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How the We Buy Houses Business Works

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The worldwide web have already exposed many of potential home owners and sellers about the dynamics of housing and real estate. Most of the population, by a hunch, probably were influenced by ‘Selling homes? We buy houses!’ advertisements across content creating sites and alike platforms. However, the big question mark is, how does it really work?

Due to a surge of upcoming and beginning home purchase sites, and the fact that house showcases are still not permitted in some countries and cities – online sites have been the most reliable during this trying times (or is it?) To further walk you through the process of these home buyers, here are some of the details on how it works.

Who Buys the Houses?

When it comes to selling houses online, majority of the people in these sites are cash buyers. This does not just end on that category and it basically depends on the intention of the buyer. Some of those who belong to the population are Flippers.

Flippers are entities that buy a house in a poor condition on a lower price, upgrade it, and sell it for a higher value. These are often the safest category of buyers to lean on if the seller does not want any renovations done in the house (could be due to financial crisis) or just for the sole of getting cash.

Apart from this, some buyers can also be Renters. These are the people who intend to buy a home (or a townhouse), turn it into rental houses or an apartment building, and make it his or her business. This also can be a good choice if the cash amount is not big of an issue for the seller. Some housing websites often has two in combination or just simple a real estate management. Therefore, when it comes to choosing what site to choose when selecting a cash buyer – make sure that the site is legitimate and can provide the seller a breakdown of estimated house value.

Is It Really Hassle-Free?

If the dilemma is time, then yes, cash buyers can be in favour of the seller – but this may come at a price. If the seller solely wants the house to be sold, regardless of its value and cash worth, then it may be a good option. However, it is not really necessary whether the seller’s on a time crunch or not, selling houses to house buyer sites usually do not give the house the value it truly has. That’s why it is still recommended to hire a legitimate professional to gather resources and information.

How to be Fool-proof?

On a sensible note, sellers who seem eager to get cash often attracts housing scammers. In search for quick money, scammers usually prey on the desperation to have it sold. This means, although not all of them, housing sites tend to purchase the home in a much lower price than what it should have been.

One of the forbidden methods used is equity skimming. The process usually goes when someone hold onto the title of the house, illegally refinances it, and lastly, takes the equity without a trace. Worst case scenario is that victims may never go to the house yet on the hook for a home that has no equity and that could be up for foreclosure.

Conclusion

When it comes to selling your house for cash, as the seller, you should be accountable on who to trust and negotiate with. Although there are a lot of trustworthy house buying sites, it would not hurt to do a background check on how legal the buyers are.

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