If you are looking to sell your Philadelphia home but don’t want to do the hard work of finding a buyer for it, you may wonder if there is an easier way. There is! Philadelphia companies that buy houses are ready to buy your property, no matter what condition it’s in. They will take care of all aspects of the sale and repairs so you can focus on the move-out process. This article discusses how these companies operate and some considerations when using them.
Philadelphia Companies That Buy Houses
If you’re considering selling your house but don’t know how to go about doing so, we’re here to help! This blog post discusses all there is to know about companies that buy houses.
First, we’ll answer what home buying companies are and why selling to one may be helpful, especially if your home is not in great condition or you need to sell your house fast.
Then we’ll list down the different types of companies that buy houses for cash. Finally, we’ll discuss the process of working with these companies and if there are any costs involved. So let’s get started!
What are Home Buying Companies?
When looking to sell your home, you may want to consider using a Philadelphia company that buys houses. But what are home buying companies? These are companies that specialize in the purchase of residential properties. Unlike a traditional sale, they will buy your house, regardless of its condition, and take care of all the necessary steps to complete the sale.
This can be a great option if you’re looking to sell quickly or don’t want to deal with the hassle of finding a buyer yourself.
Working directly with a homebuyer also means you won’t have to list on the open market with a top agent, work with a buyer’s agent, or go through a brokerage, which can provide savings of 5-6% in realtor fees.
Furthermore, home buying companies are also helpful with unique selling situations like
foreclosure, bankruptcy, or divorce and can provide fast closings.
There are many different types of home buying companies and we will discuss each one in detail below.
Types of Companies that Buy Houses for Cash
Generally, you’ll come across three different types of companies that buy houses for cash.
- Local Cash Homebuyer or Real Estate Investor– this could be a single person or small group of investors that buy and sell real estate in your area. Their goal is to help the community by renovating properties for resale or keeping them as rental properties instead. House buyers may also be called house flippers. An example of a “buy my house Pennsylvania” buyer would be Problem Property Pals.
Usually, a home buyer or investor will make you a fair cash offer within 24-hours and offer a quick closing within 7-14 days. They don’t require home repairs and can assist you if you have tax liens, are trying to avoid foreclosure, have code violations, or are going through probate. In addition, they don’t charge realtor commissions and may even cover closing costs.
If you’re interested in working with local companies that buy houses in Philadelphia, make sure to visit their website, read reviews, and see if they are a Better Business Bureau accredited business. This will ensure you are working with a reputable buyer in your area and not a scam.
- Investor Networks– Investor networks include bigger firms that buy and sell in numerous markets and have been operating for several years. Their objective is to promote local franchises using marketing campaigns in their target real estate markets. They typically acquire and flip houses, although there are some exceptions.
Usually, you will contact the investor network and a local franchisee will contact you to get information about your home. Within 24-hours they will make you a fair price offer for your property, and they generally offer a quick sale, closing on average within 3-weeks.
If you’re interested in working with an investor network make sure to visit their website, read reviews and see if they are a BBB accredited business. This will ensure you are working with a reputable investor network group in your area, not a scam.
- iBuyers: iBuyers are generally huge corporations that buy and sell houses over the internet. Their business model frequently uses computer algorithms to determine a property’s value without ever seeing it. iBuyers also have target real estate markets they purchase in and other markets that they avoid. They prefer properties to be in good condition and may require repairs or a home inspection before they buy the home. They usually don’t purchase homes in poor condition or distressed properties. You should also be aware that working with an iBuyer frequently includes a high service fee.
If you’re interested in working with an iBuyer make sure to visit their website, read reviews, and see if they are a BBB accredited business. This will ensure you are working with a reputable iBuyer in your area. Lastly, don’t forget to ask how much their service fees cost, whether they require home repairs and if they buy houses in your area.
When selling to an investor network or iBuyer, the process tends to be more of a business transaction, usually with a take-it or leave-it approach. However, if you like a more cut-and-dry transaction when it comes to selling your Philly house, working with an investor network or iBuyer may be for you.
But since you are selling your home, you may want a warmer approach which working with a local cash home buyer could offer.
Some people don’t have a problem selling to a large company; however, others prefer to sell their homes to a local resident.
How Home Buying Companies Work in Pennsylvania
Most home buying companies work the same in Pennsylvania. Below is a list of steps you should expect when it comes to the process of selling a house for cash.
Step 1: Contact a Local Homebuyer
Once you’ve finished the vetting process and found a homebuyer you’d like to work with that has good customer reviews, either fill out a form on their website or give them a call. It’s important to speak to them if you have any questions or to confirm things like no repairs are required, they don’t charge realtor commissions and you can pick the closing date.
They may also ask you some questions too, for example:
- What condition is your home in?
- Do you have any necessary repairs that need to be made?
- What is your reasoning for moving/selling?
- What does your timeframe look like to sell?
From there they’ll schedule a time to either see the house in person or to do a video walk-thru of the home. The good news is there should only be one showing! No open houses necessary.
Step 2: Get Your Cash Offer
Once the homebuyer sees your house in person or via video, they’ll present you with a no-obligation free cash offer typically within 24-hours. Remember this offer is for your home in its current condition and shouldn’t include realtor fees.
You can either decide to accept or decline the offer. Something to keep in mind, when selling a house as-is, there are usually repair costs involved that the new owner will have to incur. That said, you probably shouldn’t expect top dollar for your current home but rather a fair market value that takes into account necessary repair costs.
If you decide to accept the offer you’ll then sign a home sale contract, agree to the purchase price and pick a closing date at a local title company.
Step 3: Sell Your House!
Closing time has arrived and you officially sell your house for cash! You’ll be able to focus on moving into your new home and won’t have to do any cleaning before you leave. Although you may think you’ll get a briefcase full of cash, payment is usually made via wire transfer or by cashier’s check.
These are the typical steps involved when selling to a “We buy houses Philly” company. However, home selling with an investor network or iBuyer may look a little differently and include service fees or longer closing timeframes.
Are There Any Costs In Working with a Home Buying Company
Although it may sound too good to be true, there are no costs in working with a home buying company, that is if you work with one like Problem Property Pals.
However, this is why visiting the different homebuyer’s websites is important when deciding who to sell your Philadelphia property to.
- Firstly, homebuyers shouldn’t charge any fees to make you an offer for your home. If they do, be advised not to work with that particular home buyer. The cash offer should be free and you should be under no obligation to accept it.
- Secondly, they should not charge any realtor fees. As long as you’re not using a realtor there should be no real estate agent commission to pay. This is a cost savings of 5-6% of the sale price of your home. For example, the average market value of a home in Philadelphia is $254.9K, using that price the agent’s commission would cost $12,745- $15,294.
- Thirdly, they may cover closing costs. Another expense home sellers tend to forget about is closing costs. Closing costs will vary by state, however, the average closing costs in Pennsylvania rank as some of the country’s highest after taxes. Typically for a buyer, closing costs can be about 5% to 6% of the home’s value.
In Pennsylvania, the average closing cost before taxes is roughly $4,000. After taxes, closing costs can average around $10,000. So overall, you can expect the total closing costs to range between $6,000 and $15,000, depending on the actual value of the home and region of Pennsylvania.
Some homebuyers will offer to cover all or some of the closing costs, so you’ll want to find out if this is the case with the homebuyer you’re looking to work with.
- Lastly, service fees are costs you’ll want to see if the company you work with charges. Service fees or convenience fees are typically seen when working with iBuyers. Reports have shown that iBuyers can cost home sellers about 13% to 15% of a home’s sale price. Another iBuyer advertised a 5% service fee but it can be lower or higher based on how long they estimate it will take to sell your home.
Given that these service fees can drastically change the amount of money you receive for your home, it’s important to be aware of them before signing a contract with an iBuyer.
Ultimately, this is why most home sellers prefer working with a local home buyer instead.
Working with a local cash home buyer like Problem Property Pals is typically the best option for Philadelphia homeowners who are looking to sell their property for cash.
As you’ve discovered, selling to a cash home buyer includes free cash offers, no realtor fees, no repairs, and they may even cover closing costs. By working with a local home buying company you’ll be able to save time and avoid stress while saving money on repairs and commissions!
If you’re interested in selling your house as-is to a local home buyer contact Problem Property Pals today!