It’s likely you’ve seen commercials and ads for cash buying companies that promise to buy your house for cash and close quickly. This is a rather new concept for many homeowners who are used to the traditional sales process, so they might be curious about who these cash companies actually are.
Locally Owned
Most cash buying companies are locally-owned franchises. That means the owners are people from your area who know and understand what the housing market is like where you live. You may be dealing with one of your neighbors.
The franchise affiliation gives the cash buying companies some advantages, such as training and marketing. However, the business is managed by the local owners, and they are responsible for all decisions.
Pre-funded
Cash buying companies are pre-funded; that is, they have the cash on hand to make good on their offer to you. This is one reason the cash buy can set a quick closing date. They don’t have to worry about getting financing.
In the traditional home sale, even if the person making an offer on your home has pre-qualified for a mortgage, things can still go wrong at the last minute. A small glitch like a missing document or a question about the buyer’s down payment can cause the closing date to be delayed.
Real Estate Investors
Cash buying companies are not real estate agents. They don’t represent sellers or buyers in a home transaction. Rather, the cash buyer will buy your home directly from you, without any “middleman” involved. The direct buy means that you don’t pay a listing or marketing fee, you don’t pay commission, and you don’t pay closing costs.
Instead, the cash buyer makes money by buying unwanted or distressed properties and reselling them. This is why they can buy homes that need repair; they invest in the houses, make repairs, and sell them to new owners.
A cash buying company may seem like a mystery to you if you’ve never dealt with one before or you don’t know someone who has. If you’re considering selling your home, it’s worth your while to do some research about the companies and ask questions. The more you learn, the better decision you can make about what option is best for you.
Do you have a house in Utah to sell? Learn more about the cash buying process by clicking here.