We Buy Houses: How Does It Work?

Experts predict that housing prices will fall by at least 5% in 2023. They also expect the market to change from a seller’s to a buyer’s market.

So what does this information mean for homeowners who want to sell? A buyer’s market means that selling your home might be more challenging.

But you can always turn to a “we buy houses” company if you want to sell. 

Of course, it might be helpful to learn how this process works before contacting a company. Here is a guide that explains how this works.

What “We Buy Houses” Companies Do

Companies that advertise “We Buy Houses” are in the real estate industry. They might be landlords who purchase properties for rental purposes. Some might buy houses to flip them.

These companies have one goal: to make money from real estate. Of course, the ways they make money vary. But these companies will purchase any properties.

Thus, many advertise with slogans such as “We Buy Ugly Houses.” When you see that a company buys ugly houses, you won’t have to worry about your home condition.

This slogan means that they won’t turn your home purchase down for looks. Instead, they’ll buy it as-is. Then, they’ll invest money into the property and sell or rent it. 

How to Get an Offer

If you’re interested in selling a home as-is to a company like this, you can. Fortunately, it’s a simple process that begins with requesting an offer.

You can request an offer online or over the phone. The house buyer needs the property address to complete this request. After giving them your address, they’ll give you an offer.

Home selling is simple with this method. It’s also fast.

After requesting an offer, the buyer researches the property. Within a few days, you’ll have an offer. You can review it and think it over before responding. 

You can decline the offer if you feel it’s too low. On the flip side, you can accept it. If you agree to it, you have a guaranteed sale. 

The house buyer pays cash for the deal. So it will go through quickly and without the risk of falling through.

How They Calculate Offers

Most home sellers wonder how these companies calculate their offers. The truth is they use consider several factors in their quotes. 

The first is the going rate for homes. For example, how much are similar houses selling for today? Is it a buyer’s or seller’s market?

Secondly, cash buyers consider the home’s condition. For example, will they have to remodel the house or update it? If so, how much will the renovations cost?

Finally, they’ll consider the profit. For example, if they want to flip the house, how much will they ask for it? They can decide how much to offer when they know this amount and the repair costs.

Cash house buyers always consider their profit margins when offering to buy homes. They’re in the real estate business and need to make money. So they will offer only a portion of your home’s value. 

Benefits for Sellers

Even though you won’t receive your home’s full value, selling this way offers benefits:

No Commissions

The average price homeowners pay to real estate agents is 5% to 6%. This commission rate amounts to a substantial amount of money when selling a house.

Learning how to sell a home without paying the commission is wise. After all, you’ll get to keep all the money instead of sharing it with an agent. This method is one of the best ways to avoid paying commissions. 

Additionally, you won’t encounter any other fees. Most homeowners pay various closing costs when selling their houses. 

Many homeowners also pay for updates, repairs, and modernizations. These are all costs of selling a house through a traditional method. 

No Contingencies

You won’t encounter other expenses when selling to a cash buyer. They don’t include contingencies, which are conditions you receive in a traditional sale.

The downside to contingencies is they cost money. They can also cause home sales to fall through in some cases. You won’t have these when selling to a cash buyer.

Guaranteed Sale

Cash home sales are easier and have fewer risks. For example, a traditional sale might fall through if the appraisal needs to be higher. A cash home sale won’t fall through for this reason or others.

Instead, it’s a guaranteed sale. So you can count on it going through.

Faster

Selling a house to a cash buyer is also faster than other methods. Cash buyers skip numerous steps that traditional buyers use. For example, a cash buyer might skip the title work steps. 

Thus, fewer steps result in faster closings. 

Length of the Process

You can see the steps involved with a cash home sale. But how long does the process take? The process length depends.

If you want to sell immediately and move out in a week, they can work it out to suit your needs.

However, some people need more time. If this is the case, they’ll take their time to extend the closing date.

In most cases, you can expect to close on a cash home sale within two to three weeks. Thus, this is the way to go if you need an instant sale that is guaranteed to close.

Ready to Sell?

When you own a house, you can sell it however you’d like. But you should always consider your options first. Of course, you should also consider the pros and cons of your options.

If you need to sell quickly and want to avoid investing in your house, sell it to a company that advertises “We Buy Houses.” You’ll have an offer quickly and a guaranteed sale.

Contact us at Lisa Buys Austin Houses if you’re ready to sell. We can give you an offer and close the deal as fast as 7 days.