Separating FACT from FICTION about we buy houses companies!
In this Blog post:
- What They Do
- The 4 Types of We Buy Houses Companies
- Why Property Owners Need ‘We Buy Houses Companies
- How A Reputable We Buy Houses Company Helps Sellers
- How Can Sellers Protect Their Home?
- Do Your Homework
- Honest and Reputable We Buy Houses Companies Can Solve These Problems
- Real Estate Agent vs We Buy Houses Companies
Lately, “we buy houses” companies in NJ and PA have been under excessive criticism, with some calling them dishonest or taking advantage of sellers.
While it’s true that a few companies may have acted unethically, it’s not fair to judge the whole industry based on those cases.
The truth is that many “we buy houses” companies in NJ and PA offer an important service for homeowners who find it hard to sell their properties through traditional real estate methods.
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What exactly do “we buy houses” companies in NJ and PA do?
They help homeowners deal with problems, like needed repairs, renovations, lack of time, or difficult situations.
These companies focus on purchasing homes fast and easily, giving a cash offer within a day.
The 4 Types of We Buy Houses Companies
Regardless of the type of ‘we buy houses’ company you choose to work with. The end result should be the same. You sell your house!
Which is a win-win situation for all parties involved.
Wholesaler
Wholesalers flip the contract you sign to sell your house, to an end-buyer
Fix & Flip
Fix & flip companies purchase your home, fix it up, and sell for a profit.
Buy & Hold
Buy & hold companies purchase your house, perform some repairs and rent to a tenant.
Multi-Investor
Multi-investors will participate in 2 or more of the investment strategies
Why Property Owners Need ‘We Buy Houses Companies
Why do property owners need this type of service?
The answer lies in the complexities of traditional real estate transactions.
When you sell your home through a realtor, you can expect to wait several months for the sale to close.
You’ll also need to invest time and money in repairs and renovations to make your home attractive to potential buyers.
And even then, there’s no guarantee that the sale will go through.
For property owners who are facing a time constraint, such as a looming foreclosure or a need to relocate quickly, traditional real estate transactions can be a nightmare.
That’s where “we buy houses” companies in NJ and PA come in…
These companies can provide a quick and hassle-free solution, allowing property owners to sell their homes rapidly and efficiently.
How A Reputable We Buy Houses Company Helps Sellers
They treat every seller with honesty and respect.
They will always…
1
Be 100% transparent about how offers are determined.
2
Present you with all of your options so you can sell your home in the best way possible.
3
Share up-to-date market information with you for your area.
4
Work on your timeframe, closing when it is convenient for you.
5
Buy your home without charging a dime in commissions or fees
6
If you accept, they will handle everything and close in a matter of days!
How Can Sellers Protect Their Home?
Of course, not all “we buy houses” companies are created equal.
While some companies are reputable and honest, others may engage in unscrupulous practices.
So, how do you separate the Good from the BAD?
Here are some tips for choosing a reputable “we buy houses” company:
- Do your research: Look for companies with a proven track record of success and a strong reputation online. Check for reviews and testimonials from past clients, and look for any complaints or red flags.
- Check for credentials: Ensure the company is licensed and insured to operate in your state. You can check with your state’s real estate commission or attorney general’s office to verify a company’s credentials.
- Read reviews and testimonials: Pay attention to what past clients have to say about their experiences. Look for reviews on websites like Google, Yelp, and Facebook, and check for testimonials on the company’s website.
- Get multiple offers: Don’t be afraid to shop around and compare offers from different companies. This will give you a sense of the market value of your home and help you choose the best offer.
- Watch out for red flags: Be wary of companies that make unrealistic promises or charge upfront fees. Reputable companies will never ask for payment upfront, and they’ll always provide a clear and transparent explanation of their services. Most companies Do Not charge any fees or closing costs.
Do Your Homework
Perform your due diligence when choosing a reputable “we buy houses” company.
You can ensure a smooth and stress-free transaction.
These companies can provide a vital service to property owners struggling to sell their homes through traditional real estate channels.
In fact, “we buy houses” companies in NJ and PA can be a lifeline for property owners who are facing a range of challenges.
From repairs and renovations to time constraints and complex situations, these companies can provide a quick and efficient solution.
We Buy Houses Companies Case Studies
Case Study 1. Imagine you’re a property owner who’s inherited a home from a family member. You may not want or need the property, but you’re not sure how to sell it quickly and efficiently.
“That’s where a “we buy houses” company can help. These companies can provide a cash offer within 24 hours, allowing you to sell the property rapidly and efficiently.”
Case Study 2. You’re a property owner who’s facing a looming foreclosure. You may be struggling to make your mortgage payments, and you’re not sure how to avoid foreclosure.
“That’s where a “we buy houses” company can help. These companies can provide a quick and efficient solution, allowing you to sell your home rapidly and avoid foreclosure.”
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We buy houses companies, are not retail buyers…
They have to purchase at a discount to make a profit, just like Walmart, Target, and Costco.
65-70% of ARV (after repair value) minus repairs and renovations, is the sweet spot for we buy houses companies in NJ and PA.
Meaning, that to have an acceptable profit margin, properties must be purchased within 65-70% of the after repair value -minus repairs and renovations.
If the ‘we buy houses’ company is a wholesaler, a wholesaling fee is charged also.
Most sellers are unaware that a we buy houses company is not a retail buyer.
Honest and Reputable We Buy Houses Companys Can Solve Many Problems
An honest, reputable, and experienced we buy houses company can solve many problems for sellers.
Realtors are very limited in what they can do beyond the traditional real estate transaction.
In fact, when everything else fails, realtors will seek out a cash buyer (we buy houses company) to close a problem deal transaction.
Mortgage companies make sellers and buyers literally ‘jump through hoops’ to close a deal. Investors do not!
Here are some of the many problems a ‘we buy houses’ company can solve:
- Divorce
- Trouble Selling
- Behind on Payments
- Owe Taxes
- No Equity
- Disability
- Bad Tenants
- Facing Foreclosure
- House In Probate
- Fire Damage
- Condemned Property
- Ugly House
- Title Issues
- Hoarders
- Liens
- Medical Bills
- Retiring
- Judgments
- Structural Issues
- Relocation
- Bad Neighborhood
- Downsizing
- Code Violations
- Facing Legal Issues
- Death In The Family
- Liquidating Asset
- Inherited Property
- Job Loss
- Bad Mortgage
- Expensive Repairs
- Bankruptcy
- Unwanted Rental Property
Traditional real estate transactions have their place. But, creativity and reliability go to an honest and reputable we buy houses company.
Real Estate Agent vs We Buy Houses Company
What are the benefits of selling directly to a We Buy Houses Company?
They provide options for selling your home. No listing fees, no agent commissions, and a quick and hassle-free closing process. You won’t have to worry about the hassle of repairs or renovations. Getting rid of the headache and hassle of dealing with an unwanted property is their service to you.
See the comparison below:
We Buy Houses Company
Sell your house to an investor
Investors make fair cash offers so you can sell without the hassles and stress of listing.
- Competitive cash offer within 24 hours
Tell them about your house and they’ll carefully evaluate it with local market expertise to provide you with a fair, no-obligation offer. - No Showings – No Hassles
They will buy your house “as-is” so there are no open houses, no weekend showings, and no need to fix it up. - You choose your closing day
Once an offer is made, they can close in days, not months. You pick the date that is best for you. - Pay ALL closing costs
Closing costs can add up, which is why they cover them for you. Absolutely zero extra costs or hidden fees. - Zero fees. Zero commissions.
Since they are buying your house, there is no charge, no fees, and no commissions. The sales price is the amount that goes into your pocket. - They will cover any repairs
Does your house need repairs? They’ll handle them for you. You can even leave behind unwanted items and they will haul them off at no extra charge.
Real Estate Agent Listing
Listing a house with an agent
The amount of time, money, and stress involved with listing your house adds up.
- The months it takes to sell add up
Your home is costing you money the entire time it sits on the market. Some people just can’t wait 90 days to sell their house. - Plenty of showings and disruption to your life
Not only do you have to get your house ready to show, but the number of showings can provide a serious disruption to your life. - It takes forever to close
It takes anywhere from 60 to 90 days+ to close after accepting a buyer’s offer. That’s assuming that their financing doesn’t fall through… - 1-2% in closing costs paid by you, the seller
On average, a seller is responsible for up to 2% of the sales price in the form of closing costs. - Fees and commissions stack up
In addition to closing costs, commissions and fees stack up and reduce how much goes in your pocket at close. On average, 6% in commissions/fees are paid by a seller. - You could be on the hook for repairs
Depending on what pops up during the inspection period, you could be on the hook for repairs that you didn’t know you needed.
In conclusion, while there are certainly some BAD actors in the “we buy houses” industry, it’s unfair to generalize that all companies are dishonest or predatory.
Reputable companies provide a vital service to property owners who are struggling to find a solution to a real estate problem.
