Are house buying companies legit?
Cash house buyers are a dime a dozen these days. Many Real estate investors are advertising they buy houses for cash, and our mailboxes are often flooded with handwritten real estate letters and other flyers that communicate this message. I’m sure you are asking yourself if this is legit and what does this mean?
A cash house buyer is someone (like us!) who purchases your property with no financing condition or building inspection condition. Why is this important? This is important because often times, when a buyer submits an offer or signs an agreement of purchase and sale, there is typically a financing clause or a building inspection clause. This means, that the agreement is only valid if they buyer can obtain the funds and financing necessary through a lender to fulfill the purchase and/or have a building inspector perform a thorough investigation on the property so that all the existing defects are known.
This is important to understand when you want to sell your house for a number of reasons. Firstly, if there is a financing clause in the offer and you have a specific date the house needs to be sold on, if the financing conditions falls through you will need to find a buyer in time to make sure that you can sell your house on the specific date that you’ve intended. With a cash offer and no financing condition, you can be rest assured that the buyer cant back out of the sale and is required to close on the date in the agreement of purchase and sale. Secondly, if you are trying to sell your house and it is badly damaged, requires a lot of renovations or maintenance and the buyer has a condition in the agreement of purchase and sale that is conditional on a building inspection – this gives the buyer leverage to back out of the deal as a result of the damage. With cash house buyers, we typically will include a condition in the agreement of purchase and sale that says “as-is, where is” which means, we are taking the property in as-is condition, no building inspection.
So is a cash house buyer right for me?
Well, that depends on your circumstances. A cash house buyer is a fantastic solution for someone who wants to sell their house and has a very unique situation and requires specific terms and conditions for peace of mind and to have some control over the transaction. Sellers may also prefer to sell their homes privately without public advertising and marketing through a real estate agent.
If you want to sell your house fast, an experienced cash house buyer will have systems already established within their network to make this happen. When choosing a house buyer that can close on your house quickly, make sure you ask questions to determine if they would be a good fit for you.
For more information about our process, fill out our contact form to set up a call and see if we would be a good fit for your needs!