6 Top We Buy Houses for Cash Companies in Minnesota

Popular We Buy Houses for Cash companies in Minnesota

If these benefits of selling to a house-buying company in Minnesota 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 split-level rambler in St. Paul or your Spanish Colonial in Duluth. By selling to one of these companies, you should be able to sell your Minnesota 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 Minnesota?

There are plenty of reasons a Minnesota seller may choose to go the Cash-For-Homes route, speed and certainty being chief among them.

In Minnesota, it typically takes around 81 days to sell a home on the market using an agent. That includes an average of 38 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 We Buy Houses for Cash companies in Minnesota, 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 Minnesota sellers choose Cash-For-Homes companies over listing the traditional way.

• The home has major repair issues common in Minnesota, such as an unfinished basement, insufficient insulation, and energy-inefficient windows.
• The seller needs to move or cash in quickly due to divorce, job relocation, medical need, financial stress, etc.
• The seller doesn’t have the means or desire to make repairs.
• The seller doesn’t want to bother prepping the home, dealing with showings, negotiating, or navigating a long sales process.
• The seller prefers the privacy of selling their home off-market to a cash buyer.
• The seller is in the foreclosure process and wants to sell the home and settle up with the lender before it’s too late.
• The seller inherited property and wants to unload it as quickly as possible.
• The seller is a landlord who has problem tenants or no longer wishes to manage a rental property.
• The homeowner is aging and moving into a care facility, prompting their family to sell the home.
• The seller is living out of Minnesota and prefers the ease of a cash sale.

If any of these sounds like you, requesting a cash offer from a We Buy Houses for Cash company might be a good starting point, though it’s not your only option, and it may not be your best move (we’ll dive into your other options in just a minute!).

Pros and cons of house-buying companies in Minnesota

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

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?

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You can also use HomeLight’s free Home Value Estimator right now to get an initial ballpark 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 (or AVMs), to make you a near-instant offer on your home and provide a user-friendly, mostly online home sale experience.

iBuyers have only been around since the mid-2010s, but are now widely available across Minnesota.

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 85%-95% range.

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

Sellers who may be a good fit to work with an iBuyer in Minnesota 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

You want to sell your house quickly, not in 81 days. But hear us out! With many housing markets still being largely seller-friendly, many listings are flying off the market in a matter of days, especially those that are priced strategically.

Going with an agent could pay off big time. Selling on the market generally fetches the highest home price, and that’s especially true if you work with a skilled professional. Our internal transaction data at HomeLight shows that the top 5% of Minnesota real estate agents sell homes for up to 10% more than average agents.

This is a big financial decision, so it may make sense to consult with a trusted Minnesota real estate agent who can complete a comparative market analysis (CMA) to help you understand your home’s value and how quickly it’s likely to sell.

Your agent may even be able to connect you with cash buyers who are willing to offer closer to market value for your home.

Plus, a CMA is usually free and you’re under no obligation to list with the agent, so this may be a good tool to explore your options. Even if you end up deciding to work with a Cash-For-Homes company, at least you’ll know you’re making a sound financial decision.

Overwhelmed by finding an agent? HomeLight would be happy to connect you with a top performer in your area today.

FAQs on Minnesota house-buying companies

Are We Buy Houses for Cash companies legit or scams?

Most We Buy Houses for Cash companies are legit, and you can rest assured that 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 Minnesota pay?

Most Cash-For-Homes companies follow the 70% rule, meaning they’ll offer you 70% of your home’s after-repair value, 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 Minnesota modern farmhouse could sell for $352,000 after repairs, but it’s going to need $30,000 of work to get there.

($352,000 x .70) – $30,000 = $216,400

In this example, a Minnesota cash-for-homes company will probably offer you around $216,400 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 85%-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 Minnesota 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 Minnesota?

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 (or you can often choose a later closing date, up to 90 days after receiving the offer).

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

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

Example net proceeds

Let’s say your Spanish Colonial home in Bloomington is currently worth about $322,000 and needs about $30,000 in repairs. Once the repairs are made, the home should be worth around $352,000.

Obviously, 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 Minnesota 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 weigh 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 Minnesota real estate needs!

Writer Chelsea Levinson contributed to this post.

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