You may have seen ads around your neighborhood from a cash buying company. These are companies that specialize in buying unattractive or damaged houses in cash. They often have a number and not much more, and they'll promise to purchase your house fast. Should you try to sell your house through one of these companies?
What is a Cash Buying Company?
Most cash buying companies are house flippers. They're purchasing homes that sellers want to get out of very fast. They then renovate the homes and sell them for more money. There's absolutely nothing wrong with working with a cash buying company; they're a niche intended for homes that wouldn't otherwise sell.
However, if you don't need cash now, it may not be the best choice. A cash company is offering you a fast payment on a home that may not necessarily be up to code or up for resale. As a consequence, they're going to offer you less than the property may actually be worth.
What Are Alternatives to Cash Buying Companies?
If you just want to sell your home faster, you can price it to sell. An agent can help you determine a price that's low enough to bring bidders in fast. From there, you can look at cash buyers. Mind you, you're probably going to spend at least 30 days on the market regardless. If that's too long, you might need to go through a cash buying company.
When Would You Need a Cash Buying Company?
Apart from selling a home fast, a cash buying company can also be necessary if you feel that your home can't sell otherwise. If your home is damaged or not in habitable condition, for instance, most people aren't going to want to buy it. No mortgage company is going to underwrite a loan for a home that cannot be lived in, so a cash buying company may be the only option.
Cash buying companies are also often for ugly or dated homes: homes that are just unattractive and need a refresh. If you can't spend the money to renovate, it may be the best option.
It costs nothing to meet with a real estate agent before you try to sell your house. Though cash buying companies are going to purchase your home quickly, they also often pay a lot less. If you can afford the extra time, you can probably make extra money.