As a seller, one of the many questions to pop in mind is ‘Is anyone willing to buy a house like mine?’ this is especially when you are already aware that the home you’re trying to sell is not actually the most eye-catching among those who are already in the market. Do not fret because there are actually entities who buy houses in any condition.
It is no secret that in the housing industry, the advertisement ‘We Buy Houses in Any Condition’ have come a long way in the marketing industry. The real question is, who are these people? To further know more about the people behind this program, and the process as to how and why they do it, here are some information you might want to look at.
The Who and the Why
These people are termed as Cash Home Buyers. These are real estate investors who buys houses – and by houses, meaning any house in general. The idea of some investors when purchasing a home is flipping them into a much upgraded one. Flipping, in layman’s terms, is basically turning something less in condition onto something more valuable. This is why they don’t really mind houses that has a lot of fixtures since repairing and transforming it is the point of purchase.
Aside from house flipping, some buyers also intend to make the home onto a rental one. Therefore, they often buy houses in bulk regardless of its condition. These houses, after renovations and making it appealing to home owners, get to be introduced in the market once again – this time, as an apartment.
How Do They Purchase?
Given that these are cash house buyers, the question often asked quite a few times is, ‘Do they really pay in cash?’ The answer is not actually as simple as yes or no.
Some real estate investors typically use money from their reliable money lenders (most of them are exclusively for them). The lenders or the middle men then finance their purchases. Technically, yes – they do pay in cash but no, it’s sometimes not theirs. It may be considered a loan but not that kind of typical mortgage. Unlike the traditional mortgage, since the lenders are their private middle men, the loan is given directly to them without the additional under-writings, appraisals, and inspections.
Given an introduction about how it works, some of these lenders actually do partner with these companies or investors. They often charge a higher interest rate that gives these house buyers the ability to purchase the home that fast. After all the revamping, investors later on refinance it using the classic mortgage to make it rental – thus, paying their exclusive middle men back their cash with inclusion of interest. Over time, once these buyers had proven their reliability of payment records, the lenders become more trusting to lend them exclusively.
‘Do they really pay in cash’ In the perception of a seller, it is. The process is typically a similar to paying direct cash. As for the buyers, it may appear both yes and no; yes because it is a purchase via cash on hand, and no because it is not their money to begin with.
To sum this information, these cash house buyers purchase any home at any condition. This is actually beneficiary on both parties since the seller can sell his or her home regardless of spending out of the pocket money for renovations and the buyer gets to refinance it and turn it to an investment. What’s even better is that it’s lawful and safe, provided that the house buyer you are willing to sell your house for is legitimate and has certified credentials.