Real estate markets across the country are going crazy. That includes our local Tulsa market. The increased costs for building materials helped pushed prices up, up, UP! Inventory cannot keep up with buyer demand. Even so, some people find themselves in a situation where they need to sell their homes quickly. Fixing it up, finding a REALTOR®, marketing it, fielding offers, and going through escrow may not fit in your timeline. So, those “We Buy Houses for Cash” signs might sound tempting. But before you make a decision about using them, carefully weigh the pros and cons first.
“We Buy Houses for Cash” Companies
Who Are These Guys?
These companies are comprised of real estate investors who seek out investment properties to turn over for a quick profit. Since they want to purchase properties for as cheap as possible, they look for homeowners in “desperate situations”. Like who? Couples going through a divorce. Someone in bankruptcy or foreclosure. Properties in probate. People that need to sell quickly in order to move for a job. This sense of urgency boosts the attractiveness of these companies.
Pros
The biggest positive perk of selling your home to a “We Buy Houses for Cash” company is the timeliness of it all. Instead of waiting a few weeks to complete a sale, you hand over your keys in a few days. Since they buy properties in “as is” condition, you no longer need to shell out any money to fix your Tulsa home up for buyers. Plus, you bypass such time-sucking items as appraisals, home inspections, and the entire escrow process. For someone on a deadline, this all sounds very attractive. But wait. Before you call one of these companies up…
Cons
…think about the downside. These companies are in it to make a profit. So, they lowball their offer to you. They pay well below fair market value (think around 6% of fair market value, in fact). That is a lot of equity to say goodbye to. Opendoor is one of the more reputable iBuyers out there. But even they pay just 80% of fair market value (or less). Unfortunately, scammers love taking distressed homeowners’ money. Some of them say that they will pay the mortgage off but simply sell the house out from under you, take the money, and run. This leaves the homeowner with the unenviable task of trying to pay for a mortgage on a home they no longer own. Therefore, if you do decide to go with one of these companies, make sure you do plenty of research into their company first.
I still believe with all my heart that the best way to sell your house is to hire a professional who knows their way around the local real estate market. (Like me.) It may take a little more time than using an iBuyer. But you stand to make a lot more money in the process. Contact me when you are ready to put your property on the Tulsa market.
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
