You’ve seen the commercials and online ads about companies that want to buy your home for cash. No doubt you’re curious about how these home sales happen, what’s involved, and whether or not it might be a good option for you. You’re right—you should do your research and learn more.
What Home Buying Companies Are
The first thing to know is that cash home buying companies are not real estate agents or brokers. They aren’t in the business of putting your house on the market and helping other people buy it. Their business goals and their processes are completely different.
Cash home buying companies are property investors. They buy homes directly from the owners, with no intermediaries involved. They then take the homes they buy, fix them up if necessary, and resell them or rent them.
How the Home Buying Process Works
The process of selling to a home buying company is simple. The homeowner contacts the company, either by phone or email, with general information about the house, such as size, location, and condition. A representative from the company may visit or meet with you to confirm the information, but contracts are signed at this point. Within 24 hours, you’ll have a cash offer on your home. Since the home buying company doesn’t need to get financing to buy your home, you can set the closing date quickly, often within a week or so.
Advantages to the Seller
Selling to a cash buyer has several advantages over the traditional way. First, you don’t have to make any repairs or pay out-of-pocket to fix it up. Cash home buying companies will purchase your home “as-is.”
Then, at closing, you are not charged commissions or closing costs. In a traditional real estate deal, your costs at closing can be 8 to 10% of your sales price. With a cash sale to a home buying company, your costs are zero.
Cash home buying companies seem like relative newcomers to the home sales industry, but they’re actually experienced investors who offer homeowners an alternative to selling their homes. If you have a home that needs extensive repairs, or you need to sell in a hurry, a cash home buying company may be right for you.
Want to know more about how to sell your house to a cash home buying company in Utah? Click here to find out.