When you think of selling your home, you most likely envision enlisting a qualified real estate agent to help you find an ideal buyer — perhaps a first-time buyer looking for their first investment property, a family looking for bigger space, or any other variation that fits the stereotypical home buyer. There are other alternatives to the traditional way of selling property that you should be privy to and one of them is selling your home to a home buying company for cash. This option offers many benefits for sellers and it’s best to educate yourself so that you can make an informed decision prior to selling your New Jersey home.
What defines a house buying company?
A house buying company is defined as a company that buys property cash from sellers. A seller might choose this non-traditional way of selling because it’s much quicker and simpler than selling through an agent (a process that involves negotiations, repairs, showings, waiting for a mortgage to be approved, and a longer closing period).
The types of home buying companies
Home buying companies differ in business goals, size and the areas they purchase houses in. Some of these companies buy homes in any condition, from distressed homes to those that are in good condition, and others prefer homes that only require slight repairs. Here are the types of home buying companies you should know about:
These types of companies are becoming more prominent in the real estate industry. They buy homes for cash quickly, usually using technology and an algorithm to make cash offers to sellers. The home is then sold by the iBuyer at a higher price for profit.
This form of house buying involves investors purchasing distressed properties at low prices, renovating them so that they’re move-in friendly, and then selling them for a profit.
A trade-in company buys a home to free up money for a seller to purchase another one. These companies sometimes enter into an agreement with sellers that allow them to rent out the home until the sale on their new home goes through. Some of these companies include lenders and brokers who purchase homes to allow sellers to make competitive offers elsewhere.
Franchise cash buyers
Franchises have various companies across the country. They focus on purchasing homes in any condition, renovating them, and then selling or renting them out for a return on investment.
Buy and hold investors
These types of investors purchase property with the intention of renting it out. They will usually spend money fixing the property to make it attractive to tenants after they’ve purchased it.
The benefits of selling your property to a home buying company
You’ll receive a cash offer
Selling your house to a home buying company means you’ll get a cash offer as soon as the deal closes. This is beneficial if you need liquidity and are experiencing anything from bankruptcy, divorce, moving, and more. The flexibility that a cash offer presents is unmatched.
You experience faster closing times
Unlike the traditional route of selling your home, selling to a home buying company results in much quicker closing times. The average selling time is 7 days. This is because you’ll be skipping all the formalities associated with the traditional way of home selling.
You can sell the house in its current state
Selling a home through an agent means the potential buyer will likely request certain repairs to be done. A home buying company is highly likely to purchase your home as is, which saves you a lot of money.
You’ll receive reasonable rates for the property
The valuation you’ll receive on your property from a home buying company will be accurate and oftentimes, you aren’t expected to pay for it. Added to this, most property buying companies offer at least 60 to 85% of a property’s market value.
You can save money and time
No real estate agent means no commission! You’ll also save money on marketing, home staging, and renovations. There’s also no chance of the buyer backtracking and stepping out of the deal because of how fast home buying companies purchase homes cash.
Using the information above, you can make an informed decision when deciding to sell your home with a home buying company like House Buyers New Jersey. Find out how we can help you sell your New Jersey home here.