Real Estate Tips & Resources

Have you driven by a "we buy houses" billboard or yard sign recently and wondered who is behind them? They’re often accompanied by the mention of “we pay cash now” and “for any condition home” and “call now!" They're catchy and get your attention. And are they a legitimate way to get cash for your house fast or are they a scam? The first thing to understand if you're looking to sell your home is that these "buy fast" offers are not the same as an all-cash offer that you may receive when you list your house. So, what’s the difference? The “we buy houses” companies are often run by investors and real estate moguls who want to flip houses. They have the leverage to pay in cash and turn their investments around quickly. Let's quickly walk through the difference between investors promising quick cash for ugly houses and an all-cash offer from a homebuyer. Understanding the “we buy houses” business model Also known as quick house sale companies, these buyers aren't buying houses to live in. So, are the “we buy houses fast” offers a scam? Not necessarily. But while a reputable quick house sale company may not be trying to scam you, they are certainly not going to offer you top dollar for your home. Sellers who call these companies usually receive an offer quickly, within 1-3 business days. While they do promise to pay cash, they pay below market value for homes. Their goal is to flip your home and sell it for profit. According to a CNBC report from December 2020, the gross profit for house flipping is over $73,000. This is money that could've ended up in the seller's pocket, instead. So, why would someone opt to sell to a company like this? It boils down to personal circumstances. But if you can avoid it, there are better options to sell your house for what it is worth. Understanding a “cash offer” from a homebuyer A cash offer for your house from a prospective homeowner is one of the most attractive offers you can get. Your agent will advise you that homeowners prefer all-cash offers because of the speed and certainty that the deal will close quickly. Accept.inc is an innovative lender making it possible for any buyer who qualifies for a mortgage to make a cash offer in Denver or Portland, Oregon -- an offer as good as cash, no strings attached, proof of funds in the bank. That means you're not just waiting around hoping your house attracts the attention of the small number of buyers who have enough liquid cash laying around to pay for a whole house out of pocket at current sky-high prices. Nor are you pressured to sell to a house flipper who will only offer a fraction of what you could get in a more competitive market. What does that mean for you, the seller? You can sell your house quickly, not subject to any financing or appraisal contingencies, at a sale price that makes everyone happy. Pros and cons of both types of buyers The real estate market in many cities across America was hot, hot, hot in 2021. Buying a house in a popular city, like Denver, Portland, D.C., Austin or Oakland, for example, required making an even more competitive offer than in previous years. In Colorado Springs, houses sold 2.8% above asking price in the month of June with an average sale price of $492k. Also according to the Denver Market Trends Report, the metro area housing market is similarly competitive with close-to-list prices, in the month of July, around 104%. For homeowners looking to sell, it continues to be a great time to be a seller. And as the seller, it’s important to have all the information you need to make a smart decision about what offers to entertain. Selling to the right buyer could easily equal many tens of thousands of extra dollars in your account at the end of the day. Plus, it can determine how smoothly the process goes from start to finish. So what's the catch? Let's compare. Quick house sale (“we buy houses”) companies: For people trying to sell their homes quickly due to a job change, a potential repossession, needing to sell an inherited home out of state, or other emergency life circumstances, quick house sale companies can seem attractive. Pros: No pressure to do repairs or make improvementsNo house staging, showings or real estate agent requiredFast sale and access to cash Cons: Selling house way below market valueHigh potential for getting scammed by a con artist preying on desperationHidden fees and contractual agreements Homebuyers with all-cash offers: Selling your house to a buyer who is actually interested in a primary residence is still the more traditional scenario -- but more often, these can also be cash buyers. Whether you're weighing your options in a multi-offer situation (also known as a bidding war) or you only have a single offer, here's what you want to know about an all-cash offer from a homebuyer. Pros: Fast closing time -- days, not weeksNo risk of buyer finances falling throughNo appraisal contingency Cons: None, really! As a seller, you can refuse or accept any offer. How to sell your house fast … the right way The key difference between (1) companies that promise to “Buy your house now!” in Denver and (2) homebuyers coming forward with cash offers boils down to who benefits from the transaction. With quick house sale companies, they’re the only ones benefiting. The seller is getting bottom dollar, and the company walks away with a massive profit margin. With all-cash offers from a homebuyer, everyone benefits. It's a win-win-win. The buyer gets all the advantage of having cash on-hand when entering the housing market to buy. And the seller is guaranteed a much-faster-than-typical closing process. And agents don't deal with the hassle of deals that don't close and houses that need to be relisted. Know the difference between “we buy houses for cash” and cash offers It’s important for Colorado sellers to know that who they’re selling to is legit. The differences between “we buy houses for cash” and a homebuyer with a cash-offer are significant. Learn more about the benefits of accepting an Accept.inc-backed offer.

We get it: selling a home takes the cake as one of the most difficult (and stressful) financial experiences we can face over the course of our lives. From having to navigate challenging contingencies to worrying if your sale will close quickly and seamlessly, the selling process can be pretty overwhelming...to put it lightly. Whether you’re anxious about the possibility of a long, drawn-out process or you’re worried about the costs associated with selling a home, you’re not alone. As you know, when a deal falls through, you have to re-list your home. And when you relist your home, prospective buyers often assume there’s something wrong with the home, which can make it take even longer to get a new offer and, ultimately, cash in your bank account. As a seller, there are three major benefits to accepting a cash offer on your house. There are a number of advantages to accepting a cash offer instead of working with the approximately 86% of buyers who pursue a traditional mortgage. And in a hot real estate market, an all-cash offer doesn’t necessarily mean having to accept an offer below-asking price or dealing solely with institutional buyers. It’s a common assumption that all-cash home purchases are a rarity. However, they account for a pretty healthy portion of property sales – representing 36% of home sales in 2020 alone, according to Realtor.com. From a speedier close to cost savings, here’s a look at the three biggest reasons to consider an all-cash offer on a house. Benefit #1: Cash Offers Close Faster Maybe you’re relocating for an employment opportunity. Or perhaps you’re expanding your family and upgrading to a larger home. Whatever the case may be, by accepting a cash offer on a house, you’ll speed up the process of getting your house sold. Sellers prefer cash offers because selling a home through a traditional mortgage lender is time-consuming, taking an average of 47 days to close (according to Ellie Mae). The culprit? Lenders require a lengthy underwriting process at the end of the sales process. With an all-cash offer, the average time to close is approximately 2 weeks. Between the initial pre-approval and the loan finalization, if a buyer’s financial picture changes, or they fail to satisfy certain requirements, the lender can decide to decline their loan. The result? Your deal will fall through and you’re left back at square one of the selling process.Benefit #2: Cash Offers Eliminate the Risk of Financing Falling Through Month over month, NAR’s Realtors® Confidence Index continues to list “issues related to obtaining financing” as the primary cause of delays or terminations of real estate contracts. From buyer financial troubles to third-party appraisals, several things can cause lender financing to be at risk. If the buyer is unable to secure a traditional mortgage at all — or for the amount they "pre-qualified" for — they won't be able to purchase your home. As a result, you'll either need to pursue the next offer in your pipeline or place the house back on the market. Best case scenario: it's a hot market and the whole process starts all over. Worst case scenario: the market softens and it takes longer AND you need to lower the listing price. But if you're presented with a cash offer, you don't have to anxiously chew down your fingernails, worrying that the deal could collapse at the 11th hour because of financing problems. Benefit #3: You Won’t Lose the Deal Over an Appraisal Contingency Another way a traditional mortgage lender can kill your sale is via an appraisal contingency. An appraisal contingency is a clause that states the contract can be terminated if the seller’s asking price isn’t consistent with the assessed market value of the house. An appraiser’s evaluation combines tax records, prices of comparable homes recently sold in the local area, a personal assessment of the property’s condition, amenities and features, location in the neighborhood and several other considerations. If your home doesn't appraise at the list price or higher, the lender can refuse to approve the buyer’s mortgage loan. Or, the lender may agree to finance the home, but the buyer would be responsible for fronting the difference. Oftentimes, buyers don’t have the financial means or are unwilling to cover the difference. If that's the case, the buyer can rescind their offer. When you receive an Accept.inc offer, however, you'll have confidence the house has already been offer-checked and the sale is approved for the amount of the offer. Enjoy the Benefits of a Cash Offer on Your House From neighborhood parties to engagements to a baby’s first steps, your home is not only a reflection of you, but it’s also where priceless memories are made. What it shouldn’t be: a source of stress and anxiety when it comes to the home selling process. We founded Accept.inc as a way to introduce a better kind of mortgage lending to the market – one that gives everyday homebuyers the power to buy a house with cash. As a seller, this translates into a streamlined process that solves many of the problems associated with the old way of getting mortgages. Helping you sell your home 3x faster than the national average and avoiding deals from crashing and burning is what we’re all about. Because having to relist a home is certainly not our definition of fun, and we’re guessing it’s not something you want to experience either. All you’re responsible for is accepting the strongest all-cash offer in real estate! To learn more about the benefits of partnering with Accept.inc, download our free Seller Information Packet today.