It is nearly impossible to drive anywhere in Tulsa, Oklahoma without seeing a “We Pay Cash for Houses” sign sticking out of the ground or hanging on a telephone pole. This can seem very appealing to someone who has bills piling up but no clear way to pay for them all.
After all, where else can you sell your house and receive cash right away without the hassle of dealing with a real estate agent? On top of that, you don’t need to worry about paying commission to a realtor or waiting months for a closing date before you get paid. Sounds good, right?
To some people, these “we buy houses” advertisements might seem too good to be true. Why would a company offer to purchase a house for cash? To put it mildly, these are legitimate real estate investment companies that’ll truly offer you cash for your house. The only thing is they won’t offer you the fair market value for your house. Their goal is to purchase your house cheap so that they can make a profit by flipping your house.
Even if your house needs some TLC or renovation work done, they will still purchase your house anyway. Then all they’ll do is fix it up and resell it for a profit afterwards. If you cannot sell your house in the traditional marketplace and you need money quickly, then selling it to one of these companies may prove to be a good idea. But it’s not for everybody, though. If you have time and equity in your house then selling traditionally with a realtor may be best. But if you need to sell fast and cash out then use one of these “WE BUY HOUSES” companies.
How Do These Home Buyer Companies Operate?
Real estate companies in Tulsa that advertise “We Buy Houses” are looking to purchase houses at under their market value. They are mainly targeting homeowners who are needing relief from a financial burden and need money quickly. Perhaps these sellers have too many repairs to fix, or they just lost their job and need to move quickly. Whatever the reason, they’re willing to sell their house for less than market value if it means they get out of their ownership responsibilities quickly.
First, the seller contacts the company and provides them with basic information about their house. A buyer from the company then determines the estimated value of the property. They’ll likely want to inspect the house personally too. Once that is done, the buyer will make the seller an offer. If the offer is acceptable to the seller, then the buyer will create a sales contract. No real estate brokers or agents are used here, so no commissions need to be paid.
Which Tulsa Homeowners Are Targeted the Most?
A “We Buy Houses” real estate investment company looks for sellers who cannot sell their home for its true value on the market. Perhaps a house has expensive repairs needed, and the seller doesn’t want to pay for them. Either that or a seller may not want to wait months or years to sell their house on the market. To them, it is worth selling quickly for less money if it means they’re finally free from having to deal with the upkeep of their house. In some scenarios, a person may inherit a house they don’t want from a family member who just passed away. So, they’ll just sell the house quickly in order to get some fast cash.
It is not uncommon for divorced couples to want to sell their house fast as well. Since they both own the house but no longer want to be together, the only logical thing for them to do is sell the house quickly and move on separately with their lives. In order to do this, they’ll contact one of these “We Buy Houses” buyers. This relieves a lot of the normal stress involved with selling a home during a divorce.
How Do These Companies Pay Cash for Homes?
The business model of a home buying company is to purchase homes in cash and then flip them for a profit. They don’t use mortgages or loans to purchase their houses. If they do get a loan it’s usually funded by a private bank or lender that doesn’t need to jump through a bunch of red tape that slows down traditional closings. To them, home buying is just another investment that they will make money on. They already have cash on hand available to make these investments, especially if they’ve already been successful with their past investments. That is why purchasing homes in cash is not a problem for them.
Do not trust all home buying companies, though. There are scammers in this industry who’ll try to offer you a rotten deal if you’re not careful. It is best to research the home buying company that you’re thinking about selling your house to. Make sure they have positive customer reviews or testimonies.
Sometimes these home buying companies will use a hard money loan to purchase a house. This is basically a loan where the buyer uses another property of theirs as collateral in order to get approved for the loan. Their credit score does not even matter in this case. After that, they take the hard money loan and purchase another house with it.
In other scenarios, home buying companies have angel investors that help them fund their home purchases. If these investors believe that a particular home buying company is profitable and successful, then these investors will put up their money for the company to purchase these houses. In exchange, the investors will receive a cut of the profits if the properties are successfully flipped.
We Buy Homes in Tulsa Scams
It is easy to fall for scams carried on by illegitimate home buying companies. Fortunately, most people have access to a computer and internet search engine. It makes researching these companies so much easier.
When you come across a “We Buy Houses” sign on the street, write down the phone number and name of the company that is on the sign. If there is no name listed on the sign, then you can immediately assume it is a scammer. A lot of these scammers like just to advertise a phone number which is untraceable. It may get routed to some third-party voice service like Google Voice in order to protect their identity. This is definitely not something that a legitimate and honest company would do.
Now if the sign has a company name, just go to Google and search that name. Maybe type in the company name and then “reviews” after it. This should bring up a bunch of review listings for that company if they exist. Check out what people are saying about the company online and see if it’s positive or negative. If you can find a company which has advertisements on media outlets, that’s even better.
Also, check out the website of the company and see how professional it is. You may see testimonials or reviews published on the website, but don’t trust them. There is no telling whether the company has falsified those reviews. It is better to get reviews from a third-party source which they have no control over, such as Yelp or Google Reviews. You may also want to visit their Facebook fan page and see if anyone on Facebook is saying nice things about them. Other social media platforms you could also try are LinkedIn and Twitter.
Any reputable company should have established themselves. Social media and/or search engines must show something about them. If you don’t see any online reviews left for a company, then continue your search for another company that does have reviews. A company with no reviews is more than likely a scammer.
The Better Business Bureau is another place to check for reviews. Although some legitimate companies are not registered with them, it never hurts to check the BBB website and see if they’ve accredited a particular company. If that company is accredited, but they’ve received negative reviews from their customers, you will see a letter grade published for that company on their BBB profile page. That should tell you all that you need to know.
Not All Sellers Should Use Tulsa House Buying Companies
Homeowners are usually desperate to sell if they use a house buying company. Perhaps they are financially strapped and need cash quickly, or they simply want to move now and not have to wait for their house to sell on the market. However, it may not be in the interest of every seller to sell their home to a house buying company and receive less than market value for it.
The trick is not to act too desperate or else the house buying company will try to give you an unfair offer on your house. You may be eager to sell, but don’t get caught up with a scammer who’ll give you little to no money for your house. Make sure you get all negotiations and terms in writing. And, of course, research the company thoroughly and verify that they have a history of providing customer satisfaction.
The biggest challenge is reviewing the contract and understanding all the provisions. A lot of scam companies will try to place hidden contingencies in the contracts. These contingencies give them the right to get out of the contract. Some of the common contingencies include home inspection requirements, repair cost value, appraisal value, number of days for financing, and lender approval. Now that’s not to say they have to buy the house if the inspection uncovers $20,000 in foundation repairs needed. In this case the investor can ask you to lower your price to make the deal work. This is reasonable on such high dollars repair. But if it’s just a small repair like leaking faucets then that is a lame excuse to back out of a deal.
If you see a few negative reviews for a company, it doesn’t necessarily mean they’re a scammer. Sometimes a company may have a few bad deals with people, but you’ll want most of their reviews to be positive. They should also have a professional and knowledgeable team. If these elements check out, then you might be able to trust them.
Hopefully, you now have a better understanding of how to judge a home buying company. Whenever you see a sign on the side of the road which states “we buy homes in Tulsa, Oklahoma” or something similar, then do your research and find out as much as you can about the company before you contact them. This will increase your chances of having a successful transaction where you receive a fair cash offer from a company that is ready to pay quickly.
We are the company who buys houses in Tulsa. We are at your service. We look forward to hearing from you!