Initially, it might sound too good to be true — a company will pay cash for your house regardless of its condition or if you’re in foreclosure. But it’s true. There are plenty of home buying companies out there who do this and have been for decades.
Working with a home buying company can be ideal for sellers in an array of scenarios. Maybe you need to sell the house quickly for an unexpected move, or perhaps you’re a landlord whose property was trashed by a bad tenant. No matter your reasoning, if you want to bypass having to deal with selling a house, consider a home buying company.
Before you do, though, here are 10 questions to ask a home buying company.
- Why should I sell to you instead of another company?
Home buying companies will claim to be the easiest, the fastest, or the best in the biz. Do your research, which includes asking them what makes their process so special and the benefits of working with them as opposed to their competitors. Their answer to this question will not only help you learn about their business model, but it will also show their willingness to educate you throughout the process. Someone legitimate will take the time to answer your questions.
- What kind of properties do you buy?
Whether you own a house, mobile home, or multi-unit property, make sure it’s in the wheelhouse of the home buying company. For example, some only deal with personal property. Some businesses also tout that they are not deterred by houses that are a mess — they’ll buy it as-is. With that said, don’t worry about getting the house in perfect condition like you would for an open house!
- Are you in good standing with the Better Business Bureau?
An easy way to find out if the company approaching you is reputable is to look them up on the Better Business Bureau and review sites, such as their Google Business Profile. Here, you can see any complaints filed against the company. While no company is going to have a 100% success rate, seeing a slew of the same complaints against a business is not a good sign.
- How do you determine the value of my property?
Typically, a home buying company has their own home evaluation tools that allows them to provide a quote for your property. In many cases, they’ll assess the value of your home based on its size, condition, and location, to name a few. You should not have to pay to receive an estimate, nor should you be obligated to move forward in any way after receiving it. After all, if the amount is too low, you should have the ability to turn it down.
- What experience do you have working with properties in foreclosure?
One of the reasons you may be looking to work with a home buying company is because your property has gone into foreclosure. Be sure that the company is familiar with the foreclosure and buying process so there are no hiccups along the way. This should also be a judgement-free transaction.
- Who pays for what?
During the traditional property selling process, there are fees for which the buyer and/or seller are responsible. Some of those fees include the real estate commission and closing costs. However, one of the advantages of selling to a home buying company is that there is no real estate commission. A good home buying company will also cover your closing costs. And a great home buying company will have an in-house title agency that can help you resolve any title issues that may arise throughout the process.
- How long after I receive the offer do I have to decide?
Understandably, a home buying company isn’t going to want to wait too long for you to accept or decline the offer they’ve presented. Ask how many days you have to think about it. Most importantly, though, you should never feel pressured to make a quick decision on whether to accept an offer from a home buying company.
- How quickly can you close on the house?
When working with a home buying company, you can expect that the process will be much quicker than listing your house on the market. According to Rocket Mortgage, it can take anywhere from 30 to 45 days to close on a house after an offer has been accepted. It will be much faster with a home buying company, about two weeks or less. But if time is of the essence and that’s not quick enough, the company may be able to accommodate your needs and speed it up even more. It doesn’t hurt to ask.
- How will I get paid?
While home buying companies will advertise that they pay cash for homes, that doesn’t mean you’ll receive a literal suitcase filled with hundred-dollar bills. (That would be nice though.) One of the most important questions to ask a home buying company is how they typically disperse payment and how long it typically takes to receive it. Ideally, they will offer more than one way to pay you so you have options.
- What will happen to my house after it’s been purchased?
While it can be difficult to keep your emotions out of the selling process, for some people, the future of the property they just sold is important to them. Possibilities include renting out the house or rehabbing it to put it back on the market. If this is important to you, be sure to ask.
Want more ideas of questions to ask a home buying company? Check out our “Frequently Asked Questions” page.
Working with Meridian Trust
There are lots of companies to choose from when selling your house. For more than 15 years, Meridian Trust has purchased tens of thousands of homes, townhomes, condos, apartments, and multi-family units in all sorts of scenarios and conditions. Vacated, rented, trashed, brand new, we’ve seen — and purchased — it all.
Skip the hassle of putting your house on the market and waiting for a buyer. Call Meridian Trust for a free, no-obligation property value analysis of your property. If we’re able to make you a cash offer, you can decide if you’d like to move forward. There are no hidden fees, and we even take care of the closing costs for you.
Call us at (954) 807-9087 to learn more.
Note: This guide is for informational purposes only. Meridian Trust does not make any guarantees about the sufficiency of the content in or linked to from this blog post or that it is compliant with current law. The content within this blog post is not a substitute for legal advice or legal services. You should not rely on this information for any purpose without consulting a licensed lawyer in your area.
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