In many towns and cities in Utah it seems like you can’t go anywhere without seeing those ugly “We Buy Houses” signs. But is what promised on those signs really too good to be true? A scam? Or a lucrative way to get out from mortgage debt? We look at house buying companies and what you don’t know may surprise you.
Go to any major metropolitan city in the country and they’ll seem almost ubiquitous. “We Buy Houses.” “We Buy Ugly Houses.” “We Buy Houses For Cash.” “We Buy Houses Fast.” Large billboards. Hand drawn signs. Are they legitimate? Illegal? Effective?
It might surprise you to find out that home buying companies are not necessarily a new trend. In the not so distant past, they were referred to as “equity purchase companies”. These are fast cash buying companies who make much of their money buying out from distressed sellers; sometimes for the purpose of house flipping, other times simply for seeing an excellent buy in a seller’s market. True, their advertising methods might seem heavy handed; but who can afford not to be in the real estate industry?
No one likes seeing their dreams of being a homeowner dashed. But when you’re saddled with circumstances that aren’t within your control, you have to learn to think quickly. In 2018, the average national mortgage debt per borrow was a bit more than $205,534 (source). While mortgage debt many times is necessary and “good debt” for many, it isn’t necessarily a pretty picture when you’re in a situation where your circumstances require you to sell the house.
Home buying companies might seem like a classic case of “too good to be true.” But the truth is… they’re perfectly legitimate. And they’ve helped hundreds of thousands of distressed homeowners get out of mortgage debt quickly and efficiently. Here’s three of the biggest surprises that may have you reevaluating home buying companies who use those ugly we buy houses signs:
1. Selling Direct To Home Buying Companies Is A Time Saver
Anyone who’s ever had to deal with both realtors and mortgage financing companies knows the process can take weeks—if not outright months. Selling directly to a home buying company not only is a convenient option if you’re in need of quick cash; it’s also a time saving one, with an average approval time of approximately 2-3 business days (in some cases, virtually overnight.) In comparison, the average turnaround time from a traditional lender is well over two months.
But it’s not just a question of time. It’s a question of convenience. Most house buying companies offer instant approval; with the added bonus of many companies offering the application process online. With flexible financing solutions and a willingness to work with sellers to provide mortgage payment options, more and more individuals are are choosing to forego traditional realtors to embrace what is a much more promising alternative.
2. Selling Direct To Home Buying Companies Is Ethical
While there’s no doubt some home buying companies that are specifically a scam, the vast majority of them are entirely legitimate and operate through strict legal protocol. Learning to spot unethical business practices in home buying companies is really no different than learning to spot unethical business practices in other companies, including:
- Registration with accredited consumer protection organizations such as the Better Business Bureau
- Having an online presence, including both their own website and promotional materials
- Providing a well documented contract (which they should be willing to discuss the finer details of with you)
- Providing well documented customer testimonials and reviews
- Ensuring that they have a permanent and physical office presence where they can be reached (instead of merely conducting transactions over the phone or online)
3. Selling Direct To Home Buying Companies Can Be Lucrative
Despite what many realtors claim, you can easily recoup up to 85% of your house’s current market value through home buying companies. No, you won’t see a complete regain; but when you’re in a pinch, a well maintained property can bring you close to current value wih cash in hand, with a prompt close. This speedy and effective house busing process can make all the difference in the world when you’re waiting for the right buyer to come along—sometimes for months on end. And this is why the “we buy houses signs” in Utah work so well by increasing awareness.
Let’s face it. We never know what life is going to have in store for us; and we don’t always know when owning a home will be more of a burden than a privilege. If you’re facing debt, preforeclosure in Utah, liens or life changes, you don’t have to go it alone. Get a cash offer today by dropping us a line at gary at garybuyshouses.com or call 801-382-9199