Th Ugly Truth About "We Buy Houses" Companies

We’ve all seen those types of signs plastered on billboards, community bulletin boards, and yard signs littered around street corners, and telephone poles.

And then there are the postcards and handwritten notes on yellow paper, aka yellow letters in the industry, that show up in your mailbox or tucked in the front door of your house. Which sounds kind of weird, doesn’t it? Getting a personal note from a stranger that is offering to buy your house for cash?

The signs. The letters. The postcard. They all have a buyer behind them. They all have an investor, flipper or wholesaler person or company that really is interested in buying someone’s house. But for the right price, their price.

These are investors who are looking to flip your house for a profit. Housing flipping has become a lucrative business model for several real estate investors.

Unfortunately, while these companies fill a need for certain sellers, they are not always the best solution for homeowners who want to sell.

if you consider using such a company, it is worth your time to learn a little more about your options. You may find that you can get a better price by working with a local real estate agent.

Keep in mind that we buy houses flipping companies are after one thing – buying your home for dirt cheap! Depending on how desperate you are to sell, they will often offer you anywhere from 50-70 percent of the actual value.

By definition, house flipping is where a real estate investor purchases a property for less than its value, makes any necessary repairs and updates, and then sells the home for a profit, typically within a short period of time.

Here are some things you need to consider:

1. You Will Make Less Money on The Sale Than You Would be Working With a Realtor.

When you sell your house to a we buy houses company, you’ll get far less money.

These companies will be making a low offer to the actual market value of your home.

Even without paying a real estate commission, you will make far less than if you were to go on the open market.

When you hire a real estate agent, they work to make you as much money as possible from your sale. The Realtor takes a percentage of the sale price as financial compensation, so they are motivated to fetch the best price.

If a real estate agent believes that they can sell your home, there is a good chance that you can make more than you would if you sell to a house flipping company.

In fact,we will go out on a limb as say you are GUARANTEED to get far more money when you list your home with a real estate agent. Selling to a real estate investor will almost always end up netting you less money!

Again you need to keep in mind that house flipping companies are buying your home for one reason – TO MAKE MONEY! They are not going to pay you anywhere close to the actual fair market value of your home.

We are equipped to get you much more than a “fair price,” as investors like to call it.

2. You Don’t Have The Option of Improving The Home to Improve The Selling Price.

Even homes that are in relatively bad shape can often be improved to attract better-quality buyers. In fact, that is probably what the house flipping company is planning on doing with your home.

They will buy it, fix it up, sell it and make a nice profit. When you sell with a real estate agent, you get to make the improvements and reap the rewards.

An outstanding real estate agent will be able to guide you on the best improvements for increasing home value. If you don’t have the money yourself, it could be wise to borrow the money from someone else so that you end up putting the additional profit in YOUR pocket!

You can do things to a home that does not cost much money that many owners don’t realize.

3. You Give up Control.

A house flipping company is focused on finding sellers who are desperate or don’t care anymore. If you care and are not desperate – you just want to sell the house – there is no reason to work with a company that will rob you of all opportunities to get more from your sale.

Working with your Realtor, you can determine exactly what you need to do to get a good price for the home and often make a lot more money at the end of the day. We buy houses companies will be giving you cash for your house. In return, they will expect a significant discount.

When the real estate market favors sellers, it would be foolish to let a good offer go for a lowball offer. You might be shocked about your home’s market value even in its poor condition.

4. We Buy Houses Companies Do Not Have Your Best Interests in Mind.

House flipping companies are not necessarily bad. They fill a niche and are capable of helping homeowners who have no other options.

For those with no options, getting paid to get out from under the home is an opportunity worth taking. But if you think that maybe you could get more for the home, a house flipping company is not the partner you want.

A real estate agent is focused on your best interests. Your satisfaction is paramount because reputation is everything for a Realtor. Your agent will give you insight into the different options available to you and help you every step of the way as you go through the sales process.