If a seller decided to sell his home for cash, it was assumed that it was a distressed property, perhaps neglected or foreclosed, and that the seller was unable to make repairs. While this is still true for many homes that are being sold for cash, reviews for We Buy Houses for Cash companies suggest that cash sales have developed a scope far beyond the distressed homes market. A competitive housing environment, advancement in technology, and instant sale platforms have made it very lucrative to sell a property for cash. Sellers now have greater expectations for convenience, speed, and certainty, especially with a certain type of cash buyers offering prices that are closer to the market value than is the norm. So, what can be understood from all this? Cash is not just the result of a housing craze but is here to stay. Read on to understand more about this up-and-coming real estate market.
What do you mean by selling your house for cash?
Ordinarily, if someone wants to sell their house, they would need to list it and market it. However, most individual buyers will not have the money to purchase a home and will be using a mortgage to purchase the property. On the other hand, if you choose to sell your house for cash, it means that your buyer will be paying for the home in cash upfront. Such buyers will usually be investors or cash home-buying companies who can make repairs and renovations and put up the property for sale again. The downside is that you will rarely get the market value for your home if you choose to sell for cash. However, recent market trends indicate that many cash buyers are now offering prices that are much closer to the market value than before.
Where can you get a cash offer?
According to Houzeo reviews, an MLS listing will get you the maximum exposure to cash buyers. Here are a few common types of cash buyers available in the real estate market today:
Online Home Sale Platforms – There are several online home sales platforms that will connect you to a buyer who will pay in cash for your home. Most of them are easy to use and will help you put up your house on the market in a matter of minutes. Some of the most popular online home sales platforms in the country are Zillow, Trulia, Realtor.com, Home Finder, and Redfin among others.
iBuyers – Instant Buyers or iBuyers are somewhat similar to house flippers. However, unlike the latter, they primarily purchase properties online, often sight-unseen. They target a house that is in good condition and within a price range of $100,000 to $600,000. iBuyers also tend to buy a higher number of houses than ordinary house flippers. They tend to focus on seller convenience and charge a service fee that is usually 5% of the final sales price. Sellers can expect to receive a cash offer within 24 to 48 hours and can close in as little as 10 days once the offer is accepted. Some of the top iBuyers include Opendoor, Redfin Now, and Offerpad.
Buy-and-Hold Investors – These are usually real estate beginners or large Wall Street-backed institutions and have a larger capital than the typical buyer. They buy up properties to rent them out to generate a strong cash flow. If your property is located in an area that has the possibility of attracting tenants like near a university campus or business building, chances are high that you will receive cash offers from buy-and-hold investors.
House Flippers – They are companies that buy properties in cash but at a sharply discounted rate. They later repair and renovate the property and sell it for a profit. One of the most popular house flippers in the country is the We Buy Ugly Houses franchise. House flippers are a good option for those sellers who cannot afford any repairs and need ready cash. They are also a good bet for properties that are very old, require expensive remedies, and even code violations.
Individual Buyers – While they are rare, you do come across the occasional creative buyer willing to break into his retirement savings for cash, or the extreme saver who prefers to pay for everything in cash. According to several reviews for We Buy Houses for Cash Companies, such buyers are also on the increase, contributing to the boost in cash sales in real estate.
Which are some of the top We Buy Houses for Cash Companies?
Here are some of America’s top We Buy Houses for Cash companies, based on Houzeo reviews:
Houzeo – An flat fee MLS listing goes a long way in ensuring that you get the highest cash offer for your property. Houzeo is a popular platform for sellers looking to tap into the MLS for a small flat fee. They have no hidden charges and your listing will also be syndicated to other online home sale platforms like Zillow, Trulia, Redfin, and Realtor.com. Their cutting-edge technology will also ensure a hassle-free listing since everything is automated and can be done online.
Opendoor.com – This is a real estate investment firm and has been rated as the largest iBuyer in the country with a presence in 45 markets. You can simply upload some basic information about your property on their website. Once they evaluate your home and if it meets their criteria, you can expect a cash offer, often within 24 hours. They charge a 5% service fee and deductions for repairs and closing. You can check out Opendoor reviews for further evaluation.
We Buy Ugly Houses – No matter what condition your house might be in, We Buy Ugly Houses will offer you a cash deal. The downside is that they operate based on the 70% rule – they will not offer an amount higher than 70% of the value of the property after repairs and renovations. Offerpad – An iBuyer with experienced in-house market specialists, Offerpad has been known to close a house sale in as little as 10 days. However, they also offer extended stay options for sellers who require it.