6 Top We Buy Houses for Cash Companies in Minneapolis

Disclaimer: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of Minneapolis “We Buy Houses” companies should not be considered endorsements. 

Working with house-buying companies in Minneapolis

We Buy Houses companies in Minneapolis typically promise quick, all-cash offers and ultra-fast closings, often in as few as seven days. They tend to target distressed properties in need of repairs, and work with sellers who need to move ASAP.

Here’s how the process generally works:

1. You request an offer and provide the company with some information about your home. Some companies may make a preliminary offer at this stage, but it’s usually subject to change once they’ve inspected your property.
2. The company completes a walk-through of your property, usually within 24 to 48 hours.
3. The company makes a firm offer, usually within 24 hours, sometimes on-site after the walk-through, which you can accept or decline. Most of these companies will not negotiate on price, so the offer is a take-it-or-leave-it scenario.
4. If you accept the offer, you’ll both sign a contract and the closing process will begin. Some companies offer a large deposit or moving cost assistance, and a few may even pay for the home upfront.
5. Closing and getting paid is quick, typically within seven days to a few weeks. This can vary by company, and sellers who work with a house-buying company often enjoy flexibility in selecting a move-out date that works for them.

Popular We Buy Houses for Cash companies in Minneapolis

If these benefits of selling to a house-buying company in Minneapolis sound good to you, it’s time to find a legitimate operation you can trust.

We’ve compiled some of the top companies that will pay cash for your parent’s bungalow or your Craftsman-style house. By selling to one of these companies, you should be able to sell your Minneapolis home in as little as a week or two.

Note: Individual program details frequently change. Please visit a company’s website for the most up-to-date information on each program’s fees, market coverage, business model, and more. HomeLight always recommends doing your own research to determine which selling option is best for your situation.

Why sell for cash in Minneapolis?

There are plenty of reasons a Minneapolis seller may choose to go the cash-for-homes route, speed and certainty being chief among them.

In Minneapolis, it typically takes about 79 days to sell a home on the market using an agent. That includes an average of 36 days on market, plus the typical 43 days a buyer needs to close on a purchase loan.

Compare that to the typical seven days promised by many top We Buy Houses for Cash companies in Minneapolis, and you can see why these companies remain popular, even though they don’t always offer top dollar.

Not every seller has months to prep, market, show, and close. Let’s look at some common reasons Minneapolis sellers choose cash-for-homes companies over listing the traditional way.

• Job relocation: You need to move quickly for a new job and can’t wait for a traditional home sale.
• Divorce: You want to quickly divide assets and move on with your life.
• Inherited property: You’ve inherited a house and prefer a quick sale to dealing with maintenance or renting.
• Downsizing: You’re looking to move into a smaller home or retirement community without the hassle of prepping and showing your current home.
• Repairs needed: Your home requires significant repairs that you can’t afford or don’t want to manage.
• Avoiding open houses: You prefer to avoid the stress and inconvenience of multiple showings and open houses.
• Foundation issues: Your home has structural problems, making it less attractive to traditional buyers.
• Foreclosure: You’re facing foreclosure and need to sell quickly to settle your debts.
• Problem tenants: You’re a landlord tired of managing tenants and want a quick sale of your rental property.
• Selling from out of state: You own a property in Minneapolis but live elsewhere and want the ease of a fast, remote sale.

If any of these situations resonate with you, requesting a cash offer from a top We Buy Houses for Cash company might be a good starting point. However, it’s important to remember that it’s not your only option, and it may not be the best choice for your circumstances. We’ll explore other possibilities shortly!

Pros and cons of house-buying companies in Minneapolis

By now, you’ve probably figured out that We Buy Houses for Cash companies in Minneapolis are a bit of a mixed bag. You get speed and service, but you might pay a sizable premium for that service. Let’s walk through a few pros and cons to consider your options.

That all may sound pretty great to you as a seller if you’re looking to move within weeks rather than the months it might take you to list and sell your home on the market with an agent. However, there are downsides to working with cash-for-homes companies. Namely, they typically offer substantially below market value for your home.

Your home is more than a place where you make memories with family; it’s also likely your biggest asset. Sure, you want to sell quickly, but you could be leaving major money on the table if you choose to work with one of these We Buy Houses for Cash companies.

Always do your research, compare your options, and consult with a trusted advisor before accepting any 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 get a property sold quickly or to access 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 say are 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.

Get a home value estimate

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.

Curious What Your Home Is Worth?

Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.

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You can also use HomeLight’s free Home Value Estimator right now to get an initial estimate in less than two minutes.

Other options to sell your home quickly

iBuyers

Within the cash-for-homes business you’ll also encounter a particular group of companies known as iBuyers, or instant buyers.

iBuyer companies offer sellers many of the same conveniences of other house-buying operations, but they also leverage algorithmic technology, otherwise known as automated valuation models (AVMs), to make you a near-instant offer on your home and provide a user-friendly, mostly online home sale experience.

iBuyers offer all-cash and can close in a matter of days to a few weeks. But unlike more traditional We Buy Houses for Cash companies, iBuyers tend to look for homes in better condition and offer much closer to market value, typically in the 90% range.

Though one thing to note is that major iBuyers like Opendoor and Offerpad usually charge sizable fees for their services, between 5% and 6%.

Sellers who may be a good fit to work with an iBuyer in Minneapolis include those who prefer to skip staging and showing their home, who live in an area with somewhat similar housing, and who have a home in relatively good shape.

Listing with an agent

Listing with a top real estate agent can also result in a fast sale, especially in a seller-friendly market. An agent can provide a comparative market analysis (CMA), which helps determine an appropriate listing price and estimate the time to sell. Many agents offer CMAs, often free.

Partnering with a proven agent can yield the highest selling price and they may even connect you with buyers offering cash closer to market value. If you are interested in exploring the agent option, HomeLight can connect you with a top-performing real estate agent in your area today.

FAQs on Minneapolis house-buying companies

Are We Buy Houses for Cash companies legit or scams?

Most We Buy Houses for Cash companies are legitimate, as this business model has been around for decades.

However, it’s always a good idea to keep an eye out for scams, or anything that just doesn’t seem right. Always thoroughly research companies ahead of time. Verify all professional licenses, check customer reviews, get a referral if possible, and vet the company on the Better Business Bureau website.

How much will We Buy Houses for Cash companies in Minneapolis pay?

Most cash-for-homes companies follow the 70% rule, meaning they’ll offer you 70% of your home’s after-repair value (ARV), minus repair costs.

Here’s what that simple formula looks like:

(Your home’s ARV x .70) – repair costs

Now let’s take a look at a practical example. Let’s say your Minneapolis foursquare-style home could sell for $350,000 after repairs, but it’s going to need $30,000 of work to get there.

($350,000 x .70) – $30,000 = $215,000

In this example, a Minneapolis cash-for-homes company will probably offer you about $215,000 for your property.

However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more like 90% to 95% of market value while charging a fee for their services.

How much does selling a home to a We Buy Houses for Cash company in Minneapolis cost?

Selling a home to a We Buy Houses for Cash company shouldn’t cost you any money, though you’ll likely get less overall for your home.

Since these companies are geared toward distressed homes, they tend to have zero fees, and will even cover your closing costs. That means the offer you get is the price you should walk away with. Make sure to ask about any hidden program fees that could eat into your bottom line.

How do you sell a house for cash in Minneapolis?

1. Research and vet house buying companies available in your area. The above list is a great place to start.
2. Submit offer requests to your top few companies.
3. Schedule any on-site visits.
4. Field and compare offers. Choose the best option for you.
5. Close in a week to 30 days and get paid. You can often choose a later closing date, up to 90 days after receiving the offer.

We Buy Houses for Cash in Minneapolis vs. top Minneapolis agent

Wondering how a We Buy Houses for Cash company stacks up against working with a real estate agent? We’ve got you covered.

Example net proceeds

Let’s say your Italianate home in Minneapolis is currently worth about $400,000 and needs about $15,000 in repairs. Once the repairs are made, the home should be worth about $415,000.

Financially it’s usually in your best interest to go with a top agent, but depending on the condition of your home and any repairs needed, selling on the open market could be challenging.

House-buying companies can be a good alternative for Minneapolis sellers in need of a quick exit from homeownership, but they’re not without drawbacks. However you choose to sell your home, it’s important to avoid making a hasty decision.

For best results, take the time to consider your options, gather offers from multiple companies, and consider consulting with a top agent to see how easily your property could sell on the market. Whatever you decide, HomeLight would be happy to help with your real estate needs!

Writer Chelsea Levinson contributed to this post.

Header Image Source: (Andrew S / Unsplash)