This year has been an interesting year for just about everything, including how to go about selling a house. If you’re looking to sell your property, you’ve probably been researching the best ways to go about it. Hiring a real estate agent, selling by owner, maybe even selling to an iBuyer. But what about we buy houses company?
You’ve probably seen their signs around town, posted on street corners saying “We Buy Houses,” but who are those people? And do they really buy houses?
Those are great questions to ask and to get answered before selling such a big assist as a house.
That being said, you’ve come to the right place to find out more information regarding we buy houses companies, how they can purchase your home, as well as the pros and cons of working with a local home buyer. So let’s begin.
What Are We Buy Houses Companies And The Pros And Cons Of Working With Them
We Buy Houses Companies
The first question to be answered is: who are these we buy houses companies? We buy houses companies are usually a single person or small group of local investors that purchase homes in your area to renovate and resale or hold on to as rental properties.
There are bigger we buy houses companies out there that set up locations in multiple cities.
They usually conduct marketing campaigns and use local franchises in the New Jersey area to purchase properties for redevelopment or to flip.
Each has their own goals in mind when buying your home and offers various benefits for homeowners looking to sell their properties.
The process of working with we buy houses company is relatively simple. You would start by either visiting their website or calling the home buyer. Usually, they ask for some information regarding the property you’re selling, like how old it is, square footage, and if you’ve done any renovations or know of any repairs that need to be done.
Then the next step would be to schedule a convenient in-person walkthrough or video walkthrough of the house.
Once the property is viewed, they will run a final property analysis of those details and look at what other residences similar to yours have sold for in your area. Within 24 hours, you will receive an all-cash offer for your home, and once accepted, choose a closing date that works best for you.
Working with a homebuyer also provides you a quicker closing than with a traditional home sale. Homebuyers are usually able to close within 10-20 days after you accept the initial cash offer.
Working With We Buy Houses Companies
As mentioned above, there are several we buy houses companies out there, so to confirm you’re working with a legitimate home buying business, it would be a good idea to do a bit of investigating on your part.
To start a home buying business, a person does not need to have a limited liability company (LLC). Still, if a home buying company is an LLC, it shows they took their business a step further and submitted a business structure that is allowed under state statutes. To file an LLC has specific requirements before being granted the title. So it’s a perk to find a home buying company that is officially registered as an LLC too.
Here are some other things to look for when searching for a ligament we buy houses company:
- An official website. Any business claiming to buy houses should have a website detailing their home buying process and how to contact them.
- See if they have a picture of themself on their website- it’s always good to put a face with a name. Also, just to confirm, you’re working with a real person.
- Search for reviews about the business and read them; some reviews can be fake so do some digging.
- Look for a home buying company that pays in cash, closes on your time frame, and will buy your home in as-is condition. This information should also be noted on their website.
- Find out how long they have been in business; showing they’ve been in business a few years is a good sign of an operating company.
Something else that is a helpful tool to verify you’re working with a legit home buying company is to see if they are registered with the Better Business Bureau (BBB). Not only is being accredited by the BBB a process, but people can leave reviews and file complaints here too. So if the home buying company you’re looking at is accredited and has a good rating and reviews, you’re one step closer to working with a trustworthy home buyer in your area.
Finally, while searching for a home buyer, you want to find someone you feel comfortable with; after all, they will be buying your house. Find a homebuyer willing to work with you, answer any of your questions, and put everything in writing.
An example of a legitimate home buying company in New Jersey would be Halo Homebuyers LLC. Halo has been in business for nine years and is accredited by the BBB with an A+ rating. They have an official website, good reviews, are a cash buyer, and offer homeowners multiple selling solutions. Halo Homebuyers is an excellent example of a good we buy houses business in the New Jersey area.
Now that you understand what a we buy houses company is and what to look for in finding a good New Jersey home buyer, it would be good to know the pros and cons of working with a homebuyer in your area.
Pros and Cons of Working With A We Buy Houses Company
There are some advantages and disadvantages of working with we buy houses home buyers. Let’s take a look at we buy houses pros and cons to see whether working with one is a good idea for you.
Pros of Working With A We Buy Houses Buyer
- They Pay In Cash– this is a big pro of working with a we buy houses buyer because this means they don’t need to wait on bank financing to purchase your house. Traditional buyers have to get approval from their mortgage lender before buying a home or may have financing fall through, but not for a homebuyer. They already have the cash ready to purchase your home.
- They Can Close Quickly– since they pay in cash and don’t need to wait on bank financing, they can close a lot sooner than a traditional buyer can. For example, a conventional closing process can take 30-60 days- for a home buyer to close takes 10-20 days. If you need a quick home sale, selling to a home buyer is a good idea.
- They Buy Houses In As-Is Condition– This pro is important for several reasons, especially if you have a place with a leaky roof, foundation problems, fire damage, or needs major repairs. Repairs are expensive and take time to complete. The average cost to renovate a kitchen is between $13,000 to $37,000 and can take weeks or months to finish—a new roof on a 2,200 square foot house costs between $9,500 to $12,000, and to repair your foundation; you’re looking at $450-$11,000.
Typically, buyers are looking for homes in turn-key condition; they’re not looking for a home that requires costly repairs as soon as they move in. In addition to that, if you do happen to find a buyer willing to take that on, for banks to loan money to someone requires a home inspection to be completed; if the house can’t pass a home inspection, the bank won’t finance the loan.
Unlike traditional buyers, a we buy houses company will purchase your home in as-is condition. No repairs or renovations are required. Since they pay in cash, they are not subject to bank requirements. This is a massive advantage to you, saving you thousands of dollars and months of dealing with home renovations.
- They Don’t Charge Realtor Fees– Have you seen how much realtors can make from a property sale? Needless to say, it’s not cheap, and that’s money you could hold onto if you were to work with a we buy houses business.
Real estate agents, on average, make 5-6% from the sale of a home; it may not sound like a lot but let’s do the math. Say your house sells for $350,000 if your agent charges a 6% commission; you’re looking at paying them $21,000!
And unfortunately, that amount doesn’t change for a realtor working hard to sell your property or seemingly putting in little effort.
Since a homebuyer is the one directly buying your house, a realtor doesn’t need to be involved, which results in you not having to pay a realtor’s commission.
- They Help Pay Closing Costs– Another cost saver and pro to working with a we buy houses company is that they pay closing costs. In 2017 the average closing cost in New Jersey was between 2-3% of the purchase price. So if you were to look at that math again using the example earlier, the closing costs for a $350,000 house would be $7,000 at 2%. This amount can be split between the buyer and seller, but how nice is it to find a buyer willing to pay for all of it.
- They Are Easy To Work With- When you contact a home buyer, they want to work with you and find a win-win situation. They even work on your timeline. You will be able to choose a closing date that works best for you, whether that needs to be fast or slow. And when you move out, no cleaning is necessary; you can even leave unwanted items there. Do you know a traditional buyer offering that?
- They Offer More Security– once you contact a we buy houses company, you get an offer pretty quickly. You don’t have to go through the process of listing your home, showing it multiple times, and waiting for an offer to come in, and then hoping the offer doesn’t fall through. On average, in New Jersey, it takes 64 days to get an offer on your house- and that’s to say your house is in a condition to sell. Would you rather deal with months of uncertainty before actually getting an offer or instead get an offer within 24 hrs and know pretty quickly your house has sold? That sounds like another pro to working with a home buyer.
- They Can Handle Unique Situations– We buy houses companies are great for people dealing with challenging selling situations. They can work with you if you’re facing foreclosure, bankruptcy, going through a divorce, title issues, probate, hoarding, problem tenants, and more. Not something an average buyer knows how to handle, but a home buyer does. Another thing you can add to the list of pros of working with a we buy houses business.
Cons of Working With A We Buy Houses Buyer
Okay, so you probably think that sounds great and everything, but is there a catch? We buy houses pros sound terrific but what about the cons? Let’s take a look at some of the we buy houses cons to figure that out.
- Expect to Sell at a Discounted Price– When working with a we buy houses business in New Jersey, you can save time and eliminate the hassle of making repairs to bring your house into a list-ready condition. Because of that convenience and ability to sell fast, you can expect to sell at a discounted rate when selling to a home buyer.
A we buy houses buyer will consider all of the above when making an offer and will include the cost of repairs, renovations, and risk into the proposal. Though you wouldn’t be responsible for any closing costs or realtor commissions when selling your house to a home buyer, the buyer will cover these on their end, so these estimated fees will be factored into the offer the buyer makes on your house.
For some people, this a con or may not sound ideal. Still, for others, they may not be expecting a big profit anyway and appreciate that a home buyer can offer cash, close quickly, not have to put in any time or money into home renovations or pay agent fees. If you’re looking for that and see the value in getting your home sold fast, then working with a we buy houses company is for you.
- It Could Be A Big Company– Depending on which we buy houses company you’re working with-some are bigger than others, and you may feel like a number. This can be considered a con of working with a we buy houses company. At least working with a local home buyer, you know you would be working with someone in your community. Big companies tend to purchase homes to resell or redevelop them. Local house buyers repair the house and resell it to another homeowner or keep it as a rental property. You will definitely feel more of a personal connection with a local house buyer than a big real estate company.
- No One is Working On Your Behalf- since you’re not selling with a realtor, you will have to be the one to advocate for yourself. It will be up to you to work through the contract and figure out the real estate language. Just be cautious; this is when a bad business deal or scam can present itself. To prevent that, simply hire a real estate attorney if any of the vocabularies seems confusing or if you’re unsure about anything.
There are some we buy houses pros and cons to selling to a home buyer but selling your home this way does have some huge advantages. The key is to find the right we buy houses company to work within the New Jersey area that is reputable and trustworthy.
If you do decide to sell your house to a we buy houses business, make sure to check out Halo Homebuyers. They passed all the reputable home buyer things to look for listed above and are a Christian based home buying business.
Halo Homebuyer’s primary focus is to help clients sell their homes fast and efficiently with the least amount of stress. They provide honest solutions that fit homeowners’ exact needs and situations. They even have a redevelopment company (Halo Redevelopment), with a full construction team that can take over and renovates a house into the best version of itself. So if your home needs major repairs, you would be leaving it in good hands selling to Halo Homebuyers.
Compare the difference of selling to Halo vs. listing with an agent and see for yourself the advantages of working with this we buy houses company by clicking here.
Homebuyers do purchase homes for other reasons besides unique situations. So if you’re looking to sell an inherited house, a new house, because you’re relocating for a job or trying to downsize, homebuyers are looking for those types of properties too. Even in these types of situations, we buy houses companies offer the same benefits: paying in cash, buying as-is, fast closing, and no commissions or closing costs.
For whatever reason, you need to sell a New Jersey property- see what a local homebuyer like Halo Homebuyers could do for you.