Let’s face it, investors who advertise “we buy houses” sometimes get a bad reputation for being predatory, but this is a false reputation. Maybe this is because investors are trying to make money, and this makes their ads assertive. They have to catch your attention in a highly competitive market. The trick is to find the right investor who will buy your house for a fair amount of money and in a way that serves you, too. In economics, we call this the “virtuous cycle.” Most of these investors need to maintain their reputations in their communities, and besides, they’re required to obey the law, too. They don’t want to be sued, and in truth, this can be a win-win relationship for both of you.
The We Buy Houses Pitch: They might approach you with a sales pitch that goes something like this: We treat you fairly when we buy houses. Many investors use flyers with catchy slogans such as: We buy houses for cash. They might add their moral bonafides by adding this: We treat you FAIRLY when we buy houses. Sometimes, no matter the equity you have in your home, they’ll make grand promises that include their speed at getting you the money with a phrase such as “We buy houses for QUICK CASH.” Though these sales practices are aggressive, they’re also necessary in a very competitive industry.
Why You Might Want to Listen to the We Buy Houses Pitch: In today’s market, homes can sometimes linger for months and even years on the market. Investors who make a living buying and selling homes can often afford to float an investment for years in ways you could never afford. Therefore, if you it’s urgent that you sell your home quickly, an investor can be a great option for you. If you’re close to foreclosure, it also might be a good time to move quickly to sell your home.
Benefits of We Buy Houses Investors: Cash buyers for houses were called equity purchase companies (EPs) before the advent of social media advertising. Though sometimes a real estate agent might land you 125% of a home’s fair market value, that usually requires patience. If you can’t afford to wait for your home to sell because of difficult circumstances such as a divorce, bankruptcy, or a sudden job transfer, etc., they can help you quickly. In that way, their advertising is accurate. Many people in these circumstances need the help of an EP company, and they provide a beneficial service to their communities by filling vacant homes and purchasing foreclosed properties. In addition, cash buyers for homes usually don’t charge commissions and fees, and that can be an important benefit if you’re under financial distress.
In short, these house purchasing companies are a legitimate part of the real estate market in almost every community. They aren’t the best choice for everyone, but they can be extremely helpful for those who find themselves in a difficult predicament.