Have You Seen Those We Buy Houses, We Buy Houses For Cash, And We Buy Houses In Any Condition Signs Posted Up All Around The Country?
I guess because we are in the house buying business we often get asked, “What’s up with all of those “We buy houses” signs on practically every street corner and many telephone poles. Most often these “investors” use yellow signs with black ink because this color combo “scientifically” stands out best, but I’ve seen just about every color combo. What really gets me is who is buying the house. I’ve seen signs for “Big Mama”, “Uncle Willy”, “Jimbo”, “Bubba” and just about every redneck name you can think of that wants to buy my house (no offense rednecks, just funny that it’s all rednecks that want to buy my home).
So are these “we buy houses” signs legit? And the answer is… it depends.
Who Are The People Behind Those We Buy Houses Signs?
Most of the people who put up all of these illegal (yes they are illegal and carry hefty fines if caught) signs have never purchased an investment home and have no intention of purchasing yours. Instead, they hope to get your home under contract WAY below market. They will then sell the contract to a true investor for 5, 10, 20k… these folks are called wholesalers. Now, there’s nothing inherently wrong with wholesaling. This is a service where they are connecting a buyer and seller and making a profit for doing so. Nothing wrong with that. The only issue is when unscrupulous wholesalers misrepresent the “we” in we buy houses. They “commit” to purchasing your home but don’t have the ability to do so. So, if they can’t find a buyer for your home at or above the agreed on price, they just walk away and you are now starting all over (kind of defeats the purpose of calling the sign, doesn’t it?).
Thankfully, some of the folks that put up those signs are real home investors. This is the exception, not the rule. Because of the hefty fines associated with these illegal bandit signs most investors with a reputation won’t do this form of advertising. Some will but most will find other ways to actually purchase a home and create a win-win for both the seller and themselves.
Typically, you can tell the difference between wholesalers and real investors by the contract they use. Wholesalers often put down small amounts of money (sometimes as little as $10), they will put 30+ day closing dates and often have contingencies like “contingent upon partner’s evaluation of the home”. Real buyers will usually put down more earnest money ($500+) they can close whenever you need and typically have much shorter inspection periods.
Fast Home Sales Is A Different Kind Of Real Estate Investment Company
Because of the illegal nature of these signs and the reputation that sometimes follows, you won’t ever connect with us by calling a bandit sign. Just me, but if I were doing something as big as selling a house, I would want to check online, read reviews, watch testimonial videos and make sure that when someone says “we buy houses” they will actually follow-through and make the purchase. Not sure I’d want to trust such a big decision to companies that are breaking the law in their need to “purchase” another home.
Here at Fast Home Sales, we offer a fair, fast and flexible way to sell your home. We will never use these types of “tactics or tricks” to get you to sell to us.