Over the past few years, companies that buy houses have grown significantly in popularity. While selling a house on the open market might take anywhere between three months and a year, several companies that buy houses claim that they can buy your home in as little as a week. So, how do they operate, how much do they pay, and are there any associated risks that you should be mindful of? Let’s find out:
How Do House Buying Companies Operate?
Companies that buy houses claim that they can purchase your house considerably faster than selling it on the open market. A reputable house buying company can guarantee your property’s sale on the day of your choice. They directly buy your property with their own funds. Since they don’t need a mortgage, they have more flexibility in deciding how quickly to buy your house.
Most legitimate house buying companies follow a similar procedure that is:
Step 1: They Make A Tentative Offer
A house buying company will ask you a few simple questions regarding the property you are willing to sell when you initially get in touch with them. They will then visit and conduct some simple desk research before returning to you with a range of possible prices for the home. Typically, you will get this introductory offer within a few hours of making your initial inquiry.
Step 2: They Give A Formal Offer
The house buying company will ask a nearby, independent estate agent to do a formal valuation of your property if you are satisfied with the tentative offer you get and wish to move forward with receiving a formal offer for your house. This amount will only change during the sale process if a structural survey reveals a problem that would significantly reduce the property’s value. However, this is very uncommon, and the offer from a house buying company will be free of charge and obligations, allowing you to back out at any time.
Step 3: They Give You The Liberty To Pick A Date For The Deal
You should be prompted to select your completion date at this time if you accept the formal offer and want to move on. This might happen as soon as next week or at any moment in the following few months. However, extreme caution should be exercised when dealing with companies that cannot commit to a date because it is unlikely they would purchase your property outright.
Step 4: You Finalize A Deal, And Money Is Credited To Your Account
Your deal will be finished on the date you specified for completion, and the funds will be credited into your bank account.
How Much Do These House Buying Companies Offer?
Any house buying company that is directly purchasing your property will be upfront and honest about their ability to pay from the beginning. However, due to the costs involved in buying your house, companies that buy houses cannot purchase them for the full market value. The offer they make you should be the sum you receive on completion day, but they also don’t charge you any additional or service charges.
However, any company directly purchasing your property should pay between 80% and 90% of the entire market value. At first look, that could appear to be a big saving, but for many people, the quickness and assurance it offers make it an appealing option. However, not having to pay for estate agents or legal fees will also save you significant time and money.
What Is The Timeframe For Selling Your House To These Companies?
Whether the company is buying your property directly or serving as a broker will determine this. You will need to pick a day on which the deal closes if a company is buying your house directly. If necessary, the company should be able to buy your property in just one week. There will be no promises regarding timeframes if the company you are employing is a middleman looking to connect you with an investor, and it may take as long as selling on the open market.
Are There Any Risks Associated With Selling My House To These Companies?
When selling to a house buying company, a major risk is that they are not sincere and can withdraw their offer before the deal is finalized. And this is a normal practice when working with a broker rather than a direct home buyer.
The amount a broker gives you initially is an estimate rather than an offer because they won’t be purchasing your house directly. Instead, they frequently hold you down with an optional contract and then drastically lower their price after finding a buyer for you.
However, a broker can be identified because they frequently make an unsupported claim that they can pay 90% or more of the market value. Some will even promise to sell you quickly and to pay you 100% of the market price. Unfortunately, this isn’t even possible. Selling on the open market is the best option if you want to receive the full market value. Homeowners seeking a simple, quick, and effective way to sell their properties should consider We Buy Houses in Atlanta.
Conclusion
Companies that buy houses can genuinely offer a quick, guaranteed, and hassle-free alternative to the open market as long as the company you choose purchases properties with its own money. However, you should be wary of any company that does not directly and personally purchase properties because they will not be able to make any promises regarding pricing or timeliness. Also, be suspicious of any company that claims to be regulated because the house purchasing sector is still unregulated.
