In today’s high-interest rate environment, some homebuyers are skipping mortgage payments and paying for homes outright. But cash purchases aren’t just for investors and people with a lot of money; they’re also becoming increasingly popular among those looking to sell their homes quickly. That’s because companies that buy houses for cash can close in as few as seven days and cover closing costs. But there’s a catch: These companies typically offer less than what the property is actually worth.
There are plenty of reasons why people might want to sell their home quickly, including divorce, bankruptcy, and health problems. But it’s important to consult a real estate agent before accepting an offer from a cash buyer. They can help you determine if the offer is fair and advise you on your options.
Companies that buy houses for cash home buyers have a straightforward business model: They send local representatives to take a look at the property and make a no-obligation offer. Once the seller accepts, the company can close in as little as a month. The buyers may repair and flip the property, or they may rent it out. They often offer a lower price for the property than its market value, but that may be okay for some sellers who need to move on.
While some people may be tempted to work with these companies because they’re quick, it’s important to remember that they can still be scammers. They may use fake names and addresses to avoid being tracked by the authorities, and they can even purchase a large number of properties at once to increase their chances of finding a good deal. Some companies also require the seller to waive inspection and appraisal contingencies, which can leave them vulnerable if problems are discovered or the property doesn’t appraise.
Some cities and states have added extra protections for residents who are approached by cash home buyers, but this doesn’t prevent the unwanted calls from occurring altogether. In New York, for example, it is illegal to pester residents with offers to buy their homes. Residents can block these callers and report them to the city or state for violations. They can also add their number to the Federal Do Not Call Registry or the Do Not Mail list to prevent unsolicited contact.
As the housing market becomes more and more polarized between those who can afford to buy a home outright and those who struggle to save for one, it’s essential that prospective buyers have the right experts by their side. That’s why working with a trusted real estate agent and getting preapproved for a mortgage is so vital. As the market continues to evolve, these services will be even more valuable for those looking to purchase a home.