Can Cash Home Buying Companies Be Trusted?
Virtually every street corner in the Upstate is littered with "bandit signs" - those plastic 18x24" signs with metal stakes; 90% of those signs say "we buy houses" the remaining 10% is a mix of "palm reading for $10," "lawn care" and my favorite, "we wash houses". Are there really that many REAL house buyers in Greenville? And the truth is... there isn't. Here's the skinny on who is buying houses, who isn't and what the real buyers have to offer.
NATIONAL HOME BUYERS
Due to the fact that Greenville, Simpsonville, Travelers Rest, etc. have been consistently named some of the best places to live BIG national hedge funds have decided to put a few million dollars into the Upstate by buying up our real estate. These companies don't really understand the local market and rely on the "strength of numbers" to make sure their purchases average out to be profitable for them. These companies are real, buy plenty of homes and are a viable solution - but they are 100% numbers driven. And, they buy at rock bottom prices. They run the home through their sophisticated algorithms to come up with a "buy" price. Many add fees on top of those prices and all of the offers are contingent on a firm quote from a contractor. This can significantly change the contract price.
Unfortunately, most of those bandit signs are not placed on street corners by true investors, instead they are placed by "wholesalers." Wholesalers don't typically have the ability to purchase a home. Instead they tie up a home with a contract in hopes of reselling that contract to someone else for a profit - sometimes a FAT profit. Legally, there's nothing wrong with wholesaling, but ethically... there are issues with tying up somebody's home with false promises of a purchase and no ability to actually make the purchase. BEWARE of contracts that ask for lengthy inspection periods and put down no money. Real investors can close in a couple of weeks and complete their inspections in days.
LOCAL HOME BUYERS
This is one of the rare cases where the local guy has a distinct advantage in service for the seller. The small, local investors should have no worries of the big national companies. Because, unlike retail where a hairbrush is the same in Boston, MA as it is in Greer, SC, houses are completely unique. Every market is different. Every neighborhood has nuances to it that completely change values. There are neighborhoods in Greenville where homes on one side were built by a well-known, high-end builder, homes on the other have questionable craftsmanship.
Many homeowners really do not understand the true costs involved when selling a property.Only a local investor would be able to know that they can pay more on the right side of that same neighborhood. Another unique benefit to local investors is a tailored solution. "One size fits all" doesn't apply to real estate. Every situation is different. When seller and buyer sit and discuss ALL options beautiful things can happen (yes there's more than 1 way to sell a house). A local cash home buyer can help provide the necessary information when comparing your home selling options.
Now, not all local buyers are saints! There are good, there are bad and unfortunately, there are some evil ones too. So, just like with any purchase, make sure to work with an established, reputable company that will do right. By googling such phrases as "trusted greenville home buyers" you can find information and reviews on established and professional local cash home buyers.
A good local house buyer can present you with lots of good options and possibly be the answer you are looking for.