Pros and cons of house-buying companies in Riverview
Selling your home to a house-buying company in Riverview has some clear pros, particularly if you need to sell quickly and don’t want to deal with repairs or market uncertainty. These companies purchase homes in any condition, offering a streamlined process that’s often much faster than the average days on market in Riverview.
However, there are some major cons to consider, including receiving less than you might get with a traditional sale.
Pros of selling to a house-buying company in Riverview
Cons of selling to a house-buying company in Riverview
- Lower sale price: You will likely receive an offer that is below market value, meaning you could walk away with less money than if you sold with an agent. Most We Buy Houses companies use the 70% rule to determine their offering, meaning they will offer you about 70% of your home’s after-repair value minus their estimated repair costs.
- Example: If your Riverview home is worth $380,000 and needs $30,000 in repairs, an offer might look like this: ($380,000 × 0.70) – $30,000 = $236,000
- In this example, a Riverview We Buy Houses company might offer you around $236,000 for your home.
- Limited negotiation: Most house-buying companies present take-it-or-leave-it offers, giving you little room to negotiate a better price.
- Potential for scams: Not all cash buyers are reputable—some are scams that target desperate sellers with unfair deals or hidden fees.
- Fewer seller protections: Unlike a traditional home sale, these transactions typically favor the buyer and offer fewer contractual safeguards for the seller.
- Fewer options for sellers: If you need to maximize your profit, other selling options—like listing with an experienced agent—may be a better fit.
It’s also worth noting that a top Riverview real estate agent might be able to get you more value for your home than a cash offer.
For example, after factoring in potential closing costs, agent commissions, and market preparations, an agent might help you walk away with $359,100 for the same home as listed above.
Your situation matters
The best option for you depends on your home’s condition, repair needs, and selling goals. Cash buyers can be a good fit if time is a priority, but selling with a real estate agent may yield a higher price.
Proper vetting of any company you might enter into a major transaction with, like selling your home, is important.
HomeLight suggests you consult with an experienced local agent to understand better what your home might be worth if sold on the open market. Then, compare your cash offer. HomeLight can connect you with a top-performing agent in your market.
You can also use HomeLight’s Home Value Estimator to make an initial ballpark estimate in less than two minutes.
