Most of us have been there, facing a stressful financial or other hardship. And the constant barrage of creditor calls, medical bills, and increasing gas prices put a strain on the paycheck and our sanity. People in desperate situations sometimes decide to sell their home as an easy way out. They think, “the faster the better” to restore some type of peace to their life. So local residents decide to check into to a we buy houses for cash company in San Diego.
Cash for home companies target distressed homeowners, offer them an average of 65% of the fair market value of the home, and pay closing costs. All while saving you the time and expense of any needed repairs, and the 6% typical commission charged by real estate agents. They also promise to close within 7 to 10 business days.
The hassle-free process starts by you contacting the company and explaining your situation. It’s a simple business model, however, there are huge drawbacks to using these types of companies because they prey on vulnerable homeowners dealing with stressful circumstances. These opportunity investors have one goal: buy low and sell high.
Therefore, you have to keep in mind some of the risks involved because this sector of the housing market is a hotbed for scammers.
Are San Diego “We Buy Houses for Cash” Companies legit?
It’s not always easy to tell the difference. A legitimate company may reveal truthful information, however, it’s not always in the proper context. Be aware of any buyer who says they’ll take your title “subject to” your existing loan because they are generally against the law. It simply means that if you don’t use the cash to pay off the mortgage, you are still liable for the loan and have to continue making the payments.
Like with anything, there are pros and cons to using a we buy houses for cash company:
- It’s easy. Selling a home in need of repair is challenging when you’re trying to get a good price. Instead of making the repairs yourself, a cash for home company will do them, however, you end up with a much lower price.
- The decision to sell is made once. So there is no need to haggle over what repairs to make or who to sell to. You’ll receive an offer and can make a single decision.
- You don’t have to waste time selling the house yourself. The challenges of For Sale By Owner (FSBO) are enormous. Though you’ll save on paying realtor fees, it’s like having another full-time job, and to be effective requires skills you may not have.
- You’ll probably make less sale than by partnering with a real estate agent. Realtors work hard for the seller because they’ll get a percentage of the sale price, a good agent will be responsive and aggressive to get your home sold fast and for the highest price.
- Improving the home to get a better price is not an option. Regardless of how dilapidated a home is, it can be improved to attract the right buyer. A good agent will use their expertise to advise you on the best improvements for increasing your home’s value.
- You give up control. A we buy houses for cash company is only focused on locating desperate sellers or those that no longer care. If you do care and are not in a dire situation, there is no reason to work with a company that will rob you of all the opportunities to get the most from your sale.
How Much Will a Cash Buyer Pay for Your San Diego Home?
The current median value of homes in San Diego is $632,000.00. The average cash for home company will offer about $410,800.00, or a difference of $221,000.00. Although we buy houses for cash companies don’t charge commission fees, you should consider the potential fees for covering the repairs and removing any of your unwanted items. These and other hidden fees may lower the offer.
If your goal is to minimize losses, this is clearly not the right option.
San Diego iBuyer and Cash Buyer Reviews
We buy homes for cash companies routinely purchase single-family homes, duplexes, condos, multi-tenant, and a few commercial properties. All these companies offer a ‘fair’ cash offer, however, none of them will openly share what your home is actually worth.
Although there are plenty of other viable options, if you feel you must use a we buy houses for cash company, here is a quick review of some companies serving the local area.
- House Vault promises you a cash offer today. Their homepage offers insight on the differences between selling to them vs. listing. You can also read a testimonial featured in Forbes. Since they don’t rely on bank financing they can close within 7 days.
- Want to Sell Now will work closely with you to provide fast cash buyouts. Their promise to buy “as-is” means you don’t need to make any repairs. They have a three-step-process and allows the homeowner to choose the closing date.
- Gordon Buys Homes is owned by Tim Gordon and is based in Oceanside, CA and they have a five-star rating. On the About Us page of their website, Tim tells a little about himself hoping to earn trust. Time is described as patient, compassionate, and professional by former clients.
“Sell Your House for Cash” vs. a Full-Service, Local Real Estate Agent
If it was as simple as comparing apples to apples, taking advantage of a cash for home offer to sell your house fast would be a no brainer. However, it goes at least two layers deeper than that.
For instance, did you know that you could get up to 125% more than the appraised value of your home?
Of course, we can’t argue the fact the typical agent gets about 6% commission and closing costs are generally 2%, both are based on sale price. But you’d still have a bigger profit with the help of a good agent even after paying the above-mentioned expenses.
Let’s say based on the current median home value in San Diego plus 125%, a listing agent helps to sell that home for $790,000.00. After closing costs and their commission you’d net $726,800.00, which is a profit of $94,800.00.
There is no reason to walk away from that kind of profit, especially when we can connect you with a local real estate agent that has your best interest at heart.
Clever partners with empathetic and local real estate agents who can get top dollar for your home. Agents from national brands and regional brokerages like Century 21 and REMAX have agreed to represent you for a flat fee of $3000 or just 1% if your home sells for more than $350,000. Clever Real Estate and our Partner Agents have nearly 100 reviews on Trustpilot, and a 9.4 rating.
Clever agents provide a full service for a flat fee, so contact us today and we’ll help expedite the sale of your home.