are more willing to work around your schedule and do what’s best for both parties.
It also gives the seller more time to take care of anything that needs attending to.
There are a number of reasons why you might want to sell your house. You may be moving out of state, you may need to sell quickly to avoid foreclosure, or your home may need a lot of repairs and you don’t have the time or money to fix it up. Having that flexibility can go a long way.
All cash offers
Investors typically buy homes at a discount in order to make a profit when they resell them. That’s the whole point of being in business. They have to find properties that value can be added. This is usually in the form of sweat equity.
We buy houses investors, will often make you an all-cash offer. Securing a cash offer is especially important if your home can’t qualify for financing. Since most potential buyers are using financing.
This is often the case with fixer-uppers or properties that need a lot of work. And if you’re in a situation where you need to sell quickly, an all-cash offer can be very appealing.
You may be thinking, “Why would I want to sell my house for less than it’s worth?”
Unfortunately, if your house is in disrepair, it’s most likely not worth what you think it is.
Avoid foreclosure or short sale
Another advantage of working with an investor is that you can avoid going through a foreclosure or short sale.
If you’re having trouble making your mortgage payments, selling to an investor may be the best option for you.
Local Houston home buyers are often willing to work with you to come up with a solution that is beneficial for both parties.
This can help you avoid the negative consequences associated with a foreclosure or short sale, such as damage to your credit score.
Cons of working with an investor
There are a few things to consider before working with an investor.
First, investors typically buy homes at a discount in order to make a profit when they resell them. So you may be selling your home for less than it’s worth. Here is some other situation you what to look out for.
Scammers
Second, there are a lot of scammers out there who claim to be we buy houses investors. You should always do your research and work with a reputable company. If it sounds too good to be true, oftentimes it is.
Do your homework and take the time to find out who you are working with. Just because a company is large doesn’t mean its business practices are ethical. And if a company is small doesn’t mean they won’t be in a position to help you.
Lower price
Third, selling your home to an investor mostly isn’t going to be for top dollar. This is because investors typically resell the homes they buy at a higher price than they paid for them.
This can be a disadvantage if you’re looking to get top dollar for your home. However, if your home isn’t in top shape, you shouldn’t expect to get the highest price.
No realtor
Fourth, you will likely have to pay no realtor fees when selling to an investor.
While this is a big advantage, it’s important to note that investors typically do not offer as much money as a traditional buyer.
So if your home is in great condition and you’re looking for the best price possible, working with an investor might not work for you.
Lack of competition
There are more home buyers on the market than all-cash companies. And this can work to your advantage because you’ll likely have more buyers competing for your home, which can drive up the price.
When selling to an investor, you’re eliminating some of those buyers and, as a result, there may be less competition.
Should you accept an all-cash offer?
It’s probably pretty clear by now that everyone’s circumstances are different and you’ll need to decide what works best for you. Whether you should accept an all-cash offer is your choice.
You should keep in mind that we buy houses companies are businesses. They’re looking to make a profit, so they’re not going to pay top dollar for your home.
If you have the time and patience to go through the traditional home-selling process, working with a real estate agent could be the better way.
How you can find an investor
The best way to find local Houston home buyers is to do a Google search for “we buy houses Houston” or “Houston house buyers.”
You can also check out websites like Zillow and Trulia. There are a number of investors that advertise on these platforms. Or even check Craig’s list adds. But be careful you probably will find a lot of scammers this way.
Another option is to contact a local real estate agent and ask if they know of any investors that are looking to buy in your area.
You can also ask family and friends if they know anyone who might be interested in buying your house.
The bottom line, selling your house to an investor has a number of advantages, including a fast escrow period, a simple transaction, and a flexible timeline.
How long does it take for a cash buyer to close in Houston TX?
The average time it takes for a cash buyer to close is usually around seven days. This may vary depending on the company you work with and how busy they are at the time.
In today’s market, selling your home through a realtor can take an average of two months. That’s a lot longer than the average of an investor.
Working with a cash buyer is definitely the way to go if you’re looking for a fast and easy transaction.
Are all-cash buyers legit?
It’s important to do your research and make sure you’re working with a reputable company.
You can check the Better Business Bureau website to see if there have been any complaints filed against the company you’re considering working with.
You should also ask for references from past clients and call them to get their opinions about their experience.
When working with a cash buyer, it’s important to remember that you’re doing business with a company, not an individual.
Just because they’re offering all-cash doesn’t mean they’re legitimate or ethical. Do your research before signing any contracts.
Repairs we buy houses companies look for in Houston TX
Houston Tx house buyers love to find homes where they can add sweat equity in order to increase their value. Here are some of the issues they look for in a potential investment property.
Foundation issues
Foundation problems are a big one we look for. A house with a cracked foundation is going to need some serious repairs and will likely cost the investor a lot of money.
However, experienced investors see this as a good opportunity. And new investors should definitely shy away from this kind of project. Because you can lose a lot of money if you don’t know what you are doing.
Water damage
Water damage is another big issue we look for when we are evaluating a property.
This can be caused by a number of things, including leaks in the roof, windows, or pipes. It can also be caused by flooding or other natural disasters.
If a house has water damage, it will need to be repaired before it can be sold. This can be a costly and time-consuming process, so rookie investors usually avoid properties with this issue.
HVAC problems
Texas temperatures can vary widely, but you can bet on sweltering summers, with highs often rising above 100 degrees.
That’s why a functional HVAC system is a must in any Houston home.
If a house doesn’t have a working air conditioner, it will be very difficult to sell, no matter what time of year it is.
An HVAC can cost $5,000 to $10,000 but it’s a cost that’s essential to sell your house in Texas for top dollar.
Often times this is a quick and easy fix for most investors.
Major roof repairs
A roof is a big selling point for any house, but it’s also a big expense.
If a roof needs to be replaced, it can cost upwards of $20,000. And if the damage is extensive, the cost can be even higher.
This is definitely not a repair that most investors are willing to take on, much less a homeowner. As we said above, these types of renovation are best left to experienced investors.
Plumbing issues
Plumbing problems are another common issue we see in Houston homes.
Leaking pipes, clogged drains, and faulty water heaters are just a few of the issues that can arise.
These problems can be costly to fix, but they’re often unavoidable.
So, those are some of the most common repair issues we see in Houston homes. As you can see, they can be quite costly and time-consuming to fix.
But with a little bit of experience (and a lot of cash), an investor can make a lot of money by repairing and flipping these homes.
Remember, when you’re selling your home to an investor, it’s important to do your research and know what you’re getting into.
Don’t be afraid to ask questions or get references from past clients.
Conclusion
As you can see, there are a lot of different things to consider when selling your home.
Working with an investor has its pros and cons, just like working with any other type of buyer.
But if you’re looking for a fast sale, an investor might be the right option for you. Thanks for reading!