Just this past November, WPR Wisconsin Public Radio ran a segment on the state’s real estate market. Its headline read in part that “Inventory Remains Tight” in the state and the story went on to say, “it’s still a strong seller’s market in most regions of the state.”
That’s good news for sellers wanting to make a robust return on when selling their properties. A strong seller’s market also means that homes don’t stay on the market long, especially, as is the case with Wisconsin, there’s not enough inventory to keep up with demand.
Despite this, many homesellers may be tempted to sell their house or condo through what are known as “We Buy Houses for cash” companies.
The companies and people behind them are real estate investors hoping to cash in on buyers who need to sell their properties quickly, own homes that are dilapidated or are in need of significant repairs. The companies also look for homeowners who may be in financial trouble. The premise behind these companies is to make the sale as quickly as possible with the promise of a fast cash sale to entice the seller.
But Wisconsin homesellers should be aware that there is little chance (if any) that these companies will offer them anywhere near the actual value of their property. Here’s more on We Buy Houses companies in Wisconsin and some alarming numbers about the true cost in lost revenue for Wisconsin homesellers if they choose to sell through these businesses.
What Are We Buy Houses Companies?
We Buy Houses companies are house flipping companies owned by investors. Many of them are online services where real estate investors offer to buy your home for cash fast. They are looking for sellers who want to offload their properties as quickly as possible with the least hassle as possible.
The sellers are often in distressed situations and may not know that they would get a much higher price for their home (and likely sell quickly enough to satisfy the owner’s timeframe) if they worked with a professional real estate agent.
The companies target certain types of sellers. As noted above, speed of sale is often the biggest concern for homesellers who are targeted by these companies. They also target sellers who can’t sell their home because of its condition or are having difficulty selling their home due to circumstances beyond their control.
Again, people going through difficult times are often in the sights of We Buy For Cash companies. They look for people going through a divorce, deaths in families, sellers who are facing bankruptcy, and homes in need of major repairs.
In many cases, the Clever Partner Agent Network can get your home as much as 125% of a home’s market value, if not more. A professional real estate agent who is working for you will also be able to get you more for your home no matter what shape it’s in than if you sell to one of the We Buy Houses for Cash companies.
As a homeseller, you must remember that the agent representing the We Buy Houses for Cash companies is not negotiating the best price for your home on your behalf. In fact, they are doing the exact opposite. They would like to buy the property from you for as little as possible.
Are Wisconsin We Buy Houses for Cash Companies Legit?
The simple answer is many of these companies are legitimate. Most will pay cash for your house, but you may not end up getting the no hassles easy sale you’re looking for.
But even with legitimate We Buy Houses companies, the odds of you getting market value of your home are not good. Remember, the point of these companies is not to help the seller.
They want to purchase properties for the least amount possible. And be careful. Scams do exist. You’ll recall that these companies are looking for people going through difficult life issues. So, it’s no wonder that there would be dishonest predators lurking.
It’s always best to speak to a Clever Partner Agent about your specific selling needs and they will work with you to meet your requirements while getting you the highest possible return on your hard-earned investment.
How Much Will a Cash Buyer Pay for Your Wisconsin Home?
We Buy Houses companies or iBuyers (online companies that will offer to buy your home sight unseen based on their own valuation model) focus on getting the best deal for the investors. They will offer cash for a buyer’s home, but there is a big cost to homebuyers. They will make a lot less for their property. Typically, these companies will offer only 80% of a home’s actual value. It can even be as low as 50%.
In Wisconsin, the median home value is $178,900. That means a typical offer from a cash buyer for a property at the median home value would be $143,120. The difference is the money you would leave behind if you sold a median-valued home through one of these companies.
It’s clear that working with a trusted real estate agent is in your best interest. Even if you have to sell quickly or if you think there are just too many repairs to make to bring the property up to snuff for sale, it is almost always best to work with a professional real estate agent.
Wisconsin iBuyer and Cash Buyer Reviews
Here are just a few of the iBuyers and We Buy Houses for Cash companies operating in Wisconsin that homesellers need to inform themselves about.
Metro Milwaukee Home Buyer
This company is just for the greater Milwaukee area, but it promises to buy your house and pay cash, “regardless of the location or condition. Seriously.” What homesellers should seriously consider is that there are local real estate agents that they can reach out to that can help sell their homes just as quickly and for much more.
iBuyHomes targets primarily homesellers who are having financial problems. Like most cash for house companies, they offer a fast sale. You can typically expect an offer from them in 36 hours, though it will likely be much less than you’re expecting.
Need to Sell My House
This is an online company that gives online offers. A potential buyer is contacted within 24 hours and then a representative of the company will assess your home. The offer will follow the assessment.
Sell Your House for Cash vs. Local Real Estate Agents
It should be obvious that Sell Your House for Cash companies are not the best way to go, even if you’re in dire financial straits or need to sell your property fast. The best way to sell your house fast and get an optimum price for it is to work with a professional Clever Partner Agent. They are experts in marketing a home so that it sells quickly.
They will be able to assess the value of your home so that you can get the highest return no matter when you sell, and they will make the entire home selling process easier. Clever Partner Agents are all top-rated in their local markets, they’re full-service, and they come from major brands and brokerages such as Keller Williams, Century 21, and RE/MAX.