You may have heard about companies who buy houses for cash in many different ways. You might have seen an ad online. You might have driven past one of those “We Buy Houses for Cash” signs at an intersection. You might have been doing research on what real estate investors do and how they work. However you’ve heard about them, it might not be clear how these companies work and why they are willing to pay cash for your house. Let’s take a closer look at who these companies are and why you may want to consider working with them.
Who Buys Houses For Cash In Milwaukee WI?
There are lots of different companies that fall under the “We Buy Houses” banner, some are more trustworthy than others. Basically, these companies or investors are otherwise known as cash buyers or “as-is” buyers who will be your property for slightly less than market value for cash or some other kind of financial arrangement you agree to. You don’t have to make any repairs or updates to the house (hence, as-is) before selling. These companies then take care of any damage or financial issues involved in the house than either sell it for profit or act as landlords on the property.
Who Do These Companies Work With?
While a real estate investor might work with all kinds of homeowners and sellers, there are specific types of situations that often come up more than others in these kinds of transactions. The most common issue facing a seller is that they have some kind of problem that is preventing them from selling a house on the open market. It could be a repair issue, like water damage, mold damage, or general disrepair. It could be a financial issue, such as foreclosure, a tax lien. It could be a lifestyle change that requires a very quick sale, such as divorce or relocation. It could also be a unique situation like an inherited property they don’t want to own or a property full of squatters or hoarders. And we haven’t even mentioned termite infestations, code violations, lawsuits, and the many other issues that plague homeowners. These situations all come with their own complications and financial burdens and it’s often much easier to sell the house as-is for cash and then let someone else deal with the problems.
How Can These Buyers Pay in Cash?
It’s important to remember that these companies are investors and they’re making a business decision when they buy your house for cash. Their business is often about taking distressed properties and flipping them so they can be sold for profit or lived in by a tenant. If they’re legitimate and have been doing this for a while, they likely have the cash reserves needed to put towards purchasing your house with the presumption that they can make that back with profit at a later date.
It’s possible that a cash buyer is working with other investors who provide them with the capital needed to purchase homes before they’re able to recoup their costs and turn a profit. It’s also possible that they have received a hard money loan, which is any kind of loan that is based on an asset or property used as collateral. These kinds of loans are often used instead of those that rely on credit scores or going through a bank. However, a legitimate investor should have the cash available to buy your house at a fair price before they begin negotiating with you regardless of the final price.
How to Spot a Scam
Of course, there are We Buy Houses companies and investors who are just looking for a quick buck and don’t have your best interests in mind. So it’s important that you understand how to spot them and avoid them.
The most obvious way to spot a scam is how hard it is to find out more information about the cash buyer or investor. Do they openly share their company name, phone number, website, or office location? A legitimate business doesn’t have any reason to withhold that kind of information from you, and if they don’t have a dedicated office location they should disclose that as well. A phone number alone doesn’t prove anything either, as technology allows people to mask their actual numbers through rerouting.
Once you know the company name, you should be able to find out as much as possible. Visit their website and look around. Do a web search and see what comes up about them. Check review sites such as Yelp and Manta to see if there are reviews and more info. Take a look at social media sites such as Facebook and LinkedIn to find out what people are saying about them. And visit the Better Business Bureau website to see if they are accredited and have any outstanding issues to their name.
It shouldn’t be hard to find all this info and while not every business will have everything, a legit We Buy Houses company will have most of them. If you have a hard time finding other people who have dealt with the company, that’s a red flag.
Should I Sell My House for Cash?
Ultimately, the answer is that it depends on your situation, the condition of your house, and much time and money you’re willing to put into selling your house. If you feel like selling your house on the open market is going to be a waste of time and money, or you’re concerned about real estate agent fees and closing costs, you should consider reaching out to a reputable cash buyer like Cream City Home Buyers They can buy your house in just about any condition and can even close the deal in as little as seven days. Then you’ll be able to walk away with cash in your hands and plenty of free time and energy to put towards your next residence.
The key is to find a We Buy Houses buyer who is actually interested in finding out what your situation is and working with you on a fair offer and honest process. Don’t let anyone tell you that you have to sign contracts by a certain time or force you to sell your house. A reputable cash buyer will respect your decision process and work with you on the best situation for both sides.