The real estate market has probably never been as flexible and volatile as it is now. With so many different ways available to sell or liquidate property, it comes as no surprise to see many phony firms and con men trying to prey on the ignorance and desperation of homeowners.
If you live in the local area, then you must have come across more than a few billboards advertising companies that buy houses. Phrases such as ‘Houses for cash’ and other such catchy phrases are used to call attention to such firms.
So what exactly are these companies that buy houses?
Good question. Labeling them ‘we buy houses’ firms is actually oversimplifying who they are. Real estate investors is a better and (truth be told) more befitting appellation. These investors buy houses for amounts that reflect their current value as best as possible, more often than not in cash. They are profit making institutions, so the main target of purchasing these properties is to renovate and put them back on the market.
Of course there are dishonest people put their interests ahead of anything else and end up ruining the general impression people have of investors, but rest assured that there are several trustworthy investors out there who are determined to help sellers achieve their targets. To put this into perspective, here are a few of the contributions investors have made to the economy.
Most people who choose to sell their houses on short notice are either in desperate need for cash or need to move urgently. Whatever the reasons behind their decisions may be, real estate investors provide this badly needed cash within a couple of days.
Eliminate Unnecessary Expenses
Real estate investors eliminate the extra expenses that would have been incurred by the seller to list their property on the Multiple Listing Service. Equally money which could be used to pay for real estate broker fees could be saved.
Create Local Jobs
Real estate investors renovate property before putting them back on the market. By so doing they hire plumbers, electricians, brokers and loan officers among others. The average real estate transaction involves 86 people from start to end, thereby justifying the fact that investors create local jobs.
In addition to this, real estate investors contribute in increasing the value of local neighborhoods as well as increasing the overall tax base. This shows that allegations about investors and ‘house flipping’ schemes being phony are simply silly.
So how can you differentiate the reputable investors from the shady ones?
The best tool you have at your disposal is questions. Ask all sorts of questions in order to get a feel of who the person you are communicating with is. Two things in particular can help you determine if the investor is shady or not:
Manner of Closing the Deal
Most reputable house buying services will perform the closing of the deal in the presence of a neutral third party such as a closing attorney or title company. The shady ones will try to get you to sign over ownership on your premises which is very unprofessional.
Time Allowed to Close the Deal
Ideally, real estate investors conclude deals within 7-10 days. This time frame is short enough to provide the buyer with the money needed, yet long enough to ensure that all legal requirements are complied with. If you do happen to come across an investor who tries to pressure you into selling the house within a very limited period of time, chances are the investor is a con artist. In most situations a date will be agreed upon which the transaction is expected to be concluded, a date which takes into account any possible changes in value that may occur within that time.
So to answer your original question, yes you can absolutely trust ‘we buy houses’ firms. There are more than a couple of trustworthy firms in your local market such as Top Fair Offer who will offer you the best deals on your property. Reach out today and ask as many questions as you need, and I can guarantee you that you will be satisfied at the end of the day.