Selling your house can be challenging. You have to say goodbye to a place you called home for so many years and made precious memories. Aside from the emotional attachment, selling a home comes with many technicalities, such as finding a suitable real estate agent, getting home inspections, making repairs, and arranging open houses.
To avoid these issues, consider selling your house to a home-buying company like Oak Street Properties in Arizona. Here is a guide explaining how home-buying companies work and other details you must know before selling to them.
How Do Home-Buying Companies Work?
Before you can sell your home to a home-buying company, they must complete a particular process to finalize your sale:
- First, you must get in touch with the home-buying company and give them a quick rundown on the house’s condition, address, and when you want to sell it.
- The company will offer you an initial cash offer based on some desk-based research.
- If you accept the offer, the home-buying company will conduct a complete survey of your property. Typically the survey is done by a local real estate agent the company hires.
- If the house meets its minimum requirements, the home-buying company will offer you a formal offer. This given value is usually close to the initial proposal of the company. When the survey uncovers structural damage to the property, there is only a difference between the values. You can always walk away if you want a more agreeable offer.
- The Formal offer will be a written agreement, and once you comply, you will fill out some light paperwork. The company’s agent will assist you through the paperwork. You can choose the date you want to finalize the sale and move out.
- After the sale is completed and finalized, the home-buying company will transfer the cash into your bank account within a week.
Selling to a home-buying company reduces the work and stress of the home-selling process. You no longer have to put time and effort into preparing your house for listing. You can wait until you start receiving offers, and then start negotiating. After finalizing the deal, you still have to pay retainers and legal fees and fill out lots of paperwork to transfer the property. In contrast, selling to a home-buying company only has a few steps and requires minimum effort.
Things to Know Before Selling to a Home-Buying Company
Selling to a home-buying company can have many advantages. It makes selling homes convenient and fast. If you also want to avail these advantages and are looking to sell your house to a home-buying company, here are a few things you must know.
1. Value Offered
Home-buying companies will purchase your house in any condition and provide you with a fast sale and upfront cash. To compensate, the value they offer is 40% to 60% lower than its worth in the market.
Up front, this price setting may seem unfair, but remember, when selling to a home-buying company, you do not pay many of the additional costs you would when selling a home, such as paying for a real estate agent’s retainer, house inspection charges, repair and renovation fees, and home staging.
If you still need more than the value offered, you can always try negotiating with the company to increase their offer. However, many companies are not open to negotiating.
You can also increase the house’s value by tidying it up. Repairs are expensive and take time, but you can quickly declutter and deep clean your space. When the home-buying company’s agent comes, your home will be in its best condition, and they are more likely to offer you a higher value.
2. When To Sell
Since home-buying companies only offer part of the value of the property’s actual worth, only consider them as a last resort. Most people only sell to them when they immediately require money. For example, they may require immediate funds to pay for their or a loved one’s emergency medical procedures or need to repay loans quickly.
People also prefer selling to home-buying companies when they do not have the time to go through the lengthy and tedious process of selling a house. Some people have to relocate on short notice, while others need the money for a divorce settlement. They can not afford to have the property on the market for months and negotiate with the buyers before closing the deal.
Making repairs to a house can be expensive. Even if renovations and repairs bring in a better value for the home, many people are unwilling to go through the process. Fortunately, home-buying companies are open to buying homes in deteriorating conditions. Some will even buy houses that have suffered fire damage.
3. Additional Perks
Some home companies go above and beyond in helping homeowners sell their homes. After you have made a deal with them, some companies allow you to relocate to a different house. One way they do this is by trading. They sell your home for you and help you secure a new property while keeping a percentage of the sale for themselves.
Other times, they provide movers and packers to help you comfortably move to your new house. With these additional perks, selling to a home-buying company can become even more convenient and offer a better value.
A home-buying company can be the perfect option if you want to sell your home quickly and with little stress. They are ready to buy homes as it is with no repairs, and since you are no longer putting in extra effort, you can complete the sale in a fraction of the time of a traditional one.
The information above will help you give an edge over the home-buying company, and you will be able to receive a beneficial deal.