Have you seen ‘We Buy Ugly Houses‘ or ‘We Buy Houses‘ ads before? If so, you may be considering selling your home to one of these companies. Before you do, we wrote this article to be 100% transparent with you on how these companies really work and what you can expect when selling your house to them.
Who Are Those We Buy Houses Companies Anyway?
Selling a home can be very difficult. There is a ton of stress involved when selling your house whether you’ve sold a house before or it’s your first time. From cleaning and fixing the property to listing it and allowing total strangers into your house at all hours of the day and night to decide if they want to buy your house.
It’s no wonder many people choose to skip the repairs, listing, and hassles altogether. Many do this by selling their house to an investor for cash instead of listing the property with a Realtor. This is especially true when a house needs lots of repairs after years of wear and tear.
This is where those “We buy ugly houses” ads and companies you may have seen come into the picture. These companies, for the most part, are legitimate companies. However, there are plenty that are unscrupulous and can put you in a bad spot.
First, Is Your House Really Ugly?
No matter how your house became ugly, whether it was just years of wear and tear or you inherited a property that was not well maintained, there’s an old saying you can’t put lipstick on a pig.
We mean that in all lightheartedness, however, in many cases a house may need lots of repairs and work to make it sellable. Sometimes a simple paint job won’t do.
If your house is considered ugly in this sense and you don’t have the money or time to do these repairs, it makes perfect sense to sell to an investment company as opposed to selling with a Realtor.
This is where working with an investment company benefits you the most because you are not obligated to fix up the property or repair it in any way. You can leave your house exactly “as-is” and the investor buyer can purchase it to fix it up later.
If your house is in great condition, selling to a company like these may not be your best option unless you are looking to avoid paying Realtor commissions.
This all depends on your situation, goals, and condition of the home. If you’re not sure, reach out to an expert to get your questions answered.
Second, Don’t Fall for the Mass Marketing Hype
As mentioned, house buying companies in most cases are legitimate, however, because they do mass marketing and advertising they typically provide lower levels of service. Basically, what we mean is, they lose the personal touch of working 1-on-1 with a homeowner to help you out of a tough situation or to make an offer on your house.
To contrast, unlike companies that do mass marketing in the typical ‘we buy ugly houses’ fashion, we offer a more 1-on-1 interaction with homeowners. Many homeowners loved working with us because we took the time to understand their unique situation to make them an offer that made sense to them.
Even though we buy ugly houses also, and lots of them, we work with every homeowner 1-on-1.
Remember, don’t fall for the advertising hype, always choose a company that works best for you, whether that is us or someone else.
How The We Buy Ugly Houses Process Works
There are a few steps involved when selling an “ugly” house. We’ve outlined them below to give you a quick education on the process so you’re prepared for anything that comes your way.
1. The Homeowner Reaches Out for an Offer
Have you decided to sell your house? If so, this is the first step in the process. If you have a house that needs a lot of work you can reach out to a company like ours that buys homes all the time. Any we buy houses company can provide you a cash offer for the house in its current condition, but not all will provide you with a fair offer. More on that later. Once you submitted your offer request, you will move to the next step in the process.
2. Evaluation of the Property
If you like the initial offer, the next step is to schedule a visit for the real estate investor to view your home. This step is necessary for the investor to inspect the property.
Unlike traditional buyers, an investor buyer is not there to see the property in perfect condition. So there’s no need to tidy up, repair anything, or clean the home. As investors, we’re there to check the overall condition of the property including its foundation to make a fair offer for you.
Since we buy homes in “ugly” conditions to fix up and repair later, you won’t scare us away. Trust us, we have seen some really ugly houses :).
3. The Real Estate Investor Provides a Cash Offer
The next step is our favorite. At Property Nation, we have surprised many homeowners with a fair offer that was beyond what they expected.
This is also where most we buy houses companies drop the ball. They provide a very low-ball offer that may anger you and waste your time.
Typically in this step, you’ll get your offer on the spot or within 24 hours of the investor seeing your property. Keep in mind, this is a cash offer. Not a loan offer that you will have to get approved by a bank or wait months to complete the sale.
This makes the offer much more valuable as you can sell the house faster without waiting for months.
With us at Property Nation, you can think about the offer for up to 14 days, and we never pressure you to make a decision. You can even send it to your lawyer if you want to make sure we’re looking out for your best interests.
Many other we buy houses companies are afraid for you to do this because you may discover that their contracts lock you into something you shouldn’t be locked into.
A common indicator of a shady company is one that pressures you into making a decision or selling. If a company does this and makes you feel uncomfortable in anyway about the situation it may be best to walk away.
4. Go to the Closing and Sell Your House
The last step in the ‘we buy houses’ process is then you the homeowners favorite. That is selling the house and leaving with a large check.
We have a team of licensed professionals ready to ensure the entire transaction is processed smoothly and legally. This is important when choosing a ‘we buy houses’ company to sell to. Make sure they are accredited and work with licensed professionals to make sure the house is sold legally based on the requirements of your state.
Again, we recommend doing your homework and working with a company that is transparent and open to questions. Feel free to ask us any questions you have, we’re always looking to provide guidance.
What Happens After the House is Sold to an Investor?
This is the part most we buy houses companies don’t want you to know. Mainly because you may feel cheated or slighted in some way.
When a we buy houses company typically purchases your home they can then resell it for a profit. This is how they make their money and stay in business.
At Property Nation, we typically purchase the property in order to fix it up and resell it for a profit after we put thousands of dollars into repairs. Similar to those fix and flip TV shows you may have seen.
Here is an example of below of a home we recently renovated:
Other times the house is fixed and rented instead of sold. Either way, we add value to the property by taking it over and completely renovating it from top to bottom.
This is why we actually enjoy buying what others consider “ugly” houses because it gives us the opportunity to fix them up and improve them beyond their original condition.
Is It Worth Selling to a We Buy Houses Company?
The short answer is, it’s up to you. Do what’s best for you. However, it doesn’t hurt to get an offer from us and find out if the offer is worth accepting. There are no obligations, and as we mentioned you have up to 14 days to decide before the offer expires.
If you do have a house that needs lots of repairs or improvements, then sell house fast miami company like ours can be your best option to get you the most money without having to do any repairs or spending any money out of pocket.