“We Buy Houses:” Is it a Scam?

You don’t need to drive very far at all to catch sight of a “We Buy Houses” sign affixed to telephone poles or street signs. Even though they are common, you may still be wondering just what they are.

We Buy Houses is a slogan used by a company known for offering cash for homes, but it can also be in reference to a homebuyer branch independent of such companies. With a branch, a real estate investor will get a license with “We Buy Houses™” in their area, and these investors are exclusive to each one—there isn’t more than one in any given area.

When you want to sell your house fast and give your contact information to Webuyhouses.com, they will put you in touch with a home investor (similar to https://www.fastcashanyhome.com/) in your area. This is not a franchise and is instead a license through a company to buy a home under their name. There are thousands of cash home buyers that do so under the We Buy Houses banner, but is this type of business model best for you?

How We Buy Homes Works

The process begins by heading to the website designated on the site, which is usually posted by a local house buyer. On the site, you’ll just need to fill out the form with details on your property, including the number of bathrooms and bedrooms, the location, the reason you’re selling, and an estimate of the asking price. You’ll need to submit this as well as your personal information.

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After a few hours, an investor will get in touch with you and set up an appointment to look at your home. While visiting, they will give you an offer for the home or even give you some other options you may not have considered.

Benefits of We Buy Houses

Source: thearchitectsdiary.com

There are many reasons someone might want to sell their property through such means. Maybe you need to sell an inherited home or maybe you’re facing a foreclosure and want to make a short sale. Whatever your reasoning, these investors help sell your home fast. Here are some reasons why you should consider using these services:

1. No Questions Asked

If your home is in disrepair, you are sure to still find someone who wants to buy it. It would most likely be an investor who wants the land the property is on or to flip the home itself. You’ll get cash for the property no matter what.

2. Rental Properties Included

If you have a bad tenant living in a rental property, you may still have the ability to sell it to an investor.

3. Ease of Operation

If you know you need to do expensive repairs to the property before you can sell it traditionally, you may feel like you don’t know where to turn. We Buy Houses will probably be able to help you, as they most likely will try to buy it from you for a low price no matter what condition it is in. Even so, the low price means you won’t have to worry over the burden of that home anymore.

4. Not a Time Waster

If you want to sell your home by yourself, having it “for sale by owner” can be a tricky process. Many people who choose this option do it with the hopes of avoiding paying any real estate commissions and other such costs. Selling your home yourself brings with it the need to complete a lot of work, including taking your own pro-quality photos, being available for showings and knowing how to make sure the potential buyer is qualified for a mortgage. With We Buy Houses, you are free from these stresses and more.

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5. No Need for an Agent

It can be difficult and time-consuming to find a real estate agent worth their salt. We Buy Houses will eliminate the need for any of that, allowing you to make these decisions on your own without all of the headaches of actually flying solo.

6. Foreclosures Accepted

As long as the bank is not in the ownership of the property and the foreclosure isn’t finalized, We Buy Houses will likely still want to make an offer on your home.

7. Saving Grace for Underwater Homes.

Sellers often owe more money on the home than it’s worth. We Buy Houses can talk to your bank and buy your home through a short sale process in cases like this. The investors will come to a price for the home that is less than what you owe on it to help you out.

Drawbacks of We Buy Houses

Source: realtor.com

There are a few things to consider before going this route:

1. Lower Sale Prices

In many home sales, even in instances where you have a real estate agent, you want to sell your home for as much money as possible. Using We Buy Houses doesn’t guarantee the same level of profit that you might see with a real estate agent.

2. No Opportunities for Improvement

Even homes that need repairs will usually come with small, value-adding changes that can make buyers want to pay more money. With We Buy Houses investors, this isn’t an option. They will usually only want to make the changes that make the house more attractive, period.

3. Investors May Take Advantage of Your Stress

The homebuyer will consider you to be a “motivated seller,” marking you as someone enthusiastic and maybe even desperate to sell their house. Of course, there are ethical sellers, but some can take advantage of your desire to get rid of your home quickly.

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Other Considerations

Source: preferredhousebuyers.com

Whether you choose to go with We Buy Houses or not, you’ll need to understand how it all works to make sure it is benefiting you as much as it can when working with direct buying agencies like this. It’s important to not only do your research on the process itself but also do your research on the investors you are thinking about working with. You don’t want to end up in a deal with someone who isn’t actually with the We Buy Houses company. This could result in you getting scammed out of profits that are already going to be lower than they are with a traditional sale.

Keep in Mind

It seems that signs like “we buy houses for cash” or “we buy ugly homes” are seen more and more, but be wary. They are not all necessarily an official part of We Buy Houses. Signs are cheap and easy to print, so do your homeowner before contacting any of these buyers. The real estate industry comes with many unethical investors who will do anything to make a dollar, even at your expense.

Should You Sell to We Buy Houses?

Because We Buy Houses focus only on buying houses, the process is a lot quicker than it is in any traditional route, which comes with more factors at play. Direct homebuyers can help you sell your home fast, no matter what situation you may find yourself in.

So long as you go into it with the understanding that you are not likely to get the market price for your house, and as long as you have already weighed all of your other options, We Buy Houses can definitely be a beneficial way for you to sell your home.