Are Companies that Buy Houses for Cash Legit?
May 28, 2020
Selling a house for cash in just a few days may sound too good to be true. You may look at all those “We Buy Houses Fast” or “I Buy Houses Cash” posters with a wary eye. Sure, you may be motivated to sell your house fast, but you don’t want to fall for a scam. So, are companies that buy houses for cash legit? With very few exceptions, yes, they are legitimate! And we’ll tell you why.
Who are the People Behind the “We Buy Houses” Signs?
The people who buy houses for cash are primarily either a real estate investor, wholesaler, or flipper. That means they are investing in your house in order to turn a profit. It is perfectly legal, of course, seeing as most businesses run on that same platform. Wholesale stores, for instance, buy products and sell them for more in their stores.
Companies that buy houses for cash are legitimate real estate investors. Either they partner with cash investors, remodeling contractors, and real estate agents or, in many cases, they do all of the above in-house. Just remember, selling a house for cash is still a legal process that involves contracts, proof of funds, and other legalities. So, to avoid a possible scammer, you just need to familiarize yourself with what a “Sell House For Cash” Deal Entails.
The REAL Question: Are Cash Offers a Good Deal?
When people ask if “we buy houses” are a scam, what they are really asking is, “Am I getting a bad deal?” The answer depends entirely on your situation. As investors, cash buyers are not going to buy your house at market value. They are businessmen, after all, and must turn a profit to survive. And though they offer less money, there is other value for motivated sellers, such as:
- completing the sales transaction in 5-7 days (compared to an average of 90 days)
- selling a house as-is
- inspections are often not required
- no real estate agent commissions
To be sure, you can run the numbers for yourself, as explained in How to Calculate if Your “Sell House for Cash” Offer is Fair.
What is a Motivated Seller?
Cash investors look for motivated sellers because the benefits they offer (as listed above) hold the most value for people who need to sell quickly. Motivated sellers are usually in a time-sensitive predicament, such as:
- They inherited a home or are in probate
- Their home would not pass inspection or needs expensive repairs
- Financially distressed homeowners, usually facing foreclosure or unexpected medical bills
- Divorcing couples
- Job transfers
- Discouraged landlords who want to cash out on their rental property
- Flippers who need to cut their losses
Looking at the list, you may be tempted to think that cash buyers are preying on people in hard times. But cash buyers provide a much-needed solution to people in times of need. Time is a valuable commodity, if not the most valuable, and that is what companies that buy houses for cash really bring to the table.
If time is of the essence, Tropic Coast Homes can help. Complete our no-obligation form and receive a cash offer today.