What’s the matter with him "We Buy Houses" signs?

Have you noticed those billboards all over town? The ones that say “We buy houses”, “Cash for houses”, “Sell your house fast” or some variation along with a phone number? They are everywhere. What’s the deal with those signs? Why do people want to pay cash for houses?

Well, most of those signs are put up by real estate investors. We pay cash for houses as investments. We buy homes below market value, fix them up, and sell or rent them for a profit.

You may be wondering why anyone in their right mind would sell their home for below market value, and that’s a good question. In reality, there are many reasons why people may want to sell a house quickly. Perhaps they inherited a house far from where they live. Many people in that situation don’t know where to start selling their property, and the prospect of selling it in a matter of weeks for cash is very appealing. Some other people who might want to sell quickly for cash include: those facing foreclosure, divorcing couples, weary homeowners, and people who don’t have the time or cash to do the repairs themselves.

In a traditional real estate transaction, you would list your home with a real estate agent, make any necessary repairs, prepare the home for showings, and put it on the market. Depending on the market, your home could sell for anywhere from a month to over a year. You would have to deal with potential buyers constantly touring your home, and when you finally got an offer, buyers will use property inspections and appraisals to try to lower the price further or make repairs before closing. After it’s all said and done, you’re paying closing costs (like escrow fees, title insurance policy, and home warranty), realtors’ commissions (usually 6% of the purchase price), holding costs during the time your home was for sale. market (mortgage payment, home insurance, property taxes, utilities and maintenance). Often you will also have to pay for professional photography or staging up front.

Once you add up the costs, time commitment, and hassle, it’s no wonder many people are looking for other options to sell their home. For many people, those “We’re Buying Homes” signs are the breath of fresh air they’ve been looking for. While not necessarily the best option for everyone, if you crunch the numbers and consider the value of your time and sanity, it often makes a lot of sense to see if a cash offer from an investor might work for you.