You’ve seen the newspaper ads, the billboards, the television ads. The companies that blare, “We Buy Houses” and “Cash For Your Home”. How do these companies work, and are they legitimate? If you are selling your home, should you give them a call? Here’s what to expect from these types of companies.

Keep in mins that these companies or individuals are real estate investors, who are buying and selling property so they can make a profit, it’s their business. They do not want to move into your house to live there. Instead, they may buy it at the right price, fix it up if needed, and either resell the house or rent it to a tenant. If these investors buy your house for cash it will be at a significant discount from the market price, so they can profit from the transaction. Usually, an investor has a profit margin in mind when they make an offer. Unlike the typical home buyer, they are not buying this house based on emotion, they really won’t care about the beautiful curtains and the little touches that you may have added to the home. Mainly, they are looking at location, how much repair the home needs, and how quickly they can turn it around. Their offer to you will account for anything they think the property needs.

Regarding the price, expect to receive a fairly low offer. Real estate investors include such things as repair expenses, any holding costs, and also build in a profit margin for their bottom line. Don’t take a low offer personally, because it’s just business to them. If you’re going to talk to investors to try to sell your home, be sur to call more than one. See what kind of deal each of them will offer you, and don’t sign any paperwork until you’ve had at least a day to sleep on it, or better yet, run it past a lawyer. They may try to talk you out of that, but this is a big personal possession and you want to make sure you’re covered and not giving it away.