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If you’re selling your house and are looking for a great price with quick turnaround, you’ve probably heard about cash buyers. These investors or investment companies are easy to find and often even reach out to Charlotte homeowners who put their house on the market. The big question is, are We Buy Houses companies legit?
What happens when you sell to an investor
These companies look for people in Charlotte with distressed homes or burdensome houses. They want homeowners who are willing to sell their house for less than market value. Once a seller shows interest in the property, the investor will find a time that they can see the house. They’ll then estimate the value of the home and write up a no-obligation cash offer.
The buyer will draft a contract that doesn’t involve any real estate commissions or hidden fees. Part of the point here is that they take out the hassle and to get the deal done fast. The whole process can be expedited by foregoing a real estate inspection or a home appraisal. This is how the home can get to closing in as little as seven days.
When you sell your home to a we buy houses company, you’re essentially selling to an investor. They’ll buy your home as-is and for less than market value. After that, they’ll make any necessary repairs and then sell the house for a markup. The profit from that markup is how they make their money.
There’s a tradeoff here. The homeowner in Charlotte, NC gets to sell their home fast and have the cash in their pocket. The investor gets to make a profit off of putting in the work and understanding the real estate market.
Quick closing and motivated sellers
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A We Buy Houses company in Charlotte is looking for a seller who is motivated. This could be for any number of reasons, from the loss of a loved one to divorce to job loss. The economy is constantly going up and down, and the real estate market has a lot of wavering needs. Knowing all of that information is how a cash buyer is able to understand who is ready to sell and how fast.
When someone inherits a house in Charlotte, they might not want to keep it. A change in job situation and the need to move fast can prompt a homeowner to want to sell a house fast. It could be none of the above as well. Sometimes people just don’t want the hassle of a traditional real estate sale.
Staying away from We Buy Houses scams
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It’s important here to understand that all of these are legitimate reasons to sell a house fast. We Buy Houses scams take advantage of these reasons, using people who are in a vulnerable situation. Most of these companies are above board, but unfortunately not everyone is.
The best way to steer clear of a we buy houses scam is to do your research. Look up the person or the company online thoroughly and find out if there are any red flags. You want to see a robust web presence with lots of information online about who they are.
Good real estate investors have a website and client reviews. You can also look them up on the Better Business Bureau website.
Buying a home for cash
A great question for home sellers is this – how can a real estate investor have the kind of cash to buy a house without a bank loan? The answer is that most of these companies are in the business of flipping houses. They started off small or with an investment from some other business. Then they built their business over time.
This is a business model that works for lots of people. Though a home is the largest purchase that most people make, for an investor this is just what they do. It’s all about building up the capital and making smart business decisions. Sometimes these companies rely on an angel investor to infuse cash into the business. Most often, they just go there through hard work.
Understanding that a cash home buyer got there honestly is an important part of trusting them with the sale of your house. A trustworthy home buying company has the cash sitting in their bank account, ready to buy your home. They’ll be able to prove this during the process by providing you with a proof of funds document from the bank.
Traditional sale process
The traditional home sale process usually involves a single buyer connecting with a single seller via a real estate agent. If a house is in poor condition or needs significant repair costs invested before it’s livable, that can scare off prospective buyers.
The open market is not easy. Oftentimes, the seller ends up having to pay closing costs. Even if they get market value and are working with a good real estate agent, they can still end up getting a raw deal.
Real estate agent take a hefty commission for their expertise and the effort they put into selling a house. A clever real estate agent can certainly help get the fair market value for home sellers, but the real estate industry isn’t made for homeowners. The open market is geared towards making money for the agents and companies involved.
A homeowner can often end up getting more money when they go with an all cash offer from a buy houses investor.
Home repairs and home buyers
Significant repairs don’t scare off houses investor and all cash buyers. Local investors in Charlotte can help homeowners sell fast and get to that closing date. The home selling process with a buy houses team is totally different and can save thousands for the homeowner.
Buy houses legitimate cash buyers look for homes that need repairs. These houses sell fast because they give a cash buyer the opportunity to get more money in the long run. A buy houses investor will take that distressed property and put the work in to fix it. Then they’ll use clever real estate tactics to stage and sell the home, making more money even though they had to pay cash to start.
Buy houses investors look for property owners facing foreclosure or who have significant repair costs because these are things they can address. Even given the closing costs, they can still turn enough profit to stay in business.
Ugly houses can still be great houses! The local market in Charlotte is perfect for buy houses companies and real estate ages alike. It’s possible to get fair market value even if your home is less than perfect.
Even if you’re selling a rental property, you can still work with a buy houses company. Rental income is always a boost for a buy houses investor.
Buy houses reviews will tell you that these companies buy all kinds of properties for cash. A rental property is a great investment that can generate income in the long term. That’s even true if it’s a rental house that needs significant repairs. A houses investor is often willing to take on any kind of property.
Selling fast isn’t usually a scam
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It can sound like it’s too good to be true when a seller comes to you to offer you fast cash for your house. There are times when scammers try to take advantage of motivated sellers with burdensome homes, but it’s easy to be a smart seller in this situation.
If you see a “Sell Your House Fast” sign or a “We Buy Houses” sign, always look for a website or a company name on the sign. Working with a company that is not just an individual will help you to avoid scams. When a sign only has a phone number listed, there’s a better than even chance that it’s a scam.
Find a legit cash buyer
The best way to avoid a we buy houses scam is to look for the pressured sale. If they are trying to push you hard into signing a contract, then it’s time for you to go elsewhere. There are lots of options. A fast closing is certainly a good thing for everyone, but you should always feel comfortable with ever step along the way.
An honest real estate investor will never ask you for money upfront of any kind. Not a dime should exchange hands before closing. There are still closing costs associated with a cash sale, but they don’t come up until the very end and should come out of the selling price.
Never, ever give money to someone who wants to buy your house. This is the number one red flag, and it’s a great way to get scammed.
Buy houses companies area legitimate way for home sellers to avoid real estate agents and get the cash that they need.