‘We Buy Houses’ Review: Getting Cash for Your Home
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- 12 min read
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Lindsey Bergeron, Contributing AuthorClose
Lindsey Bergeron Contributing AuthorLindsey Bergeron is a Hartford-based freelance writer and editor who writes about small business, lifestyle and real estate.
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Richard Haddad, Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
House flipping is big business. There’s a good chance that you’ve seen ads from local investors plastered to telephone poles or in your mailbox. The phone numbers may be different, but the offers are essentially the same: “We’ll buy your house for cash.”
If you’re looking for a quick, convenient sale, the offers may seem appealing. But with so many homebuying companies to choose from, how can you tell which option might be best for your situation?
Here is a review of one well-known house-flipping brand to help you better understand what you can expect from their service.
Need to Sell Your House Fast?
Similar to We Buy Houses for Cash companies, HomeLight’s Simple Sale platform provides all-cash offers for homes in almost any condition nationwide. Skip repairs, staging, and open houses, and get started today.
Disclaimer: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of “we buy houses” companies should not be considered endorsements.
What is ‘We Buy Houses?’
We Buy Houses is a nationwide network of real estate investors who purchase properties for cash — typically regardless of their condition. The company was founded by entrepreneur Jeremy Brandt, who is also the name behind two other home-selling companies: Fast Home Offer and 1-800-CashOffer. Since its founding in 1997, We Buy Houses has worked with over one million homeowners across the United States.
Unlike its competitor, “We Buy Ugly Houses,” We Buy Houses is not a franchise. Rather, each location is independently owned and operated by vetted real estate investors who purchase a license to use the company’s brand and marketing materials. As we’ll discuss more below, this means that the level of service could vary widely depending on where you’re located and the investor you’re working with.
How does ‘We Buy Houses’ work?
Sellers interested in getting a quote from a We Buy Houses investor can fill out the form on the company’s website. The form asks for basic information about the property, including:
- Property type
- Number of bathrooms
- Number of bedrooms
- Your approximate asking price
- The reason you’re selling
- Whether the property is currently occupied
Once submitted, sellers can expect a call from the real estate investor who manages their area to get more information on your property and to schedule time for an inspection. This appointment gives the We Buy Houses investor an opportunity to view the property and evaluate its condition. This information is used to provide the seller with a no-obligation offer within 24 to 48 hours on average.
If the homeowner agrees to the offer, the sales process can proceed. Depending on the seller’s timeline, it could be completed in seven to 14 days.
Does ‘We Buy Houses’ serve your area?
We Buy Houses serves homeowners in all 50 states and the District of Columbia. Sellers can connect with an investor in their area by filling out the form on the company website.
What is the cost?
When a We Buy Houses investor makes an offer on a property, it is inclusive of any repair costs they intend to make before they either resell your home or list it as a rental unit. There are no fees or closing costs associated with the process.
It’s important to keep in mind, however, that this is a business transaction, and the investor buyer will need to make a profit on the property for the transaction to be successful. This means that you can expect a lower offer than what you’d typically get if you listed the house on the open market.
How does ‘We Buy Houses’ make money?
The We Buy Houses brand makes money exclusively from the licensing fees it charges to investors who operate a business using the company’s brand and marketing materials. To protect the integrity of the brand, investors must undergo a thorough vetting process prior to being issued a license to do business under the We Buy Houses name. This includes an investigation into the investor’s record and reputation, as well as their years of professional experience.
Investors make money off the buying, selling, and management of the real estate properties they purchase. Properties are often “flipped” for a quick profit or rented out as part of a long-term investment strategy.
User reviews of ‘We Buy Houses’
One of the key things to keep in mind when evaluating reviews for We Buy Houses is that each location is independently owned and operated. This means that the reviews you see in one location could be very different from the reviews in another.
That being said, Google reviews were generally very positive for the locations where reviews were posted, with 5.0-star reviews for both We Buy Houses Spokane and We Buy Houses Tacoma.
Positive reviews mentioned the sellers’ overall satisfaction with the process, including the ease of working with the investor, the speed of the transaction, and how fair and honest they felt the investor was throughout the home sale.
Real We Buy Houses Reviews
One Google reviewer said they decided to sell their rental property after dealing with a tenant who wasn’t paying rent. They described the smooth, fast transaction they experienced, with the staff visiting their property and making an offer on the spot. The customer strongly recommends the team to anyone looking to sell their property, sharing that they finalized their sale in just a week with a hassle-free process.
Another Google reviewer shared a similar sentiment about We Buy Houses Tacoma. She explained that she needed to sell her rental house and accepted the company’s cash offer. She said it was better than going the traditional route, which can take months and involve Realtor® fees and commissions. “This was easy, and I got my money quick,” she wrote.
The company maintains an A+ rating with the Better Business Bureau (BBB) and has been accredited since 2020. They have been in business since 1997 and are headquartered in Grapevine, Texas, between Dallas and Fort Worth. Because We Buy Houses is simply a licensing service, there are no customer reviews on their BBB page. However, you can use the BBB website to search for ratings of We Buy Houses franchise locations in your area.
The pros (and con) of using ‘We Buy Houses’
When deciding whether We Buy Houses is the right option for you, it’s important to weigh the pros and cons of this home-selling route.
- The entire process is fast and easy, with most home sales being finalized in seven to 10 days.
- Properties are sold in as-is condition without any updates needed. This can make We Buy Houses an appealing option for those with homes that are outdated or in disrepair.
- It’s a good option for homeowners facing difficult circumstances, such as foreclosure, a short sale, or bad tenants. The company helps homeowners in all these situations — even working with the bank to negotiate a short sale when necessary.
- Investors are carefully vetted before they are allowed to join the company to make sure they have a solid reputation and track record.
In terms of cons, the primary drawback to call out (which is generally true regardless of the house-flipping company you work with) is that there is a cost to the convenience, and you likely won’t get as high of an offer for your property as you would on the open market.
Perhaps a lower sale price is less of an issue if you inherited a home that you want to unload quickly — or have a fixer-upper that needs a lot of TLC before it hits the market. As part of this process, however, you’ll want to carefully consider your motivations for selling and what you’re looking to achieve before accepting an offer.
Vet cash buyers and know your home’s worth
For many home sellers, We Buy Houses for Cash companies can be a solid solution to selling a property quickly or accessing cash for an expected life challenge. On the other hand, the “cash for your home” rehabbing business model has also led to what some housing advocates call predatory tactics.
The level of integrity and customer service you experience can vary, even within an established house-buying company that strives to maintain consistent business standards. This is because many We Buy Houses for Cash companies are franchises and often use independent investors or local wholesaling outfits. Your experience greatly depends on the character of the person or group making the offer.
If you are considering a cash offer, vet the company thoroughly. Check reviews, read testimonials, and research its presence and performance in the market. And, of course, read the buying agreement carefully before signing.
Before committing to a We Buy Houses for Cash company, HomeLight suggests you consult with a top agent to get a better idea of what your home might be worth if sold on the open market. Then, compare cash offers to what a top agent might be able to get for your home. HomeLight can connect you with a top-performing agent in your market.
You can also use HomeLight’s free Home Value Estimator right now to get an initial ballpark estimate in less than two minutes.
Alternatives to ‘We Buy Houses’
When it comes to companies that promise a “quick, cash offer” for your house, We Buy Houses is just one option to choose from. Here are just a few examples that include proven cash offer platforms, house flippers, and iBuyers:
Does ‘We Buy Houses’ provide additional services?
Although We Buy Houses primarily buys properties from motivated sellers, it also works with other investors and wholesalers who are looking for properties to purchase. The company purchases such a high volume of homes that they end up selling many of them off immediately.
How does HomeLight’s Simple Sale platform work?
While We Buy Houses is primarily an offline homebuying process, HomeLight takes the home-selling process online with its easy-to-use Simple Sale platform.
Homeowners interested in securing a quick, cash offer can use the online platform to answer a few basic questions about their property. Within 24 hours, HomeLight will provide you with a no-obligation cash offer from the nation’s largest network of pre-approved buyers. If you accept the offer, the sale can close in as little as 10 days. You can even choose a move-out date that fits your schedule, up to 30 days post-closing.
Below, you can hear about how Baohan Wu, a seller who used Simple Sale to sell his high-rise apartment, closed within three and a half weeks and what he thought of the process overall.
Other tools offered by HomeLight
Know your options: Weigh the pros and cons of ‘We Buy Houses’
Working with a cash-offer company such as We Buy Houses or using HomeLight’s Simple Sale platform may be an attractive option for sellers who are looking for a fast, easy, and convenient transaction. Both companies provide a timely, cash sale that will put money in your pocket quickly — typically regardless of the property’s condition.
Get a Quick Cash Offer For Your Home Today
It’s difficult to sell a house, especially under the pressure of a deadline. Use HomeLight’s Simple Sale platform to sell when you’re ready without the hassle of paying for repairs, prepping for listing, or dealing with showings.
That being said, when it comes to maximizing value, there’s no substitute for working with a top-performing real estate agent in your area and listing your property on the open market. Especially in today’s competitive market, where cash offers are becoming increasingly common, this process can net you a higher offer than a quick cash sale.
Even if you’re leaning toward a house flipping company or iBuyer for your home sale, consider speaking with an experienced real estate agent first to ensure you understand your home’s value and what it could be worth on the open market.
HomeLight’s free tool will help connect you with a top real estate agent in your area who can provide expert guidance to help you make the best decision for you and your future goals.
Header Image Source: (Trinity Nguyen / Unsplash)
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