‘We buy houses’ companies in Phoenix

There’s more than one way to sell a home. The most common approach, of course, is listing your house for sale with the help of a real estate agent, hosting showings and maybe even investing in staging to help it look its best.

But what if you don’t have time for all those steps and just need to sell your house fast? One alternative to consider is a company that proclaims “We buy houses!” This type of homebuying company is proliferating around the country, including in Phoenix. Their business model involves making all-cash offers for homes — and in many cases, the entire deal can be closed in as little as one week.

If you need cash quickly or have to relocate on a short timeline, the speed offered by these types of companies can be a big benefit. But there are also drawbacks to consider. Cash homebuying companies typically offer less than market value for homes, and sometimes far less — so, even though they take it off your hands quickly, you may end up losing money on the deal.

Types of companies that buy houses for cash in Phoenix

Throughout the country, there are a few different types of companies that buy houses for cash. One of the most well-known national brands literally uses the name We Buy Houses and has locations in 31 states and the District of Columbia, including in Phoenix. In many cases, it can make an offer on a home in as little as 24 to 48 hours. Like many such companies, it also buys your home as-is — meaning you don’t have to bother making repairs. And closing typically takes place in as little as seven to 14 days.

HomeVestors is another national chain offering cash homebuying services in the Phoenix area. (You may also hear it referred to by its tagline, “We Buy Ugly Houses.”) The company has been in business since 1996 and also buys homes in as-is condition. A local representative will visit your home and make a cash offer on the spot; closing can happen in as little as three weeks.

Phoenix is also served by the national chain ASAP Cash Home Buyers, which has locations in all 50 states. ASAP buys all types of homes, including condominiums and townhouses, and it also promises on-the-spot offers for homes in as-is condition.

There are regional and local cash home buyers operating in Phoenix as well, which offer the same general approach as the national options. Some of the choices include:

• WeBuyHousesArizona: This company has been in business for more than 20 years and serves nearly the entire state. Like many other cash homebuyers, it makes an offer within about 24 hours, promises a quick closing and buys homes no matter what condition they’re in.
• The Trusted HomeBuyer: Serving Arizona, Michigan and Florida, the Trusted HomeBuyer promises a fair cash offer and no closing costs.
• AZHomebuyer: This small, local business has been operating for 15 years and makes same-day offers. It promises no closing costs and $30,000 earnest money deposits.

iBuyers are another option. But their business model is not exactly the same as “we buy houses” companies: While both types of companies will make a cash offer for your home and do so quickly, an iBuyer is generally an online-only operation. That means there may not be a local office to go visit if you prefer personalized service. iBuyers sometimes charge steep fees for their services, and often will not buy homes in poor condition. Two of the most well-known iBuyers are Opendoor and Offerpad, both of which operate in Phoenix.

How do ‘we buy houses’ companies work?

For the most part, these companies purchase houses in any condition, including those in significant need of repair. Cash homebuyers are known for making offers on homes “as-is.”

The offer you’ll receive, however, is likely to be less than you would make in a traditional, agent-assisted sale on the open market. While most cash home buyers promise a fair price, they still have to make a profit. You’re likely to make less money selling your home this way, although you’ll have the money in hand much faster.

While some steps vary from company to company, the cash homebuying process generally follows a similar progression:

• You contact the company, either by phone or online, and tell them about your property.
• A representative will visit your home, do a walk-through, and may even take some photos.
• Once the assessment is complete, you will receive a cash offer. Some provide offers on the spot, while others promise an offer within 24 to 48 hours.
• You decide to accept or reject the offer. There is typically no obligation, but negotiation is usually not possible.
• If you accept the offer, you’ll sign a contract — review it carefully! — and proceed to closing. Some companies allow you to choose a closing date at your convenience, but in many cases it happens very quickly, so be prepared to move fast.

Alternatives

The allure of getting cash for your home quickly from a “we buy houses” company can be tempting, but it may not be the right choice for everyone. If you have a more flexible timeline or are not in a cash crunch, you may make more money by taking another route to selling your home in Phoenix. Here are some other options to consider.

• Sell with a real estate agent: You’ll almost certainly earn more for your home selling the traditional way — with a real estate agent who helps you price the home competitively, based on local market comps and values. The median sale price for a home in Phoenix as of January 2023 was $404,490, according to Redfin data. This approach, however, will take far longer: Phoenix homes are spending about 70 days on the market before selling.
• For sale by owner: Selling your home without the assistance of a real estate agent, also known as FSBO or “for sale by owner,” is another option. This approach eliminates the cost of an agent’s commission, but you’ll have to do all the work entirely on your own, and you’re not likely to get as high a price as you would with the help of a professional.
• Renting: Becoming a landlord and renting your home out may be worth considering if you don’t need a lump sum of cash to buy another home. The upside of this approach is the ongoing stream of income a rental generates. But it may not be the best choice if you don’t want to deal with the responsibilities of managing a property.

Next steps

Deciding when and how to sell your home is a significant step, one that should be based on your unique needs and goals. Do you need the cash ASAP? Is your timeline flexible or do you need to pack up and move quickly? Is your home in serious need of repairs? The answers to these questions and more can help you determine your best sales option.

If you decide to proceed with a “we buy houses” company, be sure to shop around — there are many companies doing business in Phoenix, so you have plenty of options. Take the time to get more than one offer on your home, check the company’s reviews from past customers and read the FAQs on their websites. And before signing on the dotted line, read the sale contract very carefully.

FAQs

• Are “we buy houses” companies legitimate businesses?

  While it’s always important to do your homework, for the most part “we buy houses” companies are legit. You likely won’t get as much money as you would selling the traditional way, but you will get it faster and with less hassle. Some homebuying companies have Better Business Bureau accreditation and verified five-star reviews by users on Google.
  

• How much money will companies that buy houses for cash in Phoenix pay?

  These companies are for-profit ventures, meaning they need to make money on a transaction to stay in business. Most do this by performing needed repairs and then flipping the home. Cash homebuyers will likely offer about 70 to 75 percent of a home’s market value, deducting what they expect it will cost them to make the renovations and repairs.
  

• How much does it cost to sell a house to a company that buys homes for cash versus a traditional sale?

  Most “we buy houses” companies will not charge you a direct fee to sell your home. However, they may not cover all of the closing costs, so it’s important to read your sale contract carefully. In addition, most iBuyers do charge service fees, some of which can be hefty. Traditional sales, in contrast, involve real estate commissions and closing costs (though both are negotiable, at least to some extent).