These days, it feels like everywhere you turn there is a cash buyer company advertising that they buy houses. From marketing posts on social media to posters, flyers, signs, and billboards that are widely spread nearly everywhere you walk or drive, it can easily begin to feel like your town or city is infested with these so-called “Cash Home Buyers”. As such, you may begin to wonder what it is these companies actually are, and what they do. And if your interest isn’t purely education (because you’re looking for a way to sell your house and are wondering how a cash buyer can help you), you may also be curious about who the best home buying companies are, and how to determine which cash buyer is real (vs scammers) from the large crowd of ads out there.
Well, in this blog, we are going to help you answer all of these questions and more by taking a deep dive into cash home buyers. This will reveal who the cash home buyers are in Minneapolis MN then help you determine how to sell your house to an investor. We’ll also outline all the pros and cons associated with this option, and show you how working with such companies can help you sell your house fast. Once we’re done, we’ll be sure to have dispelled any and all cash buyer misconceptions that you may have.
Everything You Need to Know About Cash Home Buyers
Read on for our full Guide to Understanding Cash Buyers in Minneapolis MN.
Cash buyers are one of today’s newest and most popular home sale options. However, this does not mean that they haven’t always been around, or that they’re now the conventional method of home sale. For most home sellers, be it in Minneapolis MN or anywhere else in the country, the traditional method (hiring a real estate agent) is still common practice, and for good reason too. However, with the advent of the internet (not to mention all the benefits that are experienced with cash buyers) this alternative method of home sale has really begun to take off in the last decade.
While traditional home sale is the oldest method by which sellers enter the real estate market, it hasn’t been the only one throughout history. Even 20-30 years ago (way back when in the 90s), quite a few homes were sold without the aid of a real estate agent via alternative options such as through an auction or FSBO (For Sale By Owner) listing. And yes, cash buyers existed back then too. However, it is only now that they’ve really begun to take off since the advent of the internet.
As online platforms such as search engines and websites have developed over the last few years to being humanity’s most widely (and commonly) used method for gathering information, cash buyers have become more and more popular. These days, a company that only used to be able to buy a few houses per year (depending on home many people see their flyers and walk into their offices) can now purchase hundreds a year thanks to online portals that give them access to millions of potential customers they have available as people who use the internet. So if you’re wondering why it is that there are so many cash buyers now (and why you’re hearing about these types of businesses now), there’s your answer.
However, all of that likely doesn’t cover your main question, which is what exactly are cash buyers and how can they help me sell my house for cash. So let’s get into that in the section below.
What is a Cash Home Buyer?
Looking for the real deal on cash home buyers? Well, to put it simply, a cash home buyer is basically an individual, or company, that buys homes directly from home sellers (without the use of a real estate agent) and that pays cash. These types of real estate investors or companies will purchase your property quickly and for a fair price, all while requiring you to invest none of your valuable time and money at all in things such as hiring real estate agents or making property repairs. So if you’re looking for a way to sell your house that will save you money, this is a great option.
All you will need to do is simply contact them and submit your property’s details. Then they will get back to you with the highest possible all-cash offer they can provide, which you will be able to close on upon your earliest convenience, that is if you choose to do so (there are no obligations if a cash buyer gives you an offer).
But Are These “We Buy Houses in Minneapolis Companies” Credible?
Now that you know what cash buyers are, you may be wondering, “How do I know if the local house buying companies out there are honest and credible?”
This is a good question. If you’ve only recently heard about cash buyers, you may be wondering whether you can actually trust them and whether you will get a fair price. In addition to that, you may also be curious about what to consider when comparing the credibility and reliability of your local Minneapolis home buying companies. Well, if so, we are going to give up a few answers about these particular things below.
Can You Trust Cash Buyers?
Buying and selling houses is a valid and respectable profession that can help communities in many ways. But just like any other line of work – a minority of the local ” We Buy houses”, or ” Cash for Home” companies that you’ll come across, are the fraudulent type that make the rest of us look bad.
Out there among the chaos, there are people who are really great. There are ethical, trustworthy folks who seek to better your life and improve your neighborhood.
But there are also shady, dishonest people who put money ahead of their clients well being. These people would even sign a contract to sell their own grandmother with one hand while stabbing you in the back with the other – as long as they turn a profit! Yes, these people really do exist.
If you want to be able to tell the difference, there are a couple of things that you can do to avoid these “shady house buyers” and ensure that you only work with honest, ethical, and reputable local companies who will buy your house for a fair all-cash offer and close on your schedule. These include:
Asking the Right Questions:
When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and honest.
- Ask open-ended questions like:
- How do you help your clients?
- What do you do for the communities in Minneapolis?
- Can you tell me more about your services?
- What aspect of your business makes you the proudest?
- How would you describe your investment philosophy?
- What assurances do I have that you’ll close on my house like you say you will?
Considering Tell Tale Signs:
Next up, you should also be sensitive toward tell-tale signs that indicate shady business operations and view these as potential red flags. These signs include:
- “Kitchen table closings”: If a property buyer tries to get you to sign the deed (ownership) of your house over to them at your house, rather than at a professional office like a closing attorney or title company… be leery. Most reputable house buying services will perform the actual closing of the sale at a neutral 3rd party location (like a title company). This ensures that everything is done above board.
- Pressuring you into a fast closing: If a house buyer tries to pressure you into selling your house before you’re ready and says that you have limited time to make your decision, be leery. Most reputable house buying services will make you an offer, and that offer will be on the table for at least 2-7 days (minimum). This gives you time to consider your options, and make an educated decision based on your specific circumstances. The reason reputable house buying services like ours at FastPath Home Buyers do place deadlines on our offers, is because the market changes often. Values for properties can change from week to week. Also, we buy multiple houses a month. When we make you an offer, we’re assuring you that the cash to purchase your house is ready and we’re prepared to reserve that cash for you, for several days. If you feel the offer isn’t a fit for you, then we’ll assign those funds to help another seller with their home sale.
You should always remember that most scammers are looking for a quick score and not an in-depth interview. Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.
True investors who run honest and ethical cash buying businesses work to build long-term businesses based on relationships and community development. As such, they’ll be as open, honest, and transparent with you as possible. So when you’re looking at one of the “we buy houses in [market] companies“… never be afraid to ask questions!
The Truth About What Reputable Minneapolis House Buyers Are Doing
Lots of people think of house-flipping as a get-rich-quick scheme. However, this is far from the truth when it comes to reputable cash home buying companies like our very own, “FastPath Home Buyers”. This mentality is fueled by silly “reality” shows that amp up the drama because the reality of what we do is pretty boring.
Here is the truth about what reputable home buying companies are really doing:
- Helping folks improve their lives by accessing their situation and providing the money that they need right away. People often need the cash from their houses fast, when facing strenuous circumstances. Maybe there are some unexpected medical expenses, or a seller needs to relocate quickly, to live closer to family. We can make that happen in just a few days. Best of all, we deliver peace of mind (You face none of the stresses you would with an agent.)
- Helping sellers get rid of burdensome properties without the hassle of having to list it with a broker, then wait 3-6 months for a sale.
- Creating local jobs. We hire plumbers, contractors, electricians, brokers, title reps, loan officers, administrators, and many other folks along the way. The average real estate transaction involves 86 people from start to finish. The added benefit with us comes in the fact that we work with local companies. Our investments help create real jobs for people around Minneapolis MN.
- Buying US products. We spend tons of money on materials that are made right here in the USA. This fuels our timber mills, factories, supply shops, distribution centers, and more. The US economy depends on steady improvement, and that requires investment from its citizens.
- Increasing the value of Minneapolis neighborhoods. When we improve a house, we’re helping to increase the value of the entire community. We often repair abandoned and neglected houses, turning them into beautiful homes for families. That activity strengthens Minneapolis communities.
- Increasing the tax base. When a new buyer takes over one of our properties, they’ll pay a higher tax rate based on the new and improved value. Those taxes go to pay for our schools, fire, police, libraries, streets, and other valuable pieces of infrastructure. Again, this improves our neighborhoods.
From the list above, it’s clear to see that trustworthy and reputable cash buyers aren’t always in it for the money. As such, if you’re considering potential options and looking for signs of a reputable home buying company, you should consider the points above and ask yourself whether the company you’re considering does those things or not.
Pros and Cons of Selling Your House to a Cash Home Buyer
Last, but certainly not least, we are going to focus on some of the pros and cons you’ll likely come across if you choose to sell your house for cash to a cash buyer. This list will show you all the reasons you should consider a cash offer, instead of selling your house with a real estate agent. So if you’re wondering whether this method of home sale is a good idea or not, read on to find out…
Here are a few reasons why selling your house with a Cash Buyer is one of the best decisions that you can make:
- Secure All Cash Payment: professional cash buyers pay you upfront and in Cash! As such, you won’t have to worry about your buyer falling through due to mortgage loan problems. From the moment you accept the company’s offer, your deal will be secure.
- No Cleaning or Repairs/Upgrades: most cash buyer companies accept houses in “as-is” condition. As such, you won’t have to worry about having to invest in expensive repairs before you can sell your house, or even having to sweep the floor or do the dishes.
- No Advertising Costs or Efforts: cash buyer companies are buyers that will come directly to you. For this reason, you won’t have to worry about having to invest in expensive marketing strategies to attract traditional buyers. Simply reach out to a company via their website (e.g. visit FastPath Home Buyers to sell your house directly to our company), and you’ll be able to move straight into sale negotiations.
- No inspections or appraisals: when you list your property for sale in “as-is” condition on the MLS, regular buyers may require you to pay for expensive inspections or appraisals, just so that they can be made aware of all your house’s issues before they accept it. However, with cash buyers, you won’t have to worry about any of this. These types of real estate investment companies will accept all of the risks, and purchase your house in true “as-is” fashion. So if they find something else that’s wrong with your property after purchase (that you may not have even been aware of), you won’t have to worry about them coming after you legally.
- No closing costs: With cash buyers, you won’t have to stress over arriving at closing with enough money to cover closing costs. These companies will take care of everything. As such, the agreed-upon amount is exactly what you’ll get at closing. So overall, a direct sale to a cash buyer will generally save you money.
- Fast Closing: And finally, unlike when you sell your house with a real estate agent or through any other home sale method, there is security with a cash buyer. Cash buyers will be able to give you a definite date for closing (which is usually in as little as 7 days)
However, there is one main drawback with selling to a cash buyer:
- In general, a cash offer might be slightly less money in your pocket than other options on the list. But in exchange, you get a sure sale and it is the least amount of effort for you with zero risks. So it is something to consider….
So there you have it. Here is our full guide on understanding cash home buyers in Minneapolis MN. If you’re looking for more information, or are seeking a cash home buying company that you can trust, reach out to our company today.