Top 5 We Buy Houses for Cash Companies in Austin (2021 Rankings)

The best We Buy Houses companies in Austin | How they work | Costs | Pros and cons | Alternatives | FAQs

When you need to sell your house fast or can't afford massive repairs, selling to a We Buy Houses for Cash company may be your only option. In Austin, it can take 71 days to sell your home with a traditional agent. Compare that to a cash buyer that can complete the transaction in one to two weeks, with no out-of-pocket expenses.

Unfortunately, you’ll get (at most) 70% of your true home value from a We Buy Houses company. Many sellers can make far more on their home sale with a different approach.

For example, if you have an extra two to three weeks to sell, Clever can connect you with a full-service real estate agent with a proven track record of selling homes in your area quickly and for top dollar. Clever also pre-negotiates lower commission fees of 1% or $3K with its network of agents.

Top Austin We Buy Houses companies

We've compiled objective, public information from cash buyer companies in Austin to help you compare options and make an informed decision.

How We Buy Houses Companies work

To buy homes quickly and make a profit, most We Buy Houses for Cash companies in Austin use the same process:

1. A homeowner submits information about their property, and the cash buyer decides if the home fits their criteria for a profitable investment. If the house fits the investor's criteria, they may give the seller a rough estimate of what they'll pay.
2. A representative from the company will evaluate the property and, based on the repair costs and resale value, they'll make a cash offer.
3. If the seller accepts, closing happens quickly; there's no need for inspections, appraisals, or financing approval.
4. The Austin We Buy Houses for Cash company makes repairs and sells it, earning a substantial profit.

Compare this speedy process with the traditional home selling process:

1. If your home needs extensive repairs, it can take months (and tens of thousands of dollars) to complete.
2. In Austin, a home typically spends 26 days on the market before the seller receives an offer.
3. The closing process can take an additional 30-45 days if the buyer applies for a traditional mortgage. You'll have to deal with appraisals, inspections, and further negotiations with the buyer.
4. If financing is denied, or another issue occurs with the buyer, the house has to go back on the market and the cycle starts again.

Austin We Buy Houses companies pros and cons

We Buy Houses for Cash companies are an extremely beneficial option for certain sellers like:

• Homeowners facing foreclosure
• People who've inherited unwanted property
• Homeowners who can't afford extensive repairs
• Homeowners who need to sell fast, due to divorce or other issues

Pros of using We Buy Houses companies

• Cash offers mean speed and certainty: The longest portion of the home selling process involves buyer financing. Cash buyers don't need to go through this lengthy process, though, since they have access to immediate capital.
• No need for repairs: These companies make lower offers to account for repair costs. This solves the difficult problem of finding a buyer if you’re selling as-is on the open market.
• Lower costs: Selling a house is expensive. There are associated costs like concessions, carrying costs, and commissions that reduce a seller's profits. We Buy Houses companies allow sellers to avoid those costs.

Cost to sell to a cash buyer vs. a traditional sale

Cons of using We Buy Houses companies

• Take-it-or-leave-it offers: There is no negotiating with We Buy Houses for Cash companies. Their representatives evaluate your home and necessary repairs to arrive at a price. If you disagree, your only option is to walk away.
• Predatory tactics: Often, homeowners who consider using these companies are facing difficult life situations. Some "opportunity investors" take advantage of these situations and pressure sellers to accept low offers.
• Lower offers: Even by avoiding other selling costs, selling to a We Buy Houses company still leads to a lower take-home amount because their offers are never more than 70% of after-repair value (ARV).

Consider an example where the home needs 10% of its ARV in repairs. If you sold to a cash buyer, they would deduct that from their offer. If you sold with an agent you could cover that 10% in a variety of ways (by offering lower price, repair credits, etc.).

Alternatives to We Buy Houses companies in Austin

We Buy Houses for cash companies are never your only option. It's important to weigh all important factors (like time to sell, take-home amount, and convenience) before making a decision.

Let's look at a breakdown of how much a seller in Austin could walk away with through three different options: selling to a cash buyer, selling with a traditional realtor, and selling with a discount real estate company like Clever.

We'll use the median listing price in Austin, which is $499,000, and relevant selling cost rates (closing costs, repair costs/credits, carrying costs, etc.)

Austin home selling cost breakdown

As you can clearly see in the table above, We Buy Houses companies help people quickly sell their homes. However, your other options are much better in the long run, so if you have time, using a We Buy Houses company is almost never the best option.

Frequently asked questions about Austin We Buy Houses companies

How much will We Buy Houses for Cash companies pay in Austin?

As real estate investors, cash buyer companies need a buffer that increases their chances of a profit. This is where the 70% rule comes in.

Essentially, the 70% rule says a cash buyer shouldn't pay more than 70% of the property's After Repair Value (ARV) — what they hope to sell the house for in a fair market — minus repairs. This gives them some wiggle room if the house's condition is worse than suspected or it takes longer to resell the home.

Are We Buy Houses for Cash companies scams?

Most cash buyers are legitimate companies that have been buying homes in their communities for years. But there are bad apples.

Don't be taken advantage of.

Make sure the offer you receive is legitimate and worth your consideration:

• Never sign a contract without reading it or when you feel pressured to do so.
• Check online reviews of the company. Note that many of these companies have similar names, so double-check that you're looking at the right one.

Additional resources for home sellers in Austin