Practically every neighborhood in the U.S. features at least a few “Cash for Houses” signs, or similarly worded posters on telephone poles and elsewhere. (See photo above).
The target market for such advertising consists of homeowners who want out of a mortgage that they still owe money on. For whatever reason, usually a poorly thought out one, sellers call the phone number on the sign and get cash for their homes within a few days. Sadly, sellers typically get only about 65 percent of the market value of their homes in these transactions. A recent article in Bankrate took these buyers to task for bilking desperate sellers and giving a bad name to the real estate market in general.
Why you should avoid these buyers
- You will get around 65 percent of your home’s value in the transaction, maybe less.
- They’ll pitch you a lowball offer that might be just enough to pay off what you owe on your mortgage.
- Cash-for-houses buyers rely on sellers’ desperation. Yes, you will get cash rather quickly, but by waiting just a bit longer, and using a Realtor, you can get a much better price.
- Many of these buyers charge astronomical fees for “application processing,” and the like.
- In almost every case, sellers can get thousands, even tens of thousands, more dollars by teaming up with a licensed Realtor and doing things the right way.
If you want to sell your home, do it the right way. Hire a professional Realtor who can guide you through the process and get the best price. Even in a difficult market, you can still get close to the market value in a fair transaction. Avoid the snake-oil purveyors who offer you a quick buck. The “Cash for Houses” folks are a mistake waiting to happen. Do the right thing and call a Realtor if you want to sell your home.