What to Look For From Home Buying Companies: A Guide
Did you know in 2020, the number of home units sold was more than 6 million? The pandemic drove the demand for home sales to the highest level.
People sell a house for many reasons like an upgrade or financial crisis. Also, job relocations and natural calamities can trigger the need to sell. Whatever the reason, as a seller, you hope to get the best deal for your home within the shortest time.
How do you achieve that? Home buying companies have come to alleviate the burden of the complex sale process. They buy your home at a reasonable rate within a short time.
However, you need to work with the best home buying company to get a great deal. But how do you find a good reputable company?
Keep reading to learn more about selling a house to home buying companies.
What Is a Home Buying Company?
A home buying company is a private business that buys and sells houses. It purchases real estate directly from sellers who don’t want to deal with brokers. They eliminate the hassles that come with selling a home.
The company can pay cash for the house or offer a check. It doesn’t matter if the house owner has negative equity or owes more on their mortgage. They can take over the homeowner’s mortgage or pay cash at closing.
The home is then listed in the multiple listings service and sold to other buyers. Besides assisting sellers, they also help buyers acquire properties.
Different Types of House Buying Companies
There are a lot of companies in the market that buy houses. It is essential to know which home buying company you should go for.
There are three types of house buying companies in the market:
A house flipper buys a home, renovates it, and sells it for profit. These companies attract investors looking for returns on their money. They commonly buy a foreclosed property or a fixer-upper that needs some TLC.
Often, people sell their homes to upgrade to a better house. Trade-in home buying companies buy houses directly from homeowners. They provide a cash offer on the spot, which frees up funds to buy a new home.
Some trade-in companies offer new homes to rent to their clients as they await their home sales.
These companies serve as an intermediary between the buyer and the seller. They connect the seller and an end-user buyer. This is common with e-commerce trading companies.
The company earns through commission.
Factors to Consider When Choosing a Home Buying Company
Many people are confused about finding a trustworthy real estate agent. There are a lot of scammers out there trying to make a quick buck. Many people have been taken advantage of, left in the dust with nothing but a broken heart.
It’s not difficult to find trustworthy agents. You have to know what to look for. Below are essential factors to consider when choosing a home buying company.
Experience of the Company in Real Estate
Many companies brand themselves as experts in real estate. Don’t go by their word, do your research to confirm it. Check whether the company is registered with the Real Estate Council.
If they are, it means they have gone through all the necessary training.
Check the number of years in business. Real estate agents who have been in business for several years have a strong client base. They know more about the market and how to get your home sold quickly.
Their presence may also add value to your home. It makes it easy to hold open houses, advertise, and show your home to potential buyers.
An experienced agent will negotiate better deals on your behalf. They will also make the transaction process easy for you.
Reputation is everything. Whether you’re a real estate agent, broker, or company owner. Your reputation is the foundation of your business.
A reputable company will have a solid track record. They provide excellent customer service and ensure that you get a fair deal. A good reputation takes years to build and can be destroyed in a flash.
It’s essential to find out what previous clients think about the company.
Check online reviews and consult friends who have used the company before. Review if they are listed on websites like Better Bureau Business. The reviews from previous customers give you a heads up on what to expect.
Consider the payment options of a home buying company before signing up to sell a home. Companies use different payment options like cash, cheque, wire transfer, etc., to pay for the property. You can find this information on the company’s website or by calling them.
If you are in a hurry to sell, the cash option is more convenient. Note that the payment option depends on the type of home buying company. House flippers pay upfront and later look for buyers.
For end-user companies, you have to wait until you get a buyer. This could take some time.
Type of Houses the Company Buys
Not all real estate companies buy every type of house. Some companies only buy foreclosure houses. Review if your house matches the type they buy.
Consider the condition of houses they buy. Do they buy new, luxurious, economical, or old houses? Which locations do they buy homes?
You might need to make some renovations and repairs before the sale. If you are selling an old house, it’s probably high degraded. However, consider a few improvements before the sale to attract a better deal.
Understanding the type of houses an agent buy allows you to target the right company.
Certification and Other Credentials
Work with a home buying company that is licensed and certified by the government. If you don’t, you may find yourself in a tricky situation. The real estate industry attracts a lot of scams that could frustrate you and make you lose money.
The critical credential to look for is ISO certification.
There are different standards of ISO certification. The company needs to have ISO 9001:2008 at least. It assures proven quality service.
Benefits of Using Home Buying Companies
Over the years, we have seen many people try to sell their homes on their own. It is a risky approach. It is not a bad thing to want to do everything yourself.
Selling on your own can take you months or years. Most people don’t have the time and skill to sell their homes successfully.
This is why many people are now turning towards professional home buyers. They employ advanced strategies and techniques to help them get the price they want. Here are the benefits of selling your home using a home buying company:
In the past, people waited two months between signing the contract and closing on the property. Today, with the help of house buying companies, you can close in as little as ten days.
Fast closing is a great option for sellers who need cash quickly. Most house buying companies offer same-day closings.
Cash Offers and Reasonable Rates
An increasing number of home buying companies offer cash offers to help people quickly sell their homes. These companies buy houses on the spot.
They have a good knowledge of the local real estate market. They will give you a fair price for your house.
Sometimes these companies pay more than the traditional real estate brokers. They don’t have the same overhead expenses. Eliminating intermediaries like brokers allow you to get reasonable rates.
House buying companies buy property as-is has increased significantly over the years. They purchase a property without requiring repairs. This saves the buyer both time and money.
These companies will buy your house within a few days of contacting them. They have a process that works so well that they can close quickly. If your house has a bad foundation or needs a new roof, they will still buy it.
Saves You the Hassle
Homebuyers save house sellers the hassle of moving and selling property. When you sell your house, they will take care of all the details. This includes cleaning up the property and removing personal items.
They also arrange for the house to be sold. They handle the paperwork and all of the details involved in selling your home.
Selling a house can be stressful. Dealing with different buyers and staging your home is tedious. Having someone take the burden for you makes it easy.
Sell Your Home With the Best Home Buying Companies
The best home buying companies are hard to find. However, using the above tips, you can easily find one. It will save you the liabilities of dealing with scam home buying companies.
Stewardship Properties help hundreds of property owners to sell their homes quickly. We deal with all kinds of unique situations. Our team of experts are well trained to understand the sensitive nature of selling a property.
Contact us today to get assistance selling your home at a fair deal.