Selling your home can be a stressful process, but it can be even more overwhelming for New York homeowners who need to sell their home fast. Whether it’s because of financial issues or relationship changes, selling a home quickly sometimes takes priority over how much money a home sells for.
When these situations arise, cash buyers seem to come out of nowhere, offering to purchase New York homes for cash, quickly. But sometimes their services seem too good to be true.
If you’re in a hurry to sell your New York home and are contemplating selling to a cash buyer, use this guide to help you make the best financial decision for your situation.
Are New York “We Buy Houses for Cash” Companies Legit?
We Buy Houses companies can sometimes be scams, but most of the time they are real investors looking to purchase real estate. However, it’s rarely recommended that a homeowner partner with a We Buy Houses company, for several reasons.
They Prey on Vulnerable Homeowners
From a moral standpoint, the way these companies operate is simply wrong. They prey on homeowners in desperate financial need to sell their home and often take advantage of homeowners’ fragile emotional states.
We Buy Houses companies often target:
- Sellers whose homes have been on the market for months
- People going through bankruptcy
- Homeowners going through divorce
- Sellers who are evicting tenants and selling their investment property
- Homeowners whose property/ies are in foreclosure
- Owners of vacant homes
Often times sellers in these situations are desperate to move their house to a sale, and We Buy Houses for Cash companies can seem like their best option. They swoop in just in time, claiming to save homeowners from financial ruin when really, they often can make matters worse or harder for homeowners to improve.
They Don’t Have Sellers’ Interests at Heart
When you partner with a real estate agent who is dedicated to representing your needs, you can rest assured knowing that they’ll fight for your best interests during negotiations and inspection results discussions.
We Buy Houses companies will seem even more legitimate to homeowners because they do work with real estate agents in some cases. Most of the time these agents won’t even charge you commission, which seems to save homeowners thousands of dollars.
The problem here is that these real estate agents will represent both the seller and buyer, often cutting corners to get the home sold, without worrying about how much money you receive from your home sale. And often, these companies will turn around and flip your home, maximizing their profit while leaving you with little reward.
You’ll Lose Money
As a result of no-commission real estate agents and companies purchasing your homes in a hurry, you’ll often make much less off of your home sale than you would if you were partnering with a trustworthy real estate agent.
In fact, many homeowners will only receive 50-80% of their home’s actual value in cash, leaving them with 20-50% of missed profit margin.
How Much Will a Cash Buyer Pay for Your New York Home?
Making less money on your home might be agreeable if you can still sell it fast. But in New York, homeowners can lose a significant amount of profit by partnering with We Buy Houses cash buyers instead of working with a qualified agent.
New York homeowners can expect to receive roughly 80% of their home’s value when working with a cash buyer. This may seem like a large percentage, but in the current seller’s market in New York, this is actually a huge loss.
If you own a home worth $314,500, a traditional real estate agent might suggest you list it at $310,000. In a buyer’s market, you’ll typically receive a few different offers, which can drive up the price and might even help you sell your home for over market value.
With cash buyers, you’d receive a cash offer for 80% of your homes value, which in this case is $251,600 for a $314,500 valued home. This is a loss of over $62,900, which is a significant amount of money. Cash buyers will then pocket this profit (and potentially more) when making small, cosmetic enhancements to your home and selling it.
New York iBuyer and Cash Buyer Reviews
We’ve rounded up a quick list of the top cash buyers in New York, to help you make a more qualified decision about selling your home.
This company buys homes throughout the state of New York quickly, for cash offers. They’ll provide you with a quote in less than seven minutes, and while they have a good rating on the Better Business Bureau, their Yelp Reviews are a mixed bag. Customers complain about non-stop phone calls and texts, with one homeowner claiming they were offered as little as $250k for a $400k-valued home.
This company advertises that they’ll buy your New York home as-is and sell it your home within as little as three days. There’s no data available as far as the percentage they’ll sell your home for and no reviews exist on Yelp. Their Google rating is 3/5 stars.
We Buy Ugly Houses
This national cash buyer chain also buys and sells New York homes. While there’s no specific data on how much they offer homeowners, City Data users claim they offer 70-75% of the home value for houses in good condition and as little as 50% for homes that require work.
“Sell Your House for Cash” vs. a Full-Service, Local Real Estate Agent
If you need to sell your home quickly in New York, you can partner with a full-service local real estate agent who can move your property fast, without taking away 20-50% of your home’s value. Local real estate agents understand your area’s market well and can help you target the right buyers who will pay top dollar for your home.
While you’ll need to pay realtor fees and commission, you’ll still come out on top. Even if you pay a 6% fee (for listing and buyer fees) on your $314,500 home that sells for the correct value, your expense will be $18,870. However, with a We Buy Houses company in New York, you won’t pay fees, but your total loss will be $62,900.
Better yet, if you team up with a local Clever Partner Agent, you’ll receive a full-service agent who can sell your home quickly, for even less money than traditional agents. That’s because Clever Partner Agents will only charge you $3,000 for the listing fee (and 1% if your home is worth more than $350k). That’s a $6,435 savings on just listing, alone!
To learn more about how to sell your home quickly without losing 20-50% of your home’s profit, get connected with a Clever Partner Agent near you.