Do you need to sell your home quickly or don’t have the money to prepare your house for showings? Homeowners who need to relocate for a new job offer or those who want to move to a different property in a tight market might find a traditional sale impossible. Owners who don’t have or want to invest money in necessary repairs or go through weeks of showings might also find selling to house buying companies attractive.
Selling your house for cash in a challenging real estate market or circumstances can alleviate many of the burdens associated with traditional sales. Selling a house in New York the traditional way means you’ll need to hire a real estate agent and prepare your home for potential buyers. You’ll have to leave your home for showings and hope a buyer makes an acceptable offer and secures financing.
Your home will also have to pass an inspection, go through an appraisal, and a potential buyer may make additional demands. Your buyer may also need to sell an existing home. All of these contingencies can push out a closing date or cause a deal to fall through. Let’s look at how a fair cash offer can help, and some tips for new home sellers.
Types of Companies that Buy Houses for Cash
You can usually find cash home buyers in New York and house buying companies by Googling “we buy houses for cash.” You may notice signs with similar verbiage posted in high-traffic areas. While these are not the only places you can get a cash offer for your home, these companies are a good starting point.
Here’s a breakdown of the different types of companies that buy houses for cash in New York.
- Home flippers
- Buy-and-hold companies
- Trade-in companies
- Individual investors
Home flippers are looking to buy distressed properties or homes that need a little work. Flippers usually make a fair cash deal with the intent of renovating the home. They work to fix the home’s problems, remodel it, or correct any cosmetic deficiencies. Then they resell the home on the traditional market.
Flippers are looking to make a profit off the sale of the home. When presenting a cash offer, they figure in remodeling and repair costs and market values. Flippers consider what they can reasonably resell the home for once they fix it up. They’re looking to turn a profit, usually anywhere between 15% to 20%.
Buy-and-hold companies have similar goals to home flippers. But, instead of reselling the home to another buyer, these companies rent out the home for profit. Buy-and-hold companies will also figure in any costs associated with fixing up your home.
These companies need to make it ready for renters and ensure the property will be safe and appealing to live in. Buy-and-hold companies will want to gain enough equity or cash flow from rental income to make an acceptable ROI. If you need a fair cash deal on your house, buy-and-hold companies can be a viable option. They typically exist in cities like New York, where there are a lot of high-density and multi-family residential properties.
iBuyers are digital real estate companies that leverage AI and market data to make an instant cash offer on your home. Unlike flippers, iBuyers seek homes that are in good to excellent condition. Examples of iBuyers include Redfin and Zillow. You may have seen options for “instant offers” if you’ve been using these types of real estate apps.
Since iBuyers work on a fee basis, you’ll get an instant cash offer that’s near market value. However, the company will want to inspect your home and will ask for credits against the closing costs for any requested repairs. Once an iBuyer takes over your property, the fee they charge will go toward selling the home on the traditional market.
Trade-in companies are a relatively new addition to the realm of cash buyers. These companies are best for people who want to sell their existing homes and simultaneously buy a replacement home. Homeowners who are looking to upsize, downsize, or relocate are usually in this predicament.
It can be more challenging to sell an existing property and buy a new one on the traditional market. That’s because you’ll usually need to put contingencies into the contracts on your current property and any new home you want to move into. These contingencies say you can back out of either deal if your current home doesn’t sell or you’re not able to secure a replacement.
In highly competitive real estate markets, sellers may not want to accept offers with these types of contingencies. They can also scare off potential buyers of your existing home. Trade-in companies buy your new property and keep your current one as collateral. Your real estate agent lists your existing home on the traditional market and once it sells, the company removes the lien.
Individuals or mom-and-pop property management companies may pay cash for properties. They could be looking for second homes or properties they can rent out. Some investors decide to live in a second property part-time and rent it out when they’re at their primary residence.
Who Buys Houses for Cash?
Here is a list of who buys houses for cash in New York.
- Leave The Key Homebuyers: This family-owned and company wanted to offer New Yorkers a fast and easy method to sell their houses. They pride themselves on being trustworthy and genuine when providing home sellers with honest cash offers for their homes. You can do this in three simple steps: Call or contact them online with details about your home, meet them on-site or send in pictures to receive an upfront offer, and if accepted, choose your closing date.
- Sell Now Homebuyers: This is a company made up of New York property investors who focus on tri-state area homes. You’ll start the process by filling out an online form. The company will follow up with an offer, which you can accept or refuse. If you accept, expect to close within less than a month.
- Express Homebuyers: This company will make a cash offer on your home within seven minutes after you submit your information. The offer is “as is,” meaning you won’t have to make any repairs. After you receive an offer, a local investor will meet and discuss the terms with you. If you accept, you can choose your closing date within seven days.
- Fair Offer NY: This is a local investor who buys houses for cash. You can schedule an appointment online or via phone to discuss your home. You’ll get an offer within minutes and close in as little as seven days.
- We Buy Houses: Local investors operate as franchises of this company. The local investor will meet with you and present an offer within two days. You won’t have to pay any closing costs if you accept.
What to Look for in a Cash Buyer in NY
Selling a house for cash is a different process than going through the open market. You’ll want to follow a few tips to find the best cash home buyers such as checking the credentials and ratings of any company or investor you’re thinking of selling to and ask for references. Google the company and read through any reviews or testimonials.
If a company or individual investor pressures you to enter an agreement, it’s a red flag. You should receive a no-obligation offer and have space and time to make a decision. The last thing you want is to enter a cash deal that turns out to be a scam or a bait-and-switch situation.
The Process of Selling Your House for Cash
The process to sell your house fast in Buffalo or surrounding areas for cash starts when you contact the company or investor. You’ll usually exchange some basic information about your property, including the address. A representative will schedule a time to walk through your home to assess what condition it’s in and if any repairs need to be made.
As a house seller, you’ll then need to wait while the company puts together an offer. Some will use technology, but most will run a comparative market analysis. The offer you receive will take into account any expenses for repairs, real estate commissions, closing costs, and desired profit margins.
Your offer will also include terms of the home sale, such as the proposed closing date. You can still negotiate any terms of the offer. Once both parties accept, you’ll determine the closing date and receive cash on that day.
How to Get the Best Cash Offer on Your House
To get the best cash offer on your house, shop around. Call at least three to five companies and investors. Selling a house for cash in New York means getting it in the best condition you reasonably can. Also, check out comparable properties to see what they’re selling for. You can figure in reasonable deductions for repairs, remodeling, commissions, and closing costs.
There are several benefits of accepting a cash offer on your home. Selling a home for cash can be more efficient and involve less stress than a traditional home sale. Research companies that buy houses in Queens and the surrounding area willing to pay cash. Submit your property’s information to discuss cash offers and accept if the terms are acceptable. You’ll be free of your home in no time!