Whether you’ve seen it on a billboard or got a flyer in the mail, “We Buy Houses!” companies are aggressive at marketing their promise to pay cash for homes in any condition. Selling quickly and walking away may look attractive to some sellers, but you should know what you’re getting into.
Fast-cash buyers often prey upon the desperate, those who want to avoid foreclosure or people who inherited a home they don’t want to deal with. Maybe you just want to sell, without making cosmetic improvements to your home or having to keep it clean for showings. Or it’s time to move into a retirement community and time is of the essence. These are all reasons that a homeowner might call a “Cash for Houses” company.
But do companies really make legitimate, fair market offers? Will you lose money if you sell to a fast-cash buyer? Here’s why you should think twice about calling a “We Buy Houses for Cash” company, and talk to a discount realtor before signing their contracts.
Are “We Buy Houses for Cash” Companies in Idaho Legit?
These companies are licensed and registered and will make a cash offer for your home, but there are some shady characters in the business.
A company that’s a scam, or operating unethically, will only have a phone number where you can reach them and won’t disclose a business name. Be cautious of companies with no online reviews, or only reviews which praise them, as even the best business will occasionally have a dissatisfied customer.
The fast-cash buyer will begin by asking you the amount left on your mortgage during the first phone call. They’re determining how little they can offer for your house. If you tell them what’s left on your mortgage, don’t be surprised if their offer comes in at exactly or just slightly higher than what you owe.
There is a high risk that companies which demand that you pay processing and other fees up front are scams. This is a sign that they’re not operating as transparently as one would like. Keep in mind that legitimate realtors don’t make anything until they’ve performed the service — selling your home — and see it through to closing.
These companies make their money by buying low and selling high. Any offer they give you will only look out for their best interests.
How Much Will a Cash Buyer Pay for Your Idaho Home?
While cash buyers always claim to offer fair market value for your home, according to their terms they may deduct fees, or deduct from their fair market value for repairs. This is a tactic to justify an extremely low offer, as no one can accurately measure the amount and cost of repairs without seeing the home, hiring a home inspector, and getting bids from contractors.
Sellers can lose significant amounts of their home’s equity if they go with a cash for houses seller. In Idaho, the median home value is $207,100. A cash for houses buyer will likely only offer around $165,680. You will lose over $40,000 of equity if you sell to them.
When you’ve crunched the numbers, it doesn’t make much sense to leave that money on the table.
Idahoan iBuyer and Cash Buyer Reviews
Nationwide companies like “We Buy Houses for Cash” operate franchises in almost every major market. They’d be an easy choice, but they don’t have great reviews.
We Buy Boise Homes is a local option that targets those facing foreclosure. They’ll make a quick cash offer and promise to close quickly. I Buy Houses Boise is another option. They buy homes in and around the Boise area and process the closing at local title companies. It’s impossible to find reviews for these companies other than the glowing testimonials they have listed on their websites.
We Buy Ugly Houses is another national company which has franchises in Idaho. Unlike other cash buyers, they will walk through your property before making an offer. It’s a no-obligation, cash offer, but you can be sure that they’ve built in a hefty profit for themselves after fixing up and reselling the home.
“Sell Your House for Cash” vs. a Full-Service, Local Real Estate Agent
While you’ll sell your home with “sell your house for cash” buyer, you won’t make a profit and you could lose equity. Top real estate agents can often sell your home fast, too. They have robust networks to market to, contacts within their brokerages, and may already have a buyer when you contact them.
Agents often sell homes for as much as 125% of their fair market value. It’s a guarantee that you won’t get that from a fast-cash buyer. List your home with a flat fee agent and their fees will be much less than those a cash buyer deducts from their offer.
To find out more about selling your house in Idaho in a jiffy, check out our tips.
Before agreeing to sell your home to a cash for houses buyer, fill out our online form to be connected with a Clever Partner Agent for a free, no-obligation consultation. They’ll show you can you sell your home quickly, for the best possible price, and save thousands on commissions.