Pros and cons of home buying companies in St. George
If you’re thinking of selling to a St. George home buying company, it’s important to weigh the tradeoffs. These companies prioritize speed and convenience, but that convenience often comes with a lower price. Here’s what you need to know:
Benefits of Selling to a St. George Home Buying Company
- Quick close: Many home buying companies can complete your sale in 7 to 14 days, which is ideal if you need to move quickly. For context, selling through a local St. George agent typically takes about 115 days (on average). closing period of the loan plus average days on market in St. George, 74).
- No preparation required: Avoid costs and hassles related to repairs, upgrades, staging or cleaning. These buyers accept properties “as is.”
- No financing delays: Because these deals are cash based, there is no risk of your sale falling through due to unforeseen circumstances or mortgage approval issues.
- Low effort: No viewings, open days or lengthy negotiations; just a clear offer and a quick transaction.
Disadvantages of Selling to a St. George Home Buying Company
- Lower sales price: Selling to these companies usually means accepting a below-market offer, so you’ll likely get less than you would if you made an offer with a broker. Many We Buy Houses companies follow the 70% rule: they offer approximately 70% of the value after repairs (ARV) minus their estimated renovation costs.
- Example: If your St. George property has an appraised value of $575,000 and requires $30,000 in repairs, a bid can be calculated as follows: ($575,000 × 0.70) – $30,000 = $372,500.
- Here, a local cash buyer can offer around $372,500 for your home.
- Limited negotiation: Most home buying companies offer take-it-or-leave-it deals with little room to negotiate a higher price.
- Risk of fraud: Not all cash buyers are trustworthy; some are fraudulent schemes that prey on sellers in urgent situations with unfair contracts or hidden fees.
- Less protection for sellers: Compared to traditional home sales, these deals typically favor the buyer and may provide less legal protection for the seller.
It’s also worth noting that a top real estate agent in St. George may be able to help you sell for more than a typical cash offer.
After taking into account overhead costs like closing costs, real estate agent commissions and prep work, an agent-assisted sale can net you $543,375 or more in net proceeds – a big upgrade over most cash offers.
Your situation is important
The right strategy depends on the condition of your property, the repairs needed and your overall sales goals. If speed is your main concern, accepting a cash offer may be the best choice. However, if you want to maximize your sales proceeds, working with a reputable St. George real estate agent can result in higher returns.
Whichever option you choose, doing thorough research before making any big decisions (especially something as important as selling your home) is crucial.
Here at HomeLight, we recommend that you first consult with a knowledgeable local real estate professional. They can provide a realistic evaluation of your home’s market price and help you compare it to any cash offers you may receive. If you prefer, HomeLight can connect you with a top real estate agent in the St. George area.
Looking for a quick baseline? Use HomeLight’s Home Value Estimator to get an estimated value of your home in less than two minutes.
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