Business Interests: When A Company Buys Your Home
Most people have seen the billboards offering to buy your home no matter how "ugly" it is. This type of buyer is only one of several you might encounter once your home is on the market. Businesses that buy homes have proliferated lately and it can be difficult to determine who exactly is trying to make a purchase. For a better idea, read on.
Home Buying Franchises
Some home buying companies focus on individual sellers. They usually offer the seller cash for the home, which can mean a faster and easier closing. Often, they target sellers who don't want to fix their homes up or are unable to do so and that means the homes are sold "as is" and may be purchased for less than top dollar. For instance, if a home has been inherited by out-of-town beneficiaries after a death, it might be easier to have this type of franchise cope with all the details for the sale.
Home Flippers
Most have seen the popular flipping shows on HGTV and the like in which homes are purchased sight unseen. The home is then totally remodeled and sold for a nice profit. In most cases, these are also cash sales with the flipper trying to flip the home to a buyer in as little time as possible. For the seller, it means not having to bother with doing the updates themselves but the downside can be lower sales prices.
Home Trade-In Dealers
This type of home-buying company attempts to provide the seller with a fair sales price while also promising some needed cash upfront. This involves lenders, investors, and sometimes real estate brokers who purchase a seller's old home and provide the cash to the seller. How much they pay the seller depends on the comps and the home's condition. If the home is in good condition, the seller will then be able to immediately buy a new home. Once the old home is sold, the trade-in business takes a percentage of the sale for their fee. That means the seller can move quickly using the cash advantage to buy a new home.
The options above may be right for buyers who need to sell fast or don't intend to do any home improvements on their old home. Be sure to discuss the above with a real estate agent and lawyer before you make a decision about selling your home.
