Image by Valentina Locatelli via Unsplash
In the last decade, there’s been a distinct move from traditional real estate transactions, which were done through real estate agents and with the help of mortgage companies, to faster transactions that cut out the middleman. Cash home buyers and we buy houses Charlotte companies are more popular than ever before.
Before you sell your property to a “we buy houses” company, you need to learn what you’re getting into. Educating yourself on the motivations behind these kinds of companies will help you to see if this is right for you.
How to spot a “We Buy Houses” scam
Image by Dillon Shook via Unsplash
Be warned – there are lots of scams out there. No one is here to alarm you with that information, but it’s worth it to be on your guard with any deal that sounds too good to be true.
Here are some red flags to look out for when you’re thinking about selling to a cash buyer:
- Asking for payment from you
This is the number one, biggest red flag to look out for. If someone asks you for money upfront to buy your home, run the other way. The only money that should exchange hands is at the closing table, and then it should only move in one direction – yours.
- Little or no online presence
Do a web search for the person who you’re potentially selling to. A reputable cash buyer will almost always have an online presence and reviews. Look them up with the Better Business Bureau. Do some investigative work on your cash buyer.
- Moving too fast or too slow
A reputable cash buyer in Charlotte won’t push you too hard to get a fast sale, and they won’t drag the process out either. If they need extra time to get paperwork done or for whatever reason, they should communicate that clearly with you.
- Not understanding the process
An experienced cash buyer will know the process inside and out. If it seems like the person offering you cash for your home doesn’t know what they’re doing, you want to go the other way.
Trust your instincts
Selling a house is a huge life change. Don’t do it lightly or with just any seller. Trust your instincts and remember that there are lots of cash buyers in Charlotte, North Carolina. No potential deal is worth ignoring red flags.
Why are there more cash buyers now than before?
Image by Towfiqu barbhuiya via Unsplash
Twenty years ago, cash home offers were associated with either super wealth or shady deals. That’s no longer the case, in part because there are so many more cash home buyers out there.
HGTV shows like Fixer Upper made flipping houses seem much more palatable to everyday people. A rash of TV shows with heartfelt renovation companies helping families buy burdensome houses and turn them into dream homes made home investors less scary. Who could say no to Joanna Gaines and her shiplap?
It starts with the housing bubble
There’s more to it than that, though. In the wake of the housing bubble in the early 2000’s, the real estate industry saw a dramatic shift. During the rise of that bubble, home investors discovered the ability to raise a lot of capital in a short amount of time by flipping properties.
The move from bad mortgages
Image by Austin Distel via Unsplash
The housing bubble happened because of subprime mortgages and overvalued homes whose sale value couldn’t keep up with balloon payments. Homes were built incredibly quickly, especially in hot markets like Charlotte, North Carolina.
This all happened because of changes in federal laws governing mortgages that changed the ability of borrowers to get cheap loans. Fannie Mae and Freddie Mac, federal mortgage lenders, gave out a lot of risky mortgages throughout the early aughts. The housing bubble was a significant contributor to the Great Recession.
When you think of “we buy houses” companies in Charlotte, you can almost certainly trace your first memories of them to the time just after the housing bubble burst in 2007. Homeowners with bad mortgages were desperate to get out from under a property address that they couldn’t afford and that was worth less than what they owed.
Aren’t cash offers for neglected homes and foreclosures?
Image by Alexandra Gorn via Unsplash
In the past, cash home sales were often associated with homes in disrepair that needed lots of work. Homeowners needed to sell their house fast and reduce closing costs to pay off bills. A hassle-free sale is naturally attractive to someone who needs to sell burdensome houses fast.
Facing foreclosure is difficult, and selling a house that’s left unchanged is often the best solution for any family. Getting a house fast Charlotte sale that doesn’t have a lot of agent fees and realtor commissions isn’t only good for foreclosure, though.
Investors who buy houses Charlotte will help you sell your house for a fair price whether it’s neglected or well maintained. There are so many reasons that people want to buy houses in Charlotte for a fair cash offer.
Image by Freestocks via Unsplash
Think about it this way – a fair all cash offer in Charlotte, NC is easier and faster when the home is in good condition. Charlotte cash home buyers can turn the home over more quickly if they don’t have to go through the hassle of fixing it. It’s possible they’ll be able to sell your house as is in Charlotte, NC without having to pour a ton of investment capital into it.
Essentially, home buyers in Charlotte are interested in buying properties of all kinds. The surrounding area of Mecklenburg County is constantly growing. Growth in general is fast in the Queen City.
What is as-is condition?
Image by Alvin Engler via Unsplash
During typical home sales, house buyers in Charlotte, NC attend open houses and work with a real estate agent to find a closing date on the property address.
The higher price that homebuyers in Charlotte often include strict must-dos such as roof repairs, landscaping, home upgrades, or in general addressing existing issues. Typically when you sell your house, the buyer gets a home inspection to uncover issues. Any property address in Charlotte can face weather damage or existing issues.
Expensive repairs eat into the fair offer on the house in Charlotte.
A Charlotte house in as-is condition just means that the home is left unchanged. Whatever existing problems there might be with the home, the buyer takes over the property address without changes. There could be problems, but the homeowner has no obligation whatsoever to make repairs in an as-is sale for homes in Charlotte.
How investment buyers in Charlotte, NC make money
Image by Landon Martin via Unsplash
When a house goes into foreclosure, the price drops dramatically. Investors can take advantage of that drop in price to snatch up a home and get a great deal. They’ll have relationships that allow the deal to close quickly.
The typical expenses that go with the sale of a house in Charlotte can almost always be negotiated. Whether it’s lawyer fees or repair costs, seasoned real estate investors in Charlotte, NC will know how to eliminate hidden fees for a quick ell.
Image by Anna Sullivan via Unsplash
The typical homeowner requests that they get through the process to sell my house fast and then get out of it. With their expertise and experience, working home investors are sometimes helping homeowners turn over their house fast in Charlotte, NC.
Buying houses in Charlotte, NC is about getting a good pay day, but it’s also about doing the right thing.
Why real estate investors want to sell your house fast
Image by Yann Maignan via Unsplash
The key to making money for investors is that quick turnaround. Every day that an investment property sits empty is a day that they are losing money. Sometimes neglected homes and foreclosures are the way to make fast money.
Homes that are not in foreclosure or in need of repair can also be attractive to investors. They won’t make as much money as they will on the other kinds of homes, by have a fast turnaround on resale.
Being able to put money down on the house means the price is lower than with a mortgage deal. That savings is how the investor is able to turn a profit on an as is home.
Know the home buying process
Image by Precondo CA via Unsplash
You need to know the entire process of selling an unwanted property before you can determine if it’s the best solution for you. There are lots of we buy houses in Charlotte companies, but the selling process is always basically the same.
- Agree on a competitive price
- A home inspection may or may not be part of the process for home buyers in Charlotte
- Seller offers a “proof of funds” notice from their bank, showing they have the funds
- Both parties work with a settlement agent to finalize the home sale
- Home seller ways away with an earnest money check for the amount
- Cash home buyer takes possession of the house on an agreed upon date
These steps are standard for houses in Charlotte that use the short form process of selling a house for a cash offer.
Make a smart decision
Image by Drew Coffman via Unsplash
The bottom line is that the only person who can make the final decision to sell a house in Charlotte is the homeowner. In fact, homeowners in Charlotte have more autonomy and access to information than ever before.
When you’re choosing whether or not to pay realtor fees to sell your house fast, you should make an informed decision about your NC home. The sales process for buyers who can pay without a mortgage company can bring on a fast closing date, especially compared to working with a real estate agent.
Advice on hidden costs
When you consider whether to sell your house to a we buy houses in Charlotte company, always take your time to understand whether the cash offer is a fair cash offer. Though closing costs will be lower with a cash offer, a buy houses company has got their own motives for wanting you to sell your house in Charlotte, NC to them.
Any honest investment firm is going to want to buy houses in Charlotte from homebuyers who are comfortable with the process and the price. Traditional home sales are full of hidden fees that home sellers don’t expect. That can happen with a cash offer for your Charlotte house as well.
Always ask any we buy houses in Charlotte, NC company to give you a breakdown of what’s involved in their cash offer. Home buyers should be upfront, even if they are ready to pay cash.
Key questions to ask about a cash offer in Charlotte
Image by Kenny Eliason via Unsplash
Here are things to ask before you get to the closing table. If we buy houses in a Charlotte company that you’re working with can’t or won’t answer these, it’s advisable that you look for another option to sell your house fast.
- Complete breakdown of the cash offer
- References from past home sellers
- Name of lawyer and title company
- Detailed timeline of the sale
- Proof of funds from the bank
These five pieces of information are essential when you sell your Charlotte home with a cash home buyer.
Final thoughts about selling to a We Buy Houses in Charlotte
Image by Craig Garner via Unsplash
If you have a property address in Charlotte, North Carolina, and are looking for real estate solutions, know that there is a great market of home buyers out there for you.
A competitive cash offer doesn’t have to entail endless open houses or working with buy houses, Charlotte, NC companies that can’t give you a straight answer. Helping homeowners should be a top priority of anyone who wants to buy a house fast in Charlotte. In fact, if I wanted to sell my house fast, I’d vet the home buyers in the same ways advised here.
The best buyer for your home is out there. You can sell your house quickly, and you can do it by getting a free offer from several companies. Getting top dollar for your house fast in Charlotte should be stress free if you know the process.