What to Know about “We Buy Houses” Companies
By José Medina González, Fort Bliss Legal Assistance Office
It has become common to see “We Buy Houses for Cash” signs pasted to light poles or fences in our communities. For someone trying to sell a house, these solicitations might seem attractive at first, it might seem like a great solution, especially for someone going through a financial crisis or needing to move to a new location quickly. However, it is always smart to double-check to ensure that these claims are not too good to be true.
A big reason these offers catch people’s attention is because of the way they seemingly simplify the house-selling process. The signs are usually handwritten, the message is short, and it sounds like someone just wants to help you out fast. For people whose need to sell their house has them stressed or in a tough spot, that kind of offer can be very appealing when compared to the alternatives of having to deal with mounds of paperwork or long wait times.
These companies usually promise to buy the house quickly, pay in cash, and take it “as is.” That sounds convenient, but the truth is they are often offering far less than what the home is really worth. The idea is to buy it at a low price and later fix it up or resell it for a higher price, sometimes without making any major repairs. Many sellers take the first offer because it seems like the easiest way out, especially if they are under pressure, but that decision can end up costing more in the long run.
The Federal Trade Commission has actually warned people about these types of deals. Some companies pressure homeowners into making quick decisions and use contracts full of confusing legal terms. For those unfamiliar with legal language, it is easy to sign something without fully understanding the consequences. Additionally, organizations like the Better Business Bureau have reported that many of these companies either are not properly licensed or have numerous complaints filed against them. This alone is a good reason to proceed with caution.
In some cases, the company will offer to let the former owner stay in the house and rent it after they buy it. That might sound helpful, but it is risky. Once the house is sold, the person is no longer the owner, and if something goes wrong, like missing a payment or having a disagreement, they could end up being evicted. The National Association of Realtors has talked about these situations, warning that some deals sneak in hidden fees or ask for signatures on documents before any money changes hands.
Before agreeing to anything, it is a good idea to speak with a real estate agent or a lawyer. They can walk you through what your house is actually worth and explain any fine print. ProPublica conducted an investigation and found that some of these companies target homeowners who are in difficult situations, such as older individuals or those who really need to sell quickly, to include service members who are required to change duty stations. They take advantage of that pressure to make offers far beneath the property’s value.
Taking the time to ask questions and look over the details closely can help avoid a deal that may do more harm than good.
To speak with an attorney in the Fort Bliss Legal Assistance Office on this or any other topic, please schedule an appointment by emailing usarmy.bliss.hqda-otjag.mesg.bliss-legal-assistance-office@army.mil, or calling (915) 568-7141 during LAO business hours.