Why companies buy houses on cash

Why companies buy houses on cash

From Mathew Philip

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It takes around 25 day to sell a house on open market and close to 30-45 days to close a deal. This does not include the many weeks of renovations and costly repairs that you will have to endure. If you have property that you want to unload fast, the best solution could be companies which buy property for cash.

Companies that buy for cash will save you a lot of time. The companies will dispose your property quickly and conveniently without the need to schedule repairs or pay closing costs. However, you will not make as much money are you could if you listed your property on real estate agents.

Buy Property As-Is

“We buy houses for cash” companies are usually out for quick profits. That is why they are not keen on the condition of the house. You may have a house that is in bad shape. If you were to list it on with a real estate agent then it will cost you repairs. Cash for Houses Company buy such ugly houses for cheap, fix them up if needed and resell them. Since these houses are usually in need for renovation, they will offer low prices and if the owner is in need for quick cash, they will easily dispose it.

They will fix the house and put it up for resale in open market. The companies may at times rent out the property instead of selling it. The do marketing campaigns to get buyers.

Target Certain Sellers

Many of cash-paying companies usually advertise the kinds of situation they are looking for in the hope someone will recognize their predicament and go to them. First, they look for people who cannot sell their property or whose listings have expired. The sellers might be finding it difficult to dispose their property due to the condition of the house or location. This is where these companies step in. In some case, the listing of real estate agent expires before someone is interested in the house.

These companies also target divorcing couples. In the event of divorce, some people want to dispose of the property as soon as possible and the viable option is to go to cash-paying companies.

Another situation is where a seller is bankrupt. Once someone files for bankruptcy they are in need of quick cash. Others are facing foreclosure and would like to sell quickly.

There are cases where the owners have been transferred by their employers and have to move to different states. Cash buying companies is their best solution.

Low Prices

Cash-for-homes are predatory companies. They prey on certain situations like the ones discussed here; bankruptcy, divorce, foreclosure and any other unfortunate circumstances.

They will use this situation to offer the lowest of prices. Normally, they offer anything from 50% to 70% of the home’s fair market value. They then turn around and resell you home to a conventional buyer for a higher price after closing the deal with you. In the end, they make exorbitant profits. There is nothing illegal about it so no matter how predatory that sounds, it is all legal.

Companies that buy houses on cash terms make it very easy to sell my house Philadelphia.

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