At one point or another, you’ve probably seen a large sign on the side of the road that says “We Buy Houses for Cash!”. If you’ve ever given it a second thought, you might be wondering how companies do that and who exactly is buying the houses. Well, to answer your question, companies that “buy houses for cash” used to be called equity purchase companies. Now they’ve rebranded themselves to be iBuyers or investors.
People will typically sell their homes to these companies when they are underwater with their mortgage and need to sell their home quickly. These companies claim to give you a great deal on houses that could be considered ugly or undesirable, in a short period of time. However, you should think to yourself, are these companies legit and are they actually acting in the best interest of the seller?
Are Maine “We Buy Houses for Cash” Companies Legit?
The way cash buying companies work is fairly simple. Their target demographic is homeowners that have homes in bad shape or are looking to sell their home quickly. Other common situations causing people to want to sell quickly are divorce, death, or being behind on mortgage payments.
The selling process for cash buying companies is also very straightforward to the untrained eye. Once you reach out to them, they will give you an estimate on how much your home is worth. Often, this estimate is completed without even seeing your home and the number is usually based on how much you owe on your mortgage.
What most sellers don’t realize is once they know how much you owe on your home, they usually never give you more than your loan amount. This might sound like a great “break-even” kind of deal, but these kinds of transactions come with fees and commission rates as high as 10%, thus leaving you with owing money.
From there, they will provide cash for the home, typically in under 30 days, and often waive inspections. In short, these companies try to be a “lifeline” for homeowners looking to get out of their loans as soon as possible.
How Much Will a Cash Buyer Pay for Your Maine Home?
Paying off your home loan sounds like a decent enough benefit to sell to an iBuyer. However, once you see the actual amount of money you would be losing from this deal, it’ll probably change your mind. In Maine, the median home value is roughly $191,200. A cash buyer will offer you around $152,960 for a home at that value. This means you would be out $38,240.
All of this considered, it doesn’t take into the loss you would be facing if you aren’t offered enough to pay off your home loan. This means you would need to find the money to finish paying off your house, while also saving up if you decide to buy another house down the road. If you were to partner with a low commission real estate agent, you would most likely get more than the average market value and pay less in fees.
Maine iBuyer and Cash Buyer Reviews
Sell Now Maine
Sell Now Maine advertises being able to close on your home in 11 days or less. They claim to offer the best deals and never lowball their clients. Their mission is to “ to make Maine great again, one house at a time by buying and restoring homes back to their original glory…or better!”
Highest Cash Offer
Highest Cash Offer in Maine has been featured on various television channels such as Fox, CBS, NBC, and ABC. They offer free and no obligation home offers and say you will never have to pay fees or commission. They also have many locations all across the United States.
Fast Home Offer
Fast Home Offer in Maine prides themselves in having an experienced team of Real Estate Investors. They ensure you will never have to deal with title issues, foreclosure, liens, judgments, trashy homes, run-down houses, and foundation problems.
We Buy Houses
We Buy Houses in Maine has a very simple approach to their method. Once you contact them, they will actually send someone out to evaluate your home. They say you can expect to have your home closed in days, hassle-free of course.
“Sell Your House for Cash” vs. a Full-Service, Local Real Estate Agent
Your best bet in any situation where you want to sell your home is to work with a full service, local real estate agent. This ensures paperwork is done properly and you get a fair amount of money for your home. Real estate agents are trained to negotiate and want you to walk away with money in your pocket after a sale.
There are also many ways to ensure your home will sell as fast as you need it to. Real estate agents will be able to assess your situation in aid you in this process. A cash buying service will only give you just enough to pay off your mortgage, leaving you with nothing to show for owning a home.
Work With a Clever Partner Agent
If you have never heard of a full-service real estate agent offering low commission rates, you’re in luck. When you work with a Clever Partner Agent to sell your home, you can save thousands of dollars in commission fees. You’ll still get the full services of a traditional real estate agent for a listing fee of just $3,000 or 1% of the home price over $350,000. A partner agent can also help you sell your home for more than what a cash buyer could offer you.
If you are working on a tight deadline, you can make your agent aware of this and work with them remotely to finish the sale. Considering today’s digital age, agents are used to working with clients who can’t be there physically. There’s no reason to settle with We Buy Ugly Houses when you can still sell quickly and for top dollar with a Clever Partner Agent.