When you consider selling your house, you can do it by either selling the house to “We Buy Houses for Cash” companies or to real estate broker services. You will have to consider the pros and cons of each before making your final decision. It is important to know that, when selling your house to a “We buy Houses” company, they may end up not owning your property as they have potential homeowners who are looking to buy your house.
However, there are different types of “We Buy Houses” companies, and knowing the details of each before selling your house is vital.
The first type of “We Buy Houses” company are called the middlemen. These are the people who often attend seminars and workshops to learn how to buy houses and make profits. They usually engage in buying houses for a period of 2-4 months and then disappear without a trace. They are easily available because they have numerous advertisement flyers to attract clients. If you want to sell your house fast, they will make promises on how you will benefit from working with them only to get nothing in the long run. In most cases, middlemen are there to make money from the sale of your house and hence they are not professional in any way. In fact, you may end up dealing with an unlicensed middleman making it hard for you to make a legal follow up in case you’ve a dispute.
It is also important to know that, since they have not invested a lot of resources and time in their profession, most middlemen are confused and ignorant about property selling and buying. Therefore, working with a middleman can be a waste of time as you may end up not even signing a contract or even selling your house. However, if you are lucky, you can get a successful middleman who can help you when selling your house.
Real estate investment trusts (REITs) are another type of “We Buy Houses” company. They are also known as hedge funds. Unlike middlemen, chances of getting REITs or their sales representatives are very slim. In fact, you may not even be able to get them because they are few. The main objective of REITs is to deal with experienced wholesalers as well as individuals who buy houses at a discounted price and then later sell the houses fast. REIT companies usually buy your house at an average of 85-100% depending with the current market price and the condition of your house. These buyers are highly recommended because they are reliable, professional and offers the best deal to homeowners.
Construction companies or real estate development companies are the third type of “We Buy Houses” company. They are usually skilled and experienced with real estate market. They hence analyse the current market condition and then pay you a premium which is usually discounted. These companies are professional and hence easy to deal with. However, you will never get the full retail price of your house because real estate developers buy and sell real estate property to make profits. They will therefore buy your house at a lower cost to sell it at a profit.