Are you contemplating selling your house to one of those “we buy houses” companies? For some home owners it is a good option. If you have never worked with one before, or had a friend that has used one, you may be wondering just how do those companies work. Keep reading to learn some insights as to how these companies work.
How Do We Buy Houses Companies Work?
Usually when someone is considering selling a property to one of these companies they can’t sell the traditional way with a realtor. Maybe the home is in disrepair, ugly, or some other circumstance. Now maybe an agent has told you that you need to make these repairs before they will list it, or you don’t have the money to make repairs. Selling your property without an agent can be a very time consuming process, and a real headache. Selling to one of these companies can help ease some of this pain and speed the process of selling your property on your own (check out our article “Can You Sell Your House Without An Agent? ” to learn more about selling without using a realtor).
So what is the process involved in selling to one of these companies?
1. Fill out the Property Details on a Form
You may visit their office and fill out the form which asks for your personal data, property location, and details, and other information needed to buy your house. For more convenience, you may also just want to visit their website, fill in, and submit the form online.
2. Buyer Arranges Schedule for Home Checking
Once the company receives your form, they will review the information and contact you to schedule a meeting and check your house for sale personally. This will help them give a cost estimate of the value of your home.
In today’s times in rare that someone visits an office. It’s a lot easier to go online and fill out an online form or simply pickup the phone and call, eliminating the need of you having to drive all over town.
After the company has looked at your property and done their due diligence they will then usually make you an offer on your home. It’s important to note that no matter what company you are using you can either accept or reject that offer.
How Do They Arrive At Their Price?
There are a few things that are taken into consideration when they make you an offer on your property. Here is a great explanation of how most legitimate companies arrive at their offer price:
Basically, we take 80% of the full market value of your home, also known as the after repair value, and then we subtract the estimated repair costs to determine a rough estimate of how much cash we can safely pay for the home while mitigating our risk and ensuring that the deal is profitable. Of course we are a company, primarily a fix and flip company, who is looking to earn a profit on the deal, which is why our home buying service revolves around being able to successfully find win-win scenarios with our clients where both parties involved are going to reap a massive benefit from the transaction.
A good we buy houses company will be concerned with the selling of your house being a win-win situation for both themselves and you. The media and some realtors like to paint the picture that all we buy houses companies are bad and trying to rip you off. They are a company, and they are interested in making a profit. As we have noted before, using this type of company isn’t for everybody. They primarily help home owners that need to sell and there is some kind of problem with the house. If your house is in tip top condition and you have a couple of months to wait on a buyer, then this type of company is not for you. You’d get much more money going through an agent.
It’s Not Just Ugly Houses That They Buy
Some people mistakenly think that these companies only buy houses that are ugly on the outside, when in fact they can help in a lot of other situations as well:
They also offer to buy homes when the mortgage financing isn’t ideal, perhaps because of a high interest rate and the inability to refinance, or an adjustable-rate mortgage that becomes too expensive. Someone facing the prospect of foreclosure could also potentially own an ugly home.
Oh, and let’s not forget homes that are simply ugly because of some bad memory, such as a divorce or something much worse.
They also seem to target homes with problematic renters, or homes that were inherited that the family doesn’t want to deal with.
Then there are the typical ugly houses, such as those in disrepair, those with water damage, termites, roof damage, or simply those that have been neglected or aged terribly.
Those are just a few of the reasons, and there are a lot more why you might want to consider using one of these companies.
Lastly, here is a video that explains a little more as well:
Summing It Up
Selling to one of these companies isn’t for everyone. However if your property has serious issues, or you have some other sort of problem, these companies can be a life saver.
It’s important to remember that they are a company, they do this to put food on the table of their employees, just like any other company. And a good we buy houses company will look out for your best interest.
If you have a house in Lithia Springs, or any part of Metro Atlanta, and it’s in disrepair or you are facing a situation that you need to sell quickly and you are looking for a we buy houses company, we would like the opportunity to make you an offer on your property. You can visit our website, or call us any time at 770-756-8680.