Each month in 2018, there were anywhere from 40,000 to 70,000 foreclosure homes in the United States. In Utah, that means that one home for every 3,660 houses is foreclosed.
The main reason homes are foreclosed is because homeowners can’t make the mortgage payments. Often, the homeowners can’t afford to make the needed repairs in order to sell their home. But there is a solution.
We buy ugly houses companies specialize in buying homes that aren’t desirable. And it can give homeowners the cash they need to avoid foreclosure.
Read on to learn how we buy ugly houses companies work and why it may be the best option for you.
How Does a We Buy Ugly Houses Franchise Work?
Companies that advertise “we buy houses” are in the market for homes that people have trouble selling, want to sell fast, or the home needs a lot of work to be sellable.
First, you contact the company and ask them to come to inspect your home.
Someone from the company will come and evaluate your property. If they like what they see, they will give you a written no-obligation offer. They will likely pay for some or all of your closing costs as well.
You can accept or reject the offer. Then the company gives you cash for your home and you are free of the property for good.
You might be wondering how the company can pay cash for your home. Typically, companies that buy ugly homes flip and re-sell properties.
They pay under-market value for a home, fix it up and sell it for a lucrative profit. These companies use cash from the proceeds of previous properties they’ve sold to buy the next home.
What is Considered an Ugly House?
An ugly house isn’t just about lack of curb appeal. Companies that buy ugly houses are interested in homes in less desirable areas of the city. They are open to homes that have foundation and roofing issues, mold, and water damage.
Homes are considered ugly if there are problems with renters or neighbors.
Sometimes, people want to sell their home fast because of an ugly divorce or painful memory.
If homeowners are facing foreclosure, that could be a reason to look for someone to sell their home to an ugly home company.
Benefits of Selling Your House to a We Buy Ugly Houses Company
There are many reasons why you would consider selling your house for cash to a company that buys ugly houses. Here are a few to consider.
1. It’s Easy and Fast
One of the biggest perks of selling your home to we buy ugly houses companies is that it’s a speedy and convenient process.
No hiring a real estate agent or cleaning or staging the home. You don’t even have to wait for potential buyers.
The company you choose will buy your home as is. In as little as seven days, your home could be sold. And you get cash for your property.
If you need cash right away, this is the best way to get it with the least amount of effort.
2. No More Decisions
Selling a home is typically a process that involves a lot of decisions.
Which repairs should we make to get the most money? what should our listing price be? The list goes on.
But, when you choose to sell your house fast to a home investor, all you need to decide is whether to accept their cash offer or not.
3. Guaranteed To Sell
With traditional real estate, you run the risk of not being able to sell your home. You may invest hours of prep work and get no offers on your property.
But home investor companies don’t care about the condition of your home. In fact, most house flippers will say the uglier, the better.
So, if your main goal is to sell the house, choosing to contact a we buy houses company is the way to go.
4. No Need for a Real Estate Agent
Researching and finding a real estate agent that you like can take a lot of time. Not to mention that the agents involved are expecting up to 6 percent of the sale of your home as their commission.
When you sell to a flipping company, you bypass a real estate agent. And you avoid having to pay real estate commissions.
5. Little Closing Costs
Most house flipping companies pay for all or most of your closing costs. They understand that you don’t want to use your profit from the sale of your home on substantial closing costs.
That is why they offer you a cash price that includes paying most or all of your closing costs.
Make sure you clarify what percentage of the closing costs you’ll be expected to pay before you sign an agreement with a company. That way you won’t have any unexpected surprises.
When We Buy Ugly Houses Companies May Not Be Right For You
Selling your home to a we buy ugly houses franchise is not right for everyone. Here are some things to consider to determine if this is the right option for you.
You Want to Make the Most Profit Possible
When you sell your home to a house flipping company, you can expect to get from 50 to 70 percent of the value of the home. Considering that ugly homes may be dilapidated and need major work, this amount makes sense.
But if you want to get the most money possible from the sale of your home, this may not be the best way.
Remember, real estate agents get a percentage of the final sale price of your home. So it is in their best interest to sell for as much as possible.
You might be able to get more money for your home by going with a real estate agent. Then again, some agents wouldn’t be willing to list your property in the current state. They might ask you to invest in costly repairs before listing.
But if you don’t have time to do repairs and wait for the house to sell, the quick and painless option of we buy houses companies may be your best bet.
You are at Risk of Falling for a Scam
Like with any industry, there are scammers that are looking to take advantage of unsuspecting people.
There are various real estate scams out there. Unfortunately, hundreds of people fall for them each year.
For example, a con artist may give you a verbal price for your home. Later, when you get the written contract that has the real price buried so that you don’t notice it is much lower than what the scammer told you in person.
Once you sign, you have a legal, binding document that can take a lot of money and time in court proceedings to repair.
Always read any written contract carefully. And make sure you choose a reputable company to sell your home to.
You Want to Control What Happens to Your House
When you sell your home to a house flipping company, the property is no longer yours. You give up all control to what they decide to do with it.
You don’t get a say in the repairs and who ultimately buys your home. You may be upset to find that in a few months, your ugly house has been transformed into a beautiful property that sold for beyond your wildest dreams.
But, on the other hand, you likely sold your home for cash because you didn’t have the time and money to make improvements to the home.
If you want to control how much money you get for your house and sell it for close to market value, you’ll have to invest time and money into your property. Unfortunately, not everyone has the freedom to do that.
If you aren’t able to upkeep or repair your home to get it in selling shape, then selling to flipping companies makes sense.
Thanks for reading. We hope this article has been helpful in helping you decide if selling to a we buy ugly houses company is right for you.
Remember, each person’s situation is different. You’ll need to weigh various factors including how quickly you need your house to sell and whether or not you can afford to do repairs.
Especially if you don’t want the headaches and time-commitments that go hand in hand with conventional real estate.
Selling your home to a house flipper can be mutually beneficially. You can get the influx of cash that you need. And the investor can improve the home in order to make a decent profit when selling it.
Are you wondering how much money you could get for your ugly house?
Contact us at Jon Buys Utah Homes to find out how much you can get for your home today.