One of the most frustrating things about selling your home with a real estate agent is how long the process takes to actually get your home sold and finally walk away with much-needed money in your pocket and less stress on your mind.
That’s why many homeowners in the Chicago area who need to sell their homes quickly choose to search online for cash home buyers.
However, you should be aware of the different types of cash home buyers before you decide which one to sell your home to. Most of these buyers are reputable (though some are not), but there are some key differences that can impact your overall experience and how much money you ultimately get.
These are eight types of cash buyers you will most likely run into during your home selling process. Keep in mind that most of these companies can take at least 3 weeks to buy your home. On the other hand, Homes to Harmony can buy your home for cash in as little as 7 days.
iBuyers
You may have noticed ads lately that are from large real estate companies, especially online listing platforms, that want to buy your home for cash.
These iBuyers are often well-known companies you’ve heard of and use algorithms and data to make as many home purchase transactions as possible. They will then “flip” the houses to sell at a markup. Since they want to resell the homes as quickly as possible, they focus on homes that need little to no work and charge homeowners for the convenience of not having to go through the typical mortgage process.
So if your home isn’t in the best of shape, this type of online cash home buyer likely won’t be interested in buying your property.
Wholesale Cash Home Buyers
A wholesale buyer is a middleman between you and the actual investor purchasing your home. Wholesalers will search for deals, and sellers looking for cash. They will make an offer to the seller and then, for a fee, will sell or “assign” the completed contract to another investor.
The wholesaler never actually owns the home nor do they have the cash to buy it. They simply buy the “exclusive rights” to a home and then try to find another investor who has the available funds and is willing to purchase the right to buy the home.
So when a wholesaler offers to buy your home in cash, what they’re really offering is to find someone who will. And they’ll often start with a very low offer to make your home attractive to potential buyers.
Highest Bidder & Negotiator
Everything will seem like it’s going well in your cash home offer deal when you find a bidder offering a higher price than you would have imagined. You’re going through the motions, having inspections done and the title searched.
Then suddenly, the buyer comes back to negotiate the price after “finding” something wrong with the property. These types of cash buyers are too good to be true, usually. They will lead you on, dangling a high price in front of you, only to take it back and demand a lower price.
House Flippers
If you’ve ever watched HGTV, you’re probably familiar with the term “house flipper.” These investors will purchase a property for cash to completely renovate it and sell it for a higher price.
They typically buy homes already in foreclosure sight-unseen and are looking to get the house at a very deep discount. And given the opportunity, they would only buy your home after a thorough inspection to make sure they can get a large enough return on their investment.
Trade-In Cash Home Buyers
There are companies known as trade-in buyers who will help home sellers free up some money in order to buy their next home. This is perfect for sellers who need to relocate quickly and don’t have time to wait and sell their current home before they can purchase a new one.
These companies will give the seller cash up front for the value of the property and then sell it, taking a percentage of the sale in the end. Since the price they can resell your home for affects how much they make, they tend to focus on higher-value homes.
Franchise Cash Home Buyers
You’ve probably seen bright yellow signs and billboards around your community stating in large letters that a company will buy your ugly house for cash – no matter the condition.
These are known as franchise buyers. They will make low cash offers on your home only to later flip them or hold them and use them as rental properties.
While they are ethical and could be helpful to some sellers, it’s important to be aware that they’re focused solely on profit and will therefore work as hard as they can to buy your home for as little as possible.
Individual Cash Home Buyer
Sometimes, when your home is being sold in the traditional real estate market, you’ll find a buyer who wants to purchase your Chicago home in cash. They often aren’t looking at your home as an investment opportunity, but as a place where they can live and make it their own. So they likely won’t be interested in houses that aren’t already move-in ready.
The Best Cash Home Buyer Option
While there are many types of companies that want to buy your home for cash, almost all of them are in it to make the absolute most money possible. Their only goal is to buy your home for as little as possible.
But Homes to Harmony is a different kind of cash home buyer. We’re a local friend-and-family-owned company in Bloomington, IL, that believes there’s a higher purpose than profit. While we do need to make money, we also want to make sure everything is 100% fair for everyone involved.
We’ll talk with you to learn about why you’re selling your home and your goals from the sale, and then discuss different scenarios and options to help you decide which cash offer is in your best interests.
We purchase homes in any condition and will always give you a fair price for the property’s value. And we can close in as little as 7 days!
Whether you are facing pre-foreclosure, going through a significant life event such as a divorce, or have inherited property, Homes to Harmony is here to help folks in the Chicago area find the best and most beneficial solution for selling your home quickly.
Get in touch with us today to get a fair cash offer on your home!