I’m sure you’ve seen the advertisements — “We pay cash for homes” or “We Buy Ugly Homes.” You might be curious what this is about and whether you should use a company like this with your McCormick Ranch home for Sale. Well, there’s the old saying, if it sounds too good to be true, it is.
The Ads Target Certain Types of Home Sellers
Companies that pay cash for homes are targeting sellers who are desperate to sell quickly. They might contact you if they notice your McCormick Ranch home for sale isn’t selling or if your listing expired. But they’re also hoping to appeal to you if they suspect you’re going through a divorce, bankruptcy, job transfer out-of-state, and so on. These buyers are also looking for homes in probate and foreclosure and even vacant houses.
No-Commission and No-Fee Promises
What can make these companies attractive in trying to sell your McCormick Ranch home is they promise no real estate commissions and no fees. They like to promote how real estate agents get rich off of collecting a fee by selling your home The truth is, we don’t get rich from a single sale. But agents will fight to get you top dollar for your home, unlike these cash-buying companies. They also don’t charge fees because they usually don’t hire an outside service to process the sale.
So, How Much Do They Pay?
Fast-cash buyers deal strictly with your equity position. Their strategy is to negotiate the lowest price possible for your home, unlike a realtor who tries to get top dollar for your McCormick Ranch home for sale.
The offer you get will likely be less than 80 percent of your McCormick Ranch home for sale’s value. Your equity position could also go down more than 50 percent. These buyers also take over your mortgage payment immediately. But you’re still on the hook for the loan until it’s paid off. Cash-buyers will use whatever means they can to cash you out such as lines of credit. They’ll close faster by giving you less cash.
What Happens After You Close With Fast-Cash Companies
Whether you sell your McCormick Ranch home for sale to a fast cash buyer or a conventional buyer, you will get cash either way. A conventional buyer, though, will probably pay more and will most likely take out financing that’ll pay off your mortgage loan that currently exists. Also, a fast cash buyer will probably turn around and sell your house at a much higher cost to a conventional buyer.
It’s best to go with a reputable real estate agent such as myself as opposed to a fast-cash buyer. You will get more for your house.