If you’ve been driving around in Phoenix, chances are you’ve seen some billboards advertising companies that buy houses. It’s possible you’ve seen these individuals on tv, heard them on the radio, or maybe they’ve called you to “check in and see if you’d have any interest in selling your home”. The point is that cash home buyers are seemingly everywhere and it’s easy to wonder whether or not these companies are worth the hype.
Often times they say things like “We Buy Phoenix Houses!” or “Cash For Your House”. Most of the time these are real estate investors looking to acquire properties to fix and flip or to buy and hold as rentals. There is nothing wrong with their intentions. The problems arise when certain cash buying companies act unethically and put the homeowner at risk. Keep reading to learn more about these types of companies.
Are These “We Buy Houses in Phoenix Companies” Credible?
Spoiler alert: I am a cash home buyer in Phoenix. Is my opinion these companies biased? I don’t know for sure. I do believe people can run a profitable business while putting the needs of their clients before their own. I also believe people should trust who they sell their house to. That’s just me though. You’re probably wondering how you know if ALL the local house buying companies out there are honest and credible?
Well… sometimes they all look the same at the start… but below we’ll walk you through some things to look for in a local house buying company before you should work with them.
Buying and selling houses is a valid and respectable profession that can help communities and house sellers in many ways. For example, if there’s an eye sore property on a street filled with other well kept houses it is in the best interest of everyone on that street to get that property renovated and up to par. However, just like any other line of work – a minority of house buyers in any market are the ones who make the rest of us look bad. The bad eggs. The ones that ruin things for the rest of us.
There are people who are really great, ethical folks who improve their neighborhoods one property at a time. They understand the needs of their clients, communicate regularly, and act with integrity!
And then there’s shady, dishonest people who put money ahead of the well being of their clients and who would sign the contract to sell their own grandmother with one hand while stabbing you in the back with the other – as long as they were making enough money. It’s difficult to tell when you have at the beginning of your conversations with these companies because they may all sound the same.
Unfortunately, they are out there. It’s not unlike any other industry. There are good companies and bad companies no matter where you look and there are usually some pretty clear cut ways to sniff them out.
We’ll help you avoid these “shady house buyers” so you can work with honest, ethical, and trustworthy local companies who can buy your house for a fair all cash offer and close on your schedule.
But let’s not focus on the negative – at least not yet.
First, let’s cover exactly what the best house-flippers are doing.
What Reputable Phoenix House Buyers Are Doing
- Helping folks improve their lives by accessing the money they need right away. People often need the cash in their house to cover unexpected medical expenses, or to relocate to be close to a relative. We can make that happen in just a few days, and we deliver peace of mind. We alleviate the stress of having to sell a property.
- Helping sellers get rid of a burdensome property without the hassle of having to list it with a broker and wait months and month for a sale.
- Creating local jobs. We hire plumbers, contractors, electricians, brokers, title reps, loan officers, administrators and many other folks along the way. The average real estate transaction involves 86 people from start to finish. Our investments help create real jobs for people around Phoenix. We are always looking to keep our crews busy which means we need to keep buying properties.
- Buying US products. We spend tons of money on materials that are made right here in the USA – that creates jobs in our timber mills, factories, supply shops, distribution centers and more. The US economy depends on steady improvement, and that requires investment from folks like us.
- Increasing the value of Phoenix neighborhoods. When we improve a house, we’re helping to increase the value of the entire community. We often repair abandoned and neglected houses, turning them into beautiful homes for families. That activity strengthens Phoenix. This helps all home owners in the area by creating better comparable sales. This means more money when they decide to sell.
- Increasing the tax base. When a new buyer takes over one of our properties, they’ll pay a higher tax rate based on the new and improved value. Those taxes go to pay for our schools, fire, police, libraries, streets and other valuable pieces of infrastructure. Again, improving our neighborhoods.
Pretty cool stuff, right?
Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly “reality” shows that amp up the drama because the reality of what we do on a daily basis is actually pretty boring. I always laugh when people think that I put a bunch of sexy improvements to a house and shop at home depot all day. It couldn’t be more of the opposite. The majority of my day is spent talking with homeowners who are looking to sell their properties for cash and doing everything in my power to help them!
Another task I’m usually working on is coordinating with lots of people to make sure things are happening on time. We have to keep track of lots of moving parts. new issues that are arising and dealing with bad news as it arises.
Enough about my day to day, let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house buying scam.
How To Ensure You’re Working With A Reputable Local House Buyer
When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and honest. Make sure you visit their website and figure out how they were able to help others in your situation.
Ask open-ended questions like:
- How do you help your clients?
- What do you do for people?
- Can you tell me more about your services?
- What aspect of your business makes you the proudest?
- How would you describe your investment philosophy?
- How can I know that you’ll close on my house when you say you will?
Second, look for tell tale signs of tactics that those few shady operators tend to use.
- “Kitchen table closings” – If a property buyer tries to get you to sign the deed (ownership) of your house over to them at your house, rather than a professional place like a closing attorney or title company… be leery. Most reputable house buying services will perform the actual closing of the sale at a neutral 3rd party place… like a title company. This ensures everything is done right and on the up and up.
- Pressuring you into a fast closing – If a house buyer tries to pressure you into selling your house and says that you have to make the decision today, be leery. Most reputable house buying services will make you and offer and that offer will be on the table for at least 2-7 days (minimum) for you to make a decision. The reason reputable house buying services like ours at Integrity Acquisitions do place deadlines on our offers is because the market changes and values can change week to week depending on other sales in the area, also… we buy multiple houses a month and when we make you an offer we’re assuring you that the cash to purchase your house is ready and we’ll reserve that cash for several days so if you do want to sell your house, we can close on your schedule. If you feel the offer isn’t a fit for you, then we’ll assign those funds to help another seller with their home sale.
Most scammers are looking for a quick score, and not an in-depth interview. They don’t want to spend time being thorough and truly providing value.
Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.
True investors who run honest and ethical Phoenix house buying services, however, are building long-term businesses based on relationships and community development. Believe it or not a good home buying company might actually not be the one to buy your home! If your property is not a good fit they should be able to walk away and recommend another solution. You’ll know you’ve found a winner when one of these companies turns you down!
So when you’re looking at one of the “we buy houses in Phoenix companies“… never be afraid to ask questions!