- February 14, 2022
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There are numerous types of companies that buy houses. These companies, as well as private investors, are nice to work with if you want to sell your home quickly, easily, and many times, for cash. You don’t have to do any upgrades, repairs, improvements – they will likely buy your home as is. What’s more, once you get their offer, and accept it, payment is expeditious.
As just referenced, however, not all companies that buy houses are the same. They can have different business goals, serve various areas, range in size, and more. Where home buying companies are concerned, the main categories in the market today will be explored below.
Local Investors
Purchasing houses in specific cities, states, and regions is the focus of some home buying companies. Under a unified brand, they have a multi-state or national presence. Here are some examples:
- A company associated with a brand that serves a wide area or specializes in your specific area.
- Individual businesses and investors that, when you search for “cash homebuyers in [your city]”, their names appear in the search results.
Trade-In Companies
If you’re purchasing a new home and you need enough funds to cover it, you might need to quickly sell your existing home. Some home buying companies, to make this a smoother process, specialize in or offer trade-in programs. They will free up your funds by buying your current home so you can buy your new home.
iBuyers
You may also hear these referred to as instant buyers. To make immediate, sight unseen offers on houses, these businesses use real estate market technology and data. They may charge a service fee to sellers and mainly concentrate on houses that don’t require much effort (repairs, contracted work, upgrades, etc.).
For comparison: A real estate agent’s commission is typically between 5% and 6%. So, not out of line with that, you can expect to see approximately 5.8% of a service fee to go to an iBuyer.
A concession credit may also be requested by them to cover expenses for repairs. Last year this came in at approximately 3.1%.
Companies That “Buy and Hold”
A company may have the intention of renting out houses for profit, so will buy and hold them. For their stakeholders or owners, their goal is to make an acceptable investment return. So, they look for properties that offer enough cash flow or potential equity – similar to flippers. They focus on renter-desirable types of properties and/or multifamily buildings. Their business model is: Buy, rehab, rent, refinance, repeat or “BRRRR”.
Flippers
These companies or individuals will, at a discount, purchase properties as investors and then add value by remodeling them. These house flippers then make a profit by quickly reselling the property. To boost equity, specific improvements are usually sought out by house flippers. These can include the following:
- A change to the layout
- An addition
- Mechanical repairs
- Cosmetic updates and more
On their investments, they shoot for, at the very least, a 10% return in most cases.
Contact Modern Feather Properties If You Want to Buy or Sell a House
We can help you buy or sell a home. Would you like to sell your home in or near Haslet, Texas? Or, perhaps, you would like to buy a Haslet property? To get started, contact Modern Feather Properties LLC. We are a family/veteran owned real estate investment company providing flexible solutions for today’s homebuyers and homeowners.
Modern Feather Properties is located at 536 Vidalia Court, in Haslet. Call 214-531-3310 to speak with a representative. If you prefer, email us at josh@modernfeather.com.