When you are ready to sell your home, the traditional approach is to prepare it, put it on the market with a real estate agent, and wait for buyers to compete for a winning bid, which should result in financial gain for you. However, you can still sell your home if the conventional route doesn’t appeal to you or your circumstances make it difficult. It often involves selling your house to a business.
Different types of business in a house selling
Even though they may appear to be the same on the surface, there are many different kinds of businesses that are interested in purchasing your home, frequently for cash and in a short amount of time. If you’re thinking about selling your house to a company, they’re going to break down the different kinds of businesses and the ways they operate.
There are a few well-known national brands that buy homes for cash and operate as franchises. That means the person you’ll be working with is a local franchisee, so they have local knowledge.
In most cases, it will decide whether to flip a property with the help of local contractors or keep it for rental income. Depending on the company, the franchisees will then pay the larger company a regular fee or a portion of profits for the brand affiliation and any additional assistance that is required.
What is flipping a house?
Most likely, you are familiar with the idea of flipping a house: Investors acquire a run-down or outdated property, renovate it to make it move-in ready, and then sell it for (hopefully) more than the purchase and remodeling costs.
To reduce operating and holding costs, house flippers typically aim to flip a home within six months or a year. While cash buyer franchisees may flip homes, numerous independent local businesses may be able to close deals quickly by offering cash to homeowners.
No renovation needed
If they don’t have investors backing them up, you’re less likely to find individual homeowners with some contracting experience flipping houses with cash reserves to purchase and renovate without financing. The investor who will purchase your property and keep it to rent to tenants is another type of investor you might encounter. Most of the time, the investor wants to buy a house that needs some work to save money and will be renovated before leasing it.