Paying cash for a home isn’t uncommon. People who don’t require any financing do it all the time. But it’s not all as it seems. There are plenty of these ‘cash for homes’ deals that need to be avoided.
If someone needs to sell their home due to financial problems, they can find themselves in an even worse situation when dealing with someone who only has their own profits in mind.
WE PAY CASH!
We have all seen these signs. Hand-written signs posted around your neighborhood claiming to buy any house in any condition for cash. This can seem very tempting for someone in dire straits.
While they are nothing new, they do seem to be on the rise. But they are not buying the home to live in it, they are investing. But as a homeowner, you are not going to get the best deal.
They are going to give it a quick facelift and then turn it back out to the market. At a huge profit. Flipping houses has become so popular, there are websites and television programs all dedicated to doing so.
It can seem like an appealing and easy way to make a fast buck. And, in many cases, it is. It’s an easier process for the homeowner, as well, to avoid a lot of paperwork, waiting, and they get their cash all at once.
Who Is Buying?
People offering fast cash for houses are from many walks. Individuals or groups of people looking to invest in a property.
Buy and Hold
Some of them want to buy the home, fix it or convert it, then rent it out for a steady bit of extra income. This can be a small home or several homes, or even a large home they cut up into smaller apartments.
As a homeowner, you will likely get a better price from someone who is looking to buy the property and hold on to it. It’s in their best interest to get the property, so they are more willing to pay a bit more.
House flippers are all the rage. People come in and scoop up the home for a song, usually fondling sellers that are in need of some fast cash. Then they renovate it in a few days or weeks and flip it back to the market for a big profit.
Unless people know what they are getting into, it can be a huge loss. If they are unable to resell the home quickly, they are losing money the longer it sits and they are often unable to buy another until they get the money for that one.
An ibuyer is an organization that has the means to buy homes using technology. They use that technology to decide whether your home is worth buying and how easy it will be to sell.
They make an offer and give you cash for your home. It will then sell the house and attempt to make a profit. These ibuyers often don’t just randomly buy anything on the market, and instead, buy homes that are in great condition.
If you are a homeowner looking for a fast sale, this might be a great way for you to avoid all the steps and hassles that come with the traditional way of selling a home.
But, it’s best to not go in blindly, as there are plenty of these people more than happy to scam you. Choose a reputable organization that has a history and good reputation.