If you’ve been driving around, chances are you’ve seen some roadside signs advertising companies that buy houses fast and for cash. Often times they say things like “We Buy Houses!” or “Cash For Your House”. Or maybe you have even Googled, “Home Buying Companies Near Me”. Either way, if you’ve ever asked yourself, “Are these home buying companies legitimate and trustworthy?”, this article will help you figure that out.
Are These “We Buy Houses Companies” Credible?
So, you might be asking yourself, how do I know if the local house-buying companies out there are honest and credible?
Well…they may all look similar in the beginning, but digging further will likely reveal some differences. Read on and below we’ll walk you through some things to look for in a local house buying company before deciding whether or not you should work with them.
Quick Home Buyer Companies Fill A Need
Buying and selling houses is a valid and respectable profession that can help neighborhoods, communities, and house sellers in many ways. But just like any other line of work – it’s typically a minority of house buyers in any market are the ones who make the rest look bad and grab the headlines.
Most of these companies are honest, and trustworthy house buyers who improve their cities by improving neighborhoods one property at a time.
But then there are the less honest people and outfits who lack integrity and will put money ahead of the well-being of their clients. These are the type of people who would be knowingly untruthful or unethical in their dealings just so they could close a deal. Yes, there are companies out there like this. And these outliers are the cash house buyers that the media profiles. The problem is that the media is eager to paint every other house buying company in the same line of work with the same brush.
But we’ll help you avoid these “shady house buyers” so you can work with honest, ethical, and reputable local companies like SUNRISE HOME BUYERS who can buy your house for a fair all-cash offer and close on your timetable.
But let’s not focus on the negative – at least not yet.
First, let’s cover how the above average, “We Buy Homes” cash home buyers operate.
What Reputable House Buyers Are Doing
- Helping homeowners improve their lives by accessing the money they need right away. People often need the cash in their house to cover unexpected medical expenses, clear up consumer debts, or relocate to be close to a relative. We can make that happen in just a few days, and we deliver peace of mind.
- Helping sellers get rid of a burdensome property without the hassle of having to fix, clean up and then list it with a broker and wait potentially several months for a sale.
- Creating local jobs. We hire plumbers, contractors, electricians, brokers, loan officers, administrators, and many other folks along the way. The average real estate transaction involves 86 people from start to finish! Amazing isn’t it? Our investments help create real jobs for people around Alberta.
- Buying local products & using local services. We try to purchase materials that are made right here in Canada – that creates jobs in our timber mills, factories, supply shops, distribution centers, and more. The Canadian economy depends on steady improvement, and that requires investment from folks like us.
- Increasing the value of neighborhoods. When we improve a house, we’re helping to increase the value of the entire community. We often repair abandoned and neglected houses, turning them into beautiful homes for families. This type of venture strengthens communities, creating a sense of pride.
- Increasing the tax base. When a new buyer takes over one of our properties, they’ll pay a higher tax rate based on the new and improved value. Those taxes go to pay for our schools, fire, police, libraries, streets, and other valuable pieces of infrastructure. Again, improving our neighborhoods.
Services Cash House Buyers Are Performing
Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly HGTV “reality” shows that amp up the drama and the numbers to try and attract more viewers. But honestly, the reality of what we do on a daily basis is actually pretty boring.
Most of our work is coordinating with lots of different skilled people to make sure tasks are done properly and happening on time. We have to keep track of many moving parts.
So let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house-buying scam.
How To Find A Reputable House Buyer
When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and display integrity.
Ask open-ended questions like:
- How do you help your clients?
- How exactly do you help people when you buy homes for cash?
- Can you tell me more about your services?
- What aspect of your business makes you the proudest?
- How would you describe your business philosophy?
- How can I know that you’ll close on my house when you say you will?
- How long have you been a cash house buyer?
- What if I don’t need to sell my house quick, but want a guaranteed sale?
Tactics of Shady Cash House Buyers
Look for tell-tale signs of tactics that those few marginal operators tend to use.
- Using professionals….or amateurs? When working together with a We Buy Houses company, verify that the different roles in the process are filled with people who demonstrate experience, confidence, and competence! Most reputable house buying services will enlist the help of well-qualified realtors, mortgage brokers, appraisers, contractors, house inspectors and lawyers. Feel free to ask for references. This ensures everything is done right and on the up and up.
- Pressuring you into a fast closing. If a house buyer tries to pressure you into selling your house and says that you have to make the decision today, be leery. The pressure of the “limited time offer” is one way to spot a potentially shady company. Most reputable house buying services will make you an offer and that offer will be on the table for at least 2-7 days (minimum) for you to make a decision. The reason reputable house buying services like Sunrise Home Buyers do place deadlines on our offers is because the market changes and values can change week to week depending on other sales in the area. Further, sometimes we might buy multiple houses in a short period and that affects our financial resources. So when we make you an offer we’re assuring you that the cash to purchase your house is ready and we’ll reserve that cash for a designated time period. If you do want to sell your house, we can close on your schedule. If you feel the offer isn’t a fit for you, then we’ll assign those funds to help another seller who needs a fast cash offer.
Most scammers are looking for a quick sale, and not an in-depth , customer-focused and lengthy process.
Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.