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Open Door vs. We Buy Houses – Which is Best for You?

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In today’s white-hot real estate market, there are tons of options for homeowners to sell their house for a great price. The question isn’t so much whether it’s possible to sell your house fast, it’s more about finding the right buyer. Looking for a homebuyer with integrity who will give you a fair shake is ultimately what it’s all about. 

New ways of selling your home

The internet changed everything in all aspects of our lives. Where it used to be that you had to either go to a traditional real estate agent to list and sell your home or put an ad in the local paper to sell it yourself, today there are a huge range of options available.

The rise of online home selling means that homeowners can connect with cash buyers all over the United States. It doesn’t matter if you live in Charlotte, North Carolina, or Grand Rapids, Michigan – you can open a search engine and find dozens of potential buyers in an instant. 

Finding out which homebuying company is the best fit for your situation isn’t easy, even with all of these choices available. The average price on the open market isn’t always easy to find. If you rent homes, then you’ll likely run into some issues with buying criteria, even on an all-cash offer.

Decision fatigue

Did you know that it actually takes a lot of brainpower to make decisions? In fact, the huge number of home selling options available can lead to something called decision fatigue. The mental overload that we experience can lead to extra stress, even if the choice seems logical. 

Depending on what time of day you make a decision and what other pressures you have pushing you, the mental stress of it all can have a real effect on what you do. When you’re selling your home, the most important thing is to be dispassionate about it. Coming to the process with an open mind but a sharp sense of the financial ramifications is the best way to get the best deal. 

Selling your home is a major decision that feels like it has serious consequences. What happens if you don’t make the right choice? If you go with the wrong buyer, will you miss out on money? What if you’d just have clicked on that other website or scrolled down to another page? The huge number of choices can make all of the decisions seem impossible to make. 

Research to narrow your options

One great way to combat decision fatigue is to narrow down your options to something that’s manageable. That’s why we’ve pulled down all of the potential cash buyers online to just two, Open Door vs. We Buy Houses. Both of these will give you a cash offer and a quick closing date. Each company’s fee structure is different, but they both have an online form for home sellers.

There’s always the option to go with a random real estate agent. You’ll be likely to get fair market value if you work with a licensed real estate broker, but you’ll also pay real estate agent fees. Local agents are fiercely competitive with other real estate companies, and they’ll always know the estimated retail value of ugly houses. Home sellers in San Antonio, Las Vegas, San Francisco, Dallas Fort Worth, or anywhere in the country can find a local agent.

The traditional home sale involves real estate agent commissions and transaction costs, so your fair market value is just an estimate. The purchase price could be higher or lower, and once local agents with a real estate company add in all the hidden fees, all-cash offers might sound more like a fair price.

These are two of the biggest names in cash home buying, so they’ll have the volume and experience to help most homeowners. You’ll be able to feel confident with either of these investment companies. It’s mostly a matter of understanding the differences between these two options and seeing which is the best fit for you. 

What is Open Door?

The online world of real estate buying and selling is huge today. Open Door is a website that went live in 2014 with the mission of connecting homeowners and real estate investors. It’s what’s known as an iBuyer, or Instant Buyer. That means that the closings are fast and the process is streamlined. With this platform, the offer for a home will be quick, but so will the timeline for closing. It all happens incredibly fast. 

There are only thirty-five markets in the United States where Open Door operates. That limitation alone can functionally keep a lot of people out of this service. For half of them, you can buy a home or sell a home. For the other half, you can only sell a home through their online home selling platform. 

Details about Open Door

Buying process for a piece of property

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It’s important to note that, beyond the restrictions on the location where Open Door will buy homes, there are lots of other restrictions as well. 

The limitations on buying mean that many sellers aren’t a great fit for Open Door. Here are some examples of property restrictions with this home buying company. 

– Homes listed between 100K and 600K (though in some instances they will go higher)
– Built after 1930
– Not in a flood zone
– Maximum lot of 2 acres
– Single family homes, townhomes, duplexes in all markets, condos in a few markets
– Only owner-occupied homes or vacant homes

The other thing to consider with Open Door are the fees associated with using their service. There’s a service charge of five percent and around one percent in closing costs. Those add up significantly. Open Door will also deduct the cost of projected repairs from their sale price. They aren’t a buy ugly houses company or a real estate investment company.

Where a buy ugly houses venture or a real estate investor might give you a cash offer and then fix up and flip your home, Open Door is more in the business to sell your home directly to another buyer at a profit.

Opendoor makes money through their undisclosed referral fee and potentially through a cancellation fee if the deal doesn’t go through. Though the closing date is closer than if you work with a real estate agent, the cash offer from this company might not meet your expectations. Closing costs and service fees mean you’re losing money versus what you could get on the open market.

There are lots of reviews that praise the fast and easy process of selling to Open Door. There are also lots of reviews that say that the offers are low and the repair estimates are high. 

What is “We Buy Houses”?

There are two possibilities for We Buy Houses. One is a slogan that lots of independent home investors use to advertise their services. Another is a branch of a direct home buyer. There’s even a variation that’s called We Buy Ugly Houses, which franchises its name to independent investors rather than being a monolithic company. 

Here, we’re going to talk about real estate investors who license the We Buy Houses name in their local real estate market. Licensing means that you’ll only find one of these in your real estate market – the rights are exclusive. There are more than two hundred licensed We Buy Houses companies in the United States. 

This conglomerate of real estate investors has its toes in markets from Kansas to Michigan to Phoenix to North Carolina and everywhere in between. 

What to expect from We Buy Houses

new house in Colorado Springs

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No matter where you live, the process is the same if you work with We Buy Houses. There’s a phone number to call. During that initial phone call, an agent will ask lots of questions to evaluate your home and see if it’s possible for them to buy it. 

After that initial call, they’ll connect to a local licensee who’ll come look at the property. Then they’ll make you a cash offer if they can. It’ll be up to you to see if that offer meets your needs. 

Here’s what you can expect from We Buy Houses:

  • Cash offer in 24-48 hours
  • Closing date in around two weeks
  • Can buy homes on the brink of foreclosure or that are behind on payments
  • Remote closing options
  • Short sale for underwater mortgages
  • Buys homes in need of repair as-is

One of the big cons here is that you may not get the level of cash that you want for your home. The offer is what the offer is, and you’ll have to decide if it can work for you. The timeline is also fast, so you’re trading control over the process for a cut in the price and for convenience. 

Keep researching home selling options!

real estate in Las Vegas

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It’s well worth the time that you put into the research process for you to get the best price for your home. Selling a house is a major commitment, just as buying your home was a major commitment. Current market trends mean selling a home for top dollar on your own timeline is easier than ever. The net proceeds when you transfer ownership, even if you’ve reduced the cost for needed repairs, is still a testament to the strength of the housing market.  

Though you may want to sell your house fast for cash, you also want to feel good about it! Don’t let decision fatigue get the best of you. Sit down with a sheet of paper and write down what works for you and what doesn’t. Open Door and We Buy Houses are both viable options, depending on your home selling needs. 

The Top 10 We Buy Houses Companies in Detroit

Ready to sell your house? It might sound like a long, frustrating process, but it doesn’t have to be that way. Though traditional home sales are done through a real estate agent, the effort and red tape involved can be a turnoff.  Lots of people looking for new ways to buy houses in Detroit, without using real estate agents.

There are both pros and cons to selling your metro Detroit house to a cash buyer. Weighing your options before you sell your house in Detroit, Michigan means learning as much as you can before you commit. Buyers and sellers have different objectives. You want to know as much as you can before you decide to go with a buyer of any kind.

Unlike selling in the traditional ways, these companies buy houses in Detroit, MI quickly.

Research Detroit homebuying companies

We buy houses companies are unlike individual cash buyers because they have a public face that you can research. Understanding what you’re getting into can keep you from getting burned. We buy houses scams are most often perpetrated by individuals, not companies. Finding a buyer with a proven track record will give you peace of mind. 

Looking at the list below of top we buy houses companies in Detroit is a great place to start. Check out their reviews online and be sure to research your 

1 – Steve Moves Michigan

Though this company is based in Detroit, Steve Moves Michigan buys houses all over the state. The process starts either over the phone or through their website. From there, one of the professionals will determine if the home is eligible for an initial offer. 

There’s no obligation to sell your home in Detroit from just the initial offer. Home sellers in Michigan can negotiate all the way up to closing. Steve Moves Michigan makes in-person cash offers prior to the final sale. In some cases, these home buyers in Detroit will even pay closing costs after they make an all cash offer. 

2 – Detroit Fair Offer

This hyperlocal Wayne County we buy houses company serves areas like Livonia, Lincoln Park, Royal Oak, and Romulus. Their free guide to selling your home has lots of information about how to sell your house fast in Detroit, MI. 

Look for a house offer within a day from Detroit Fair Offer. They have a relationship with a local title company to allow for fast cash closings. Detroit sellers can be done with the whole process in as little as a week. 

Rental property in Detroit

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3 – We Buy Ugly Houses

This national we buy houses company is known for its low offers but its quick turnaround. Closing on a home with We Buy Ugly Houses can be completed within just three weeks. 

Though there are lots of positive reviews about the ease of service with this group, it’s not a company that knows Michigan or Detroit as well as others. As with any company, there are pros and cons to selling your house to this cash homebuyer. 

4 – Express Homebuyers

A national we buy houses company, Express Homebuyers serves the Detroit metropolitan area. 

The first step in their process is for home sellers to submit their information. Once this is done, the company extends a home offer to buy the property “as is”. The sale is done through a local Michigan investor, who works with the seller on a closing date. Once the home closes, cash is in the hands of the Detroit seller within a few hours. 

5 – Jay Buys Detroit

 Jay Buys Detroit is owned by, you guessed it, Jay himself. Working with an inherited property in Detroit as well as vacant homes and pre-foreclosure properties, this company specializes in fast cash offers. 

One of the distinctive features of this we buy houses company in Detroit is its mission to rebuild the city. Detroit has been through a lot of ups and downs over the last century with the loss of the auto industry. Jay is focused on improving the communities of Metro Detroit through cash offers for home sellers. 

6 – Marketplace Homes

Detroit house

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Based in Detroit, MI, Marketplace Homes is a comprehensive real estate company. They offer home buying, home selling, rental services, and new construction. Even though property management might not be what home sellers are looking for, this company has possibilities for all kinds of options for sellers.  Their real estate agents can help you sell your metro Detroit house or convert it into a rental property. They work with local cash home buyers to facilitate the sale of burdensome houses in Detroit, Michigan, and beyond.

Rather than a superfast offer, this company takes a few extra steps thanks to their wide range of home buying services. After you contact Marketplace Homes with detailed information, they schedule a visit. Within 48 hours, you’ll have either a cash offer or another solution that they think will work for you. 

7 – Metro Detroit Homebuyer

This local cash buy company in Detroit only deals with house sellers in the Wayne County and the surrounding Detroit suburbs. Dennis Fassett’s home buying business is accredited by the Better Business Bureau. 

Experienced in divorce, foreclosure, probate, and vacant houses, Metro Detroit Homebuyer has been buying homes since 2004. They buy houses in any condition for cash. After you explain your situation and discuss your property, someone comes out to see it in person. A cash offer for your property as-is follows in a few minutes in most cases. 

8 – Rocket Homes

View from a vacant house in Michigan

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Rocket Homes is a home buyer and seller that serves Detroit and the surrounding areas, but it’s a national brand. This real estate company has cash buying options as well as mortgage options for buyers.  Not all buy house companies can give such a wide range of real estate solutions in Detroit, Michigan.

In fact, Rocket Homes extends their business to auto buying and selling. Though they don’t specialize in the we buy houses model, this is a potential option for home sellers in Detroit to explore. 

9 – Detroit Cash for Homes

Working in Oakland County, Macomb County, and Wayne County, Detroit Cash for Homes is a professional home buying company. They’ve been working as a Detroit cash buyer for a quarter-century. This company offers quick closings and specializes in inherited property and estates. Detroit Cash for homes makes an offer within twenty-four hours. Closings are as fast as seven days with this Michigan cash buyer.

Unwanted property in metro Detroit can be difficult to get rid of, especially when you want to sell your house fast. The difficulties of the Detroit area economy make it a challenge to sell burdensome houses fast, but Detroit Cash for Homes has a lot of experience helping people who need to sell their house fast. As with all metro Detroit area cash offer companies, this group promises that you can sell your house fast with a cash offer.

10 – I Buy Michigan Homes

This is a local property investor in Michigan who works all over the state. Ron and Velma work with sellers through their website and over the phone to do an initial assessment of the property. They then move to an in-person showing to determine their interest in purchasing your home.

Finally, I Buy Michigan Homes makes a cash offer within 48 hours. They’ll pay cash so that you can sell your house fast in Metro Detroit. Property owners can feel confident in the fair cash offer from this investment firm.

What to watch out for in we buy houses companies in Detroit

With all real estate transactions, be sure to do your due diligence. We buy houses scams often come from non-affiliated individuals. Look for reputable companies that have reviews online or who you have a personal connection to. Ask family, friends, and coworkers for recommendations and experiences. 

Don’t ever feel pressured by a company that is promising a fair all cash offer. You can always turn towards a traditional real estate agent to sell your house. There’s also the possibility to sell your house yourself. Though there are benefits to selling with a Detroit house company, like covering closing costs or getting a fair offer, always investigate your buyer.

Red flags like the lack of an online presence or bad reviews share an immediate no-go. Also, look out for anyone who doesn’t have experience in the metro Detroit area. In the current seller’s market, all home sellers have the high ground. Don’t accept a deal unless it’s a fair all cash offer. The quick turnaround of these companies means that you can find another real estate investor quickly.

Never work with a we buy houses company or a cash buyer who asks for any money upfront. There is never a situation in which cash should change hands before closing on a home. If someone asks you for a fee to sell your home, it’s time to find another buyer. 

Selling your home can be a great experience when you find house companies in Detroit that are above board. Michigan home sellers working with a cash buyer to sell their home for cash fast have lots of options!