Do you need to sell your house in Dallas quickly? Do you want to sell it in its current condition without having to do any repairs? Selling a house can be a complicated and lengthy process that involves the hassle of preparing your home or public showings over and over again. Even once a potential buyer shows an interest in your house, there are still the hurdles of the buyers getting approved for a mortgage and negotiating any repairs they may want you to make to the house.
If you don’t have the time and effort to invest in showing and selling your home, you might want to sell it to a home buying company that buys homes for cash. Learn the types of companies that are best for cash home buyers in Dallas Texas and learn all the things that you need to know before selling your house.
Why It’s a Good Idea to Sell a House for Cash
Interestingly, although we use the term cash, no one is coming to the closing with a suitcase of paper bills. The word cash is actually a misnomer as there isn’t an exchange of physical cash for your house. Instead, it refers to the scenario where the buyer does not need to take out a loan, mortgage, or finance the house. The buyer will most likely give a check or transfer the money to the bank electronically. You also must have idea about the best time to sell a house for cash to get maximum profit.
There are a few reasons why you should consider selling your house for cash (or rather check or wire transfer).
- Fast Closing – Companies that buy houses for cash typically close within one to two weeks. If you sell the traditional route to a homebuyer, the closing date could be months away until they get approved for a mortgage and work out their arrangements.
- No Home Repairs – While a home buyer may request you do repairs or modifications to your house, home buying companies will take it as is. Many companies claim, “We buy ugly houses!” You won’t have to spend time and money on fixing up a house that you won’t be living in.
- Reliable Sale – When reputable home buying companies that buy homes for cash make you an offer, they are more likely to close the deal than a homebuyer waiting for a mortgage. A private home buyer may not get approved for a mortgage or determine the house needs too many repairs and back out of the deal.
- Less Fees – There are less fees involved in the house sale when you go with a company that buys houses for cash. You don’t have to pay a real estate agent’s commission or closing costs that would usually apply if you would sell it to a private buyer. Although the sale price will probably be less than the fair market value, you will be saving a bit on lower fees.
- No Obstructions – You can sell your property to a company for cash despite obstacles that would be an issue when dealing with a buyer who needs a bank or loan approval. For example, you can sell homes that have problems with their titles, overdue taxes or fees, building code violations, and homes that are in disrepair to cash-buyers.
Types of Companies that Buy Homes for Cash in Dallas
There are a few categories of companies that are cash home buyers in Texas.
House flippers buy a house to resell it at a profit. They usually look for a property that needs some work, buy it from the homeowner at a bargain price, renovate it to increase its value, and then resell it for more than the purchase price and renovation costs. Most big cities, such as Dallas, have multiple businesses that flip houses.
Buy-and-Hold companies buy properties and then rent them out with the aim to collect enough rent to turn a profit. These companies usually buy multi-unit properties, either buildings or a house with multiple apartments, which they can rent out to several tenants.
Most Buy-and-Hold companies in Dallas follow the Buy, Renovate, Rent, Refinance, Repeat (BRRRR) method to make home sales and keep the business profitable.
Home Trade-In Companies
A home trade-in is similar to trading in your car. The trade-in company will sell your old house and buy your new one. If your old home is not yet sold, some companies will allow you to rent the new house in the interim.
The trade-in companies will work with you on any renovations or upgrades and can also help you with financing your new home. There’s growing interest in home trade-ins in the Dallas housing market due to the ease and simplicity of the process.
iBuyers are companies or real estate investors who buy properties online, often sight-unseen. They use technology as their business model and can buy houses fast. They can be based anywhere in the world and buy properties in Dallas.
Four 19 Properties
Four 19 Properties has purchased hundreds of houses for cash for more than a decade. They will give you a competitive cash offer on your house in Dallas, Texas with no fees and no commission.
The Cash Home Buying Process
What is involved in selling your house to a company for cash?
- The company obtains information about the house from the homeowner including the property’s location, size, condition, and how much you still owe the bank or lender for your mortgage.
- The home-for-cash company will review the information and determine if they are interested in the property. If they are, they will give a general estimate of how much cash they are offering for the house.
- If the buyer accepts the rough estimate, the company will send down an inspector to the property to evaluate it. This is not a full home inspection that is done when a bank or lender is involved but is done by a representative of the home buying company.
- The inspector will examine the property and determine the resale value, plus any repair costs the company will need to make.
- The company will give a cash offer to buy the house.
- If the seller accepts the offer, the company will close quickly, usually within one to two weeks.
- The company will fix up the property and sell or rent it out for a profit.
What You Need to Know before Selling to a Cash Home Buyer
Selling your property can be a long, complicated process fraught with emotional tensions and financial decisions. Some homeowners resent having to host open houses and the invasion of their privacy of having real estate agents and potential buyers scrutinize their homes.
Selling your house as-is fast for cash and avoiding the whole open-house process may sound like the perfect solution, but there are some precautions you should keep in mind.
- Reputable Company – Make sure the company is honest and has a good reputation for home buying. Ask for references, research their website, reviews, and the Better Business Bureau. You can look into a few different companies and compare their rates. You do not want to fall for a scam. Also, never pay a cash-for-homes company money upfront. They make their money when the house is sold.
- Lower Price – Cash Home Buyers will usually offer you a lower price than what you could get on the real estate market, often only 50%-70% of your home’s value. If you’re not in a rush to sell and don’t have any issues with the property that can prevent a potential home buyer from offering for it, you may want to first see what you can get before selling it for a lower cash offer. Know your house’s market value and worth.
- Repair Costs – While selling your home to a company for cash means you don’t have to worry about making repairs, you’re still not off the hook. The company will charge you for the home renovations they will make to sell the house, by deducting it from your cash offer.
- No Negotiations – The companies typically won’t negotiate with you on their offer. If the offer is too low, you can take it or leave it, but they won’t raise their offer.
Should You Sell Your House for Cash?
If you’re looking for a quick and easy sale with minimal hassle, and don’t have the time or inclination for multiple house staging and open house events, selling your home for cash might be a good option for you. Four 19 Properties can buy it from you.
Homes in the following circumstances are often sold to cash-for-home companies:
- Properties that were inherited and the owner doesn’t have the time or resources to maintain them.
- Houses that were on the market with realtors for a while and haven’t sold or hasn’t received home offers.
- Homes that are in probate or foreclosure.
- The home sellers are divorcing and want to sell quickly to divide the assets.
- The sellers are filing bankruptcy.
- Homes that are vacant or multi-unit buildings where there are many empty apartments.
- Homes that are in disrepair and will have a difficult time being sold.
- Properties with issues that would not be approved by a bank for a mortgage, such as title problems or work that was done without the proper permits.
Selling your home is a big financial decision and one that should not be made lightly. Weigh the pros and cons of selling your house traditionally versus selling it for cash to an investor or company.
While you might make less money from selling it for cash, if you’re short on time or need to sell the house fast and as-is without making any renovations, selling it for cash can be the choice for you.