We Buy Houses Providence: Top 5 Companies
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
Selling your Providence home can be a challenge, especially if you need to sell quickly or if your property requires extensive repairs that would delay you from placing it for sale on the open market.
We Buy Houses companies in Providence will pay cash for property in almost any condition, often completing the transaction in only a few days.
These companies are great for homeowners who need to sell their homes quickly regardless of the circumstances — the threat of foreclosure, a sudden change in employment, or the need to downsize, for example.
In this post, we’ll discuss the pros and cons of working with house-buying companies in Providence, compare them with other quick-sale options like iBuyers and real estate agents, provide tips for vetting cash buyers, and show you how the process works.
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Disclaimer: This post is meant to be used for educational purposes only and does not constitute legal or financial advice. Links and mentions of Providence area “We Buy Houses” companies should not be considered an endorsement.
Working with house-buying companies in Providence
Working with house-buying companies in Providence is simple, especially when compared to selling on the traditional real estate market. Here’s a quick overview of how it works:
1. Contact a company: Reach out to a reputable house-buying company in Providence to express your interest in selling.
2. Provide property details: Share basic information about your home, such as its location, size, and condition.
3. Schedule a home visit: Arrange for a representative to visit your property and assess its value and condition.
4. Receive a cash offer: After the assessment, the company will present you with a no-obligation cash offer for your home.
5. Review and accept the offer: Take your time to review the offer. If you’re satisfied, accept the terms provided by the company.
6. Close the sale: Work with the company to complete the necessary paperwork and finalize the sale, often within days or weeks.
Popular We Buy Houses for Cash companies in Providence
If the process of selling to a house-buying company in Providence sounds 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 or your parents’ Colonial-style or Victorian-style home. By selling to one of these companies, you should be able to sell your Providence home in as little as a week or two.
Ocean State Buyers
Ocean State Buyers is a local home-buying company that buys homes throughout Rhode Island and parts of Massachusetts. The company will provide a cash offer within 24 hours of reviewing your property and is flexible on the closing timeline. You can complete the process in as little as seven days or on a schedule that works for your needs.
Locations: Rhode Island, including Providence, and Massachusetts
Closing costs: Sellers pay no closing costs; Ocean State Buyers cover them.
Ocean State Buyers has been BBB accredited since early 2018 and holds an A+ rating. It currently has a 5-star rating on Google. Customers speak to a “fair” and “honest” team that went “above and beyond.” They express that the process was “straightforward,” and the team was very knowledgeable and helpful throughout the process.
Website: oceanstatebuyer.com
Phone number: 401-318-3125
Simple Sale (a HomeLight platform)
Simple Sale, a solution from HomeLight, is an online platform where sellers in Providence (and across the country) can request a cash offer for their home. Simple Sale connects you to the largest network of cash buyers in the U.S. Partner investors have a wide range of investment strategies, including fix-and-flip and buy-and-hold. This enables Simple Sale to provide cash offers for a wide array of properties, even those that need some or a lot of work, in different locations throughout Providence.
With Simple Sale, you can get a no-obligation, all-cash offer in 24 hours and sell your home in as few as 10 days, skipping the months it can take to sell the traditional way.
Locations: Nationwide, including Providence, RI.
Closing costs: No prep costs, agent commissions, or fees charged by HomeLight. Individual investor fees may vary.
Simple Sale is a HomeLight platform. HomeLight was founded in 2012 and is BBB-accredited with an A+ rating. The company has 4.8 stars on Google based on hundreds of user reviews. 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.
Learn more: homelight.com/simple
Phone: 844-488-8455
401HomeBuyers
Started in 2020, 401HomeBuyers is owned by a pair of local real estate investors who are knowledgeable about the Rhode Island market. The company will purchase your home via a three-step process. If an offer is accepted, 401HomeBuyers works with a trusted attorney’s office in Rhode Island to complete the transaction.
Locations: Providence and all of Rhode Island
Closing costs: Sellers pay no closing costs; 401HomeBuyers covers them.
Since June 2020, 401HomeBuyers has been BBB accredited with an A+ rating. It holds a 5-star Google rating. Customers speak to a caring and “friendly” team that “made the process easy.” They express how knowledgeable the company was and how “timely” everything was completed.
Website: 401homebuyers.com
Phone number: 401-541-5560
Lyon Home Buyers
Lyon Home Buyers is a family-owned business based in Warwick, Rhode Island. It is owned by an Ocean State native who also runs Lyon Property Group, a property management company that manages more than 600 apartments across the state.
Locations: Providence and all of Rhode Island
Closing costs: Sellers pay no closing costs; Lyon Home Buyers covers them.
Lyon Home Buyers is not yet BBB accredited, but it holds an A+ rating. It also has a 5-star Google rating. Customers speak to a company that was very straightforward and educated sellers throughout the process.
Website: lyonhomebuyers.com
Phone number: 401-425-4010
Ocean City Development
Ocean City Development is a New England-based company that has been buying and developing homes since 2008. After an inspection, and once you agree to the terms, it will schedule a closing date that works for your schedule. The process takes between two and four weeks, according to Ocean City Development’s website.
Locations: Ocean City Development services more than 15 locations in Rhode Island. The company website includes a full list, including Providence.
Closing costs: Sellers pay no closing costs; Ocean City Development covers them.
Ocean City Development has been BBB accredited since September 2017 and holds an A+ rating. It currently has a customer rating of 4.69 on BBB and 5.0 stars on Google. Customer reviews speak to the team’s patience as sellers learned the process and decided the best steps for their families.
Website: ocbuyshouses.com/ri/
Phone number: 401-425-4010
Why sell your Providence house for cash?
Selling your home for cash is a great option for anyone needing to dispose of their home quickly or who does not want to deal with the hassle of selling on the traditional real estate market.
In Providence, it typically takes around 91 days to sell a home on the market using an agent. That includes an average of 49 days on the market plus the typical 42 days a buyer needs to close on a purchase loan.
Compare that to the typical seven to 10 days promised by many house-buying companies in Providence, and it’s clear why these Cash-For-Homes groups are an attractive option, even though they don’t always offer top-dollar for the homes they purchase.
Here are some common scenarios where choosing a house-buying company might be a fitting solution.
- Job relocation: You need to move quickly for a new job relocation and don’t have time to list your home traditionally.
- Divorce: You want to expedite the sale to finalize your divorce and split assets efficiently.
- Inherited property: You’ve inherited a house you don’t want to keep and prefer to sell it quickly.
- Downsizing: You’re looking to downsize and want a fast, hassle-free sale without the need for open houses.
- Major repairs needed: Your home requires significant repairs, like fixing foundation issues, and you lack the funds or desire to address them.
- Facing foreclosure: You need to sell your home quickly to avoid foreclosure and settle your debts.
- Problem tenants: You have rental property with problematic tenants and want to sell without the stress of managing the situation.
- Selling from out of state: You’re selling from out of state and want the convenience of a quick cash sale without traveling back and forth.
Pros and cons of house-buying companies in Providence
House-buying companies in Providence offer distinct advantages and disadvantages that you should consider before deciding. Here are the key pros and cons to help you weigh your options.
- Quick sale: These companies can often close deals in as little as a week, providing you with fast access to cash.
- No repairs needed: You can sell your home as-is, avoiding the hassle and expense of making repairs.
- No staging or showings: There’s no need to stage your home or accommodate showings, making the process less stressful.
- Fewer contingencies: Sales typically have fewer contingencies, reducing the chances of the deal falling through.
However, a house-buying company in Providence will likely offer you below market value for your home compared to selling on the market with an experienced real estate agent. Here are the key drawbacks:
- Lower offers: You may receive a significantly lower offer than what you could get on the open market.
- Potential for scams: There’s a risk of encountering scams if you don’t thoroughly vet the company.
- Less negotiation power: These companies typically present take-it-or-leave-it offers, leaving you with little room for negotiation.
- Limited buyer pool: Relying on these companies limits you to a specific type of buyer, potentially missing out on other offers.
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.
Vet cash buyers and know your home’s worth
Vetting any company you’re considering selling your home to is a good idea. While most buyers are reputable, it’s a good idea to give any potential buyer a thorough look. Here are some simple steps you should follow:
- Check reviews: Look up online reviews and testimonials to gauge the company’s reputation and past performance.
- Research the company: Investigate the company’s presence in the market, including its history and any available performance data.
- Read testimonials: Read firsthand accounts from previous sellers to understand their experiences and the level of service provided.
- Understand the offer: Before committing, carefully read the buying agreement to ensure you understand all terms and conditions.
- Know your home’s worth: Get an independent appraisal or market analysis to know your home’s value and ensure the offer is fair.
HomeLight suggests you consult with an experienced local agent to get a better idea of what your home might be worth if sold on the open market. Then, compare your cash offer. HomeLight can connect you with a top-performing agent in your market. You can also use HomeLight’s Home Value Estimator to get an initial ballpark estimate in less than two minutes.
Other options to sell your Providence home quickly
iBuyers
iBuyers, or instant buyers, use automated valuation models (AVMs) to provide near-instant home value estimates and offer a mostly online home sale experience.
They provide all-cash offers, typically closer to market value for homes in good condition, with a quick closing process of a few days to two weeks. However, iBuyers like Opendoor and Offerpad often charge service fees of 5%-6%.
Listing with an agent
Though this may seem out of place, listing with a top real estate agent can result in a quick sale in a seller-friendly market. Using an agent could yield the highest price, with the top 5% selling homes for up to 10% more.
You’ll also get a comparative market analysis (CMA), often free, which helps set an appropriate listing price. An experienced agent might even connect you with cash buyers. If interested, HomeLight can connect you with a top-performing agent in your area.
FAQs on Providence house-buying companies
By and large, most We Buy Houses for Cash companies in Providence are legitimate businesses. Their services and transaction fees may differ, but the business model has been around for decades. If you use an established group with a track record, you can be fairly confident that it’s legit.
That said, as with any financial transaction, it’s a good idea to be on the alert for scams. Always research companies before you sign a contract. Check customer reviews, look at their online presence, verify professional licenses, get a referral if possible, and vet the company on the Better Business Bureau website. Watch for anything that just doesn’t seem right.
As described in our pros and cons list above, most Providence We Buy Houses for Cash companies apply the 70% rule, meaning they’ll offer you about 70% of your home’s after-repair value minus their estimated repair costs.
Here’s an example of what a simplified formula might look like:
(Your home’s ARV x .70) – repair costs
To see how this might work in a real-world scenario, let’s take a look at an example offer equation. Let’s say your Providence Colonial-style home could sell for $350,000 after repairs, but it will need $30,000 of work to get there.
($350,000 x .70) – $30,000 = $215,000
In this example, a Providence We Buy Houses company might offer you around $215,000 for your home.
However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more than We Buy Houses companies because iBuyers look for homes in better condition. An iBuyer might pay you 90% or more of market value while charging a fee for their services.
When you accept an offer from a Providence We Buy Houses for Cash company, you will likely be faced with a double-edged sword. On the one hand, it shouldn’t cost you any additional money because these companies make an offer and handle almost everything once it is accepted. Conversely, you’ll likely get less money overall for your home.
Because We Buy Houses for Cash companies tend to focus on distressed homes, they typically have zero fees. Many will even cover your closing costs. In most cases, this means that the cash offer you receive will be the price you walk away with at the end of the deal. Of course, asking the company if any hidden program fees might impact your bottom line is always a good idea.
1. Research and vet the house-buying companies that serve your Providence area. Our list above is a good place to start.
2. Submit offer requests to a few of the companies you like best.
3. Schedule any required on-site property visits.
4. Compare offers. Weigh the pros and cons and choose the best option for you.
5. Close the sale in a week to 30 days and get paid. (Some companies will let you choose a closing date up to 90 days after accepting the offer, which can be helpful when planning a move.)
We Buy Houses for Cash in Providence vs. top Providence agent
Another helpful exercise is to compare how a We Buy Houses for Cash company might stack up against working with a real estate agent. Let’s take a glance at how different aspects of the sale might look and compare possible proceeds.
| Aspect of the sale | Sell to a We Buy Houses for Cash company in Providence | Sell with a top Realtor in Providence |
| Selling timeline | 7 to 30 days | 91 days average; 49 to attract an offer, 42 to close the loan |
| Home preparations | None | Deep clean, declutter, make necessary repairs, landscape, stage home |
| Showings | None | 10 to 25 showings average |
| Inspections / repairs | None | May need to make additional repairs for the buyer or renegotiate the price |
| Appraisal | None | May need to lower your asking price if the appraisal comes in low |
| Title search | Cash-For-Homes companies often handle title issues | Must clear title before you can sell the home |
| Financing contingency | None | Mortgaged buyers use a financing contingency that could hold up the deal if the buyer’s loan doesn’t clear |
| Agent commission | None | 5.8% average |
| Closing costs | None | 1% to 3% of the home sale price on top of agent commission |
Example net proceeds
Below, we’ve compiled one example of how net proceeds may differ between selling a home to a We Buy Houses for Cash company and an agent-assisted sale.
Let’s say your home in Providence is worth about $450,000 and needs about $25,000 in repairs. Once the repairs are completed, the home might be worth around $475,000.
| Sell to a We Buy Houses for Cash company in Providence | Sell with a top Realtor in Providence | |
| Estimated sale price | ($475,000 x .70) – $25,000 = $307,500 | $450,000 |
| Market preparations | 0 | $4,500 (1% of sale price) |
| Agent commissions | 0 | $26,100 (5.8% of sale price) |
| Closing costs | 0 | $6,750 (1.5%) |
| Estimated take-home for seller | $307,500 | $412,650 |
As this example illustrates, financially, it’s usually in your best interest to partner with an experienced real estate agent.
However, net proceeds are not the only consideration when selling a home. What’s best in your situation will depend on the condition of your property, what level of repairs are needed, and your selling objectives. It could be that selling on the open market will be a challenge in your area, or the agent timeline might not fit your immediate needs.
Key takeaways
- Quick process: House-buying companies can offer a fast sale, often closing within a week or two.
- No repairs needed: You can sell your home as-is, avoiding the hassle and cost of repairs.
- Lower offers: Expect offers to be below market value compared to traditional sales.
- Few contingencies: Sales usually have fewer contingencies, reducing the risk of the deal falling through.
- Know your home’s worth: Always be aware of your property’s estimated market value before you proceed with a cash-offer company.
- Service fees: iBuyers may charge service fees of 5%-6%, impacting your net proceeds.
- Research is key: Vet companies thoroughly to avoid scams and ensure a fair deal.
At HomeLight, we’re happy to lend a guiding hand in navigating your real estate journey. Let us help you make an informed and confident decision, whether you’re looking for a no-obligation cash offer through a trusted platform like Simple Sale or seeking to consult with a top Providence agent.
Header Image Source: (Michael Denning/ Unsplash)
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