Are We Buy Houses Companies Legitimate?
Do you have a house you are thinking about selling to a “we buy houses” company but you’re wondering if they are really legitimate? You’ve probably seen the ads, or their signs around town, or maybe you came across a website and you just want to know if this is a legitimate business. In this article, we will answer that question, tell you how they work, and give you some things that you should much watch out for when choosing a we buy houses company to buy your home.
First, are we buy houses companies legitimate? Yes! There are many legitimate companies that buy houses, but not all companies are the same! There are many companies that have been around for years and operate a stand-up business, but there are also companies that are just getting started and don’t have the same knowledge and resources, and of course, just like any other business there are some bad apples who are looking to take advantage of people and should be avoided.
How Do We Buy Houses Companies Work?
We buy houses companies are generally real estate investment companies who buy properties directly from sellers. They will then make any necessary repairs to the property and either resell the property or rent the property to a new family.
We buy houses companies are typically purchasing these properties with cash and this allows them to close on the properties very quickly, buy properties that need a lot of repairs, and avoid the need for appraisals and inspections. Most of the time they will not be working with a realtor to purchase the properties thereby allowing the seller to save on commission costs and fees.
The company will make arrangements with you to view the property and discuss your timeline for selling. After viewing the property they will make you an all cash offer for the property and you can choose to accept of decline the offer. If you accept, the file will be processed at a local title company and once they have reviewed everything and cleared the file, you can sign your final paperwork and receive your money from the sale of your house.
For a Full Breakdown of the process from start to finish visit our “How It Works” page.
What To Watch Out For
Please understand this: Not All We Buy Houses companies are the same. Just because someone wrote We Buy Houses on a sign or made a Craigslist ad claiming to buy houses does not mean that they are a legitimate company or that you should do business with them.
How long have they been in business? How much experience do they have over that time? When you are selling your house you probably don’t want to work with someone who is brand new or is just dabbling in the business.
How did you find them? Were you searching for them and you found them on a professional well-polished website or did someone just call you out of the blue and say they want to buy your house? If their entire marketing budget is scribbling on a handwritten sign on the side of the road, that shouldn’t instill a lot of confidence in their business.
Are you able to research them online? Can you find good reviews? Do they have other sites such as Facebook, Youtube, etc? There are not too many legitimate companies these days that do not have any online presence.
Are they putting a lot of pressure on you to sign the contract before you are ready? Don’t get me wrong, there needs to be some paperwork, but you should be signing this when you are ready and not because they are putting extra pressure on you to sign right now. Are they using standard forms such as the ones created by the Texas Real Estate Commission?
My #1 Rule – Go with your gut. When you met with them, did they appear professional? Were they able to answer your questions regarding the sales process, who would be handling what, and timelines for completion based on your situation? Or are they being very vague and stumbling through their answers? Do they look like they can pay your cash for your house or do they look like they may not have $20 in their pocket and there is no way they have hundreds of thousands in the bank? Are they continually telling you that they have to “ask their partners” or “check with their boss”? If they going to have to ask someone else, then why are you talking to them and not that person?
“I am incredibly impressed with Nick’s knowledge in the buying and selling process. He will answer your questions thoroughly and will make sure that you have a clear understanding of the process. In working with Nick, I know he is honest and gets the job done fast.”
Cynthia Jernigan
Who Should Use A We Buy Houses Company
Here at Sell My San Antonio House, we have bought hundreds of houses from people with all different kinds of reasons for selling, but with that experience comes the knowledge of why the majority of our clients chose to sell to a we buy houses company.
Inherited properties – When someone passes away, it can be a very difficult time for the family, and part of settling the estate is selling the home. Many times the heirs do not need the home and would prefer to sell it quickly and easily without any hassle.
Old rental properties – These typically come in one of two forms either the owner has had them for a while and now no longer wants to be a landlord so they would like to sell the property to us or they are having some difficulty with tenants and would like us to buy the property and take over the problem.
Older and looking to move – Many times when people have owned their homes for a long time and now they are looking to downsize or move to a place that requires less upkeep, they prefer to sell the property to us instead of making any repairs or updating to the house.
Major repairs – When a property needs a substantial amount of repairs it can often be very difficult to sell. The owners do not want to put thousands of dollars into the property and buyers can’t get a loan to buy it because of its condition.
Moving – Moving can be stressful enough and if you need or want to make sure that your current property is sold by the time you need to relocate then we can help make that happen.
Behind on payments/taxes – When a person has fallen behind and is at risk of losing the home, they can often find themselves with a very short timeframe to work with and a traditional sale will not happen in time.
Avoid the Headache and Hassle – We buy several houses every year from people who want to avoid the cleaning, fixing, listing, etc that comes with a traditional sale. We meet with them and work out a win-win situation for both of us.