The world of real estate consists of buyers and sellers each looking for the best deal. Typically though, you’d think of buyers as a young couple looking for their first home, or a growing family that needs more space, maybe a retired couple looking to downsize. However, some buyers out there aren’t individuals but rather a company that’s looking to purchase real estate. These companies tend to buy houses for a profit or keep the home, renovate it and then rent it out.
Selling a home can be tricky, so it’s a good idea to consider all your options depending on your needs and priorities. Besides that, your decision will also include who to sell your house to and what they can offer you like price, terms, and peace of mind.
Perhaps you’re running numbers and aren’t liking what you see as far as a conventional home sale goes. On average, a home in Minneapolis takes around 67 days to go under contract and another 30-60 days to close. Besides dealing with back-and-forth negotiations, and buyers’ preferences, several other factors can drag out a deal- or even cause it to fall apart.
If you’re interested in the idea that a house buying company could literally make you a cash offer within 24-hours and close within 7-days – but, naturally, are a little skeptical by their motive or if you’d be satisfied with the outcome. Below we’ll explain the process and provide a background on these We Buy Houses Minnesota companies to help you make an informed decision before selling your house.
How to Find People and Companies Who Pay Cash for Houses
To find people and companies who pay cash for houses in Minnesota, you’ll need to know who to look for. You shouldn’t call a number posted on a “We Buy Houses, Fast Cash” sign at a busy intersection.
Below are the various types of people and companies who will pay cash for houses.
- Cash Home Buyers
Cash home buyers are usually local investors that buy and sell properties for a profit or keep homes they purchase as rentals. Homebuyers can either be a single investor or a group of investors, some local to the area, others may be part of a franchise. They provide win-win solutions to help homeowners in challenging selling situations…. like foreclosure, owning a burdensome home, probate, or anything else. They also will purchase houses in as-is condition and require no major repairs. An example of cash home buyers in Minneapolis would be Mill City Home Buyers.
- House Flippers
These types of buyers solely purchase properties to remodel or renovate to add value and then resell for a profit. Usually, house flippers look for houses that require specific improvements that would increase what the home is worth. Some examples include: cosmetic updates, mechanical repairs, adding an addition, or changing the layout. For a house flipper to purchase a home the price will need to allow for a 15% to 20% profit margin, depending on the size of the project. Most major cities and mid-sized metro areas have several house-flipping companies.
iBuyers are technically businesses that use real estate market data and technology to make instant offers on houses, sight-unseen, after being contacted by the owner. iBuyers generally look for properties that are in fairly good condition compared to other properties selling in the market. But they typically are fee-based, meaning they make offers closer to the home’s actual market value, but will then charge a fee (starting at 6% but can get as high as 14%) to handle the purchase, marketing, and reselling of the property. After an offer is accepted, the iBuyer usually sends out a rep to inspect the property’s condition.
If any repairs are required to bring the property to market condition they usually request a credit at closing for the needed repairs. Currently, iBuyers operate primarily in larger metro areas, so they may not be an option in smaller cities in Minnesota or rural areas.
Related Article: Who Buys Houses in Minneapolis? [EVERYTHING YOU NEED TO KNOW!]
The Best Companies Who Pay Cash for Houses
We Buy Houses Companies, and other homebuyers allow you to sell your house for cash fast- sometimes in a week or even less. Below we’ve compiled a list of the five best companies that pay cash for houses in Minnesota for you to choose from.
- Mill City Home Buyers
Mill City Home Buyers is a real estate solutions company based out of Minneapolis. They’re a family-owned business that focuses on helping homeowners find solutions for problems whether going through a foreclosure, can’t sell their property, or just need to sell their house for other reasons. They can make you a no-obligation cash offer for your home within 24-hours, require no repairs, and you can close on your own schedule. They buy houses in several markets, including Bloomington, Eagan, Woodbury, St.Paul, and many more. Visit their website for more information about how it works or contact them today.
- Minnesota Cash Home Buyers
Minnesota Cash Home Buyers is a local home buying company that will buy your house in any condition and can make you a cash offer within 24-hours. They offer flexible closings and will purchase your home in as-is condition. Currently, they have a 4.4 out of 5-star rating on Google.
- FastPath Home Buyers
FastPath Home Buyers is a real estate solutions company based out of Burnsville, MN, and is a family-owned business. They can make you an offer for your home and close on your time frame. They advertise that they buy houses, update them and then resell each one.
- Express Homebuyers
Express Homebuyers is a national service that partners with local investors across the country to buy houses for cash. To work with Express Homebuyers you’ll submit your property information to receive an initial “as-is” offer. Then meet with a local investor to access your home and answer any questions. The local investor will then present a final cash offer that you can decide to agree to or not. Express Homebuyers has a 4.3 out of 5-star rating on Google.
- We Buy Houses
We Buy Houses connects homeowners looking to sell quickly to a local We Buy Houses homebuyer in your area. They advertise no fees, no repairs, no agents, and no obligations, but don’t have control over how much an investor offers. They aren’t in all metropolitan areas and client reviews are limited.
Related Article: Which Companies Buy Houses in Any Condition
The Cash House Selling Process in Minneapolis
Some of the smaller details and timelines can vary from company to company. However, most We Buy Houses companies in Minnesota share the same basic business model:
- An interested homeowner looking to sell directly contacts a cash home buying company.
- The home buyer assesses the home and gathers information about necessary repairs and potential resale value.
- Based on the amount of money and time it will require to invest into the property, the company will make an “as-is” cash offer.
- If the seller accepts the offer, the deal can close quickly because there is no need to negotiate, wait on lender approval, an appraisal, or home inspection.
The cash home selling process benefits sellers who don’t have the time or resources for a traditional home sale.
Timeline of a Cash Home Sale
As mentioned earlier, houses can spend 67 days on the market in MN before the seller accepts an offer. Then there is the closing process, which can take anywhere from 30 to 60 days if the buyer is applying for a home loan. That means it could take the typical seller up to 127 days to finalize the sale.
While in comparison, selling a house for cash in Minnesota to a home buyer can be completed in as little as seven days.
Tips for Selling a House for Cash in Minneapolis
Selling a house for cash is unlike a traditional home sale and a lot of the differences you’ll appreciate. As you decide if this option is right for you, here are some tips for selling a house for cash.
Tip #1 Know How Much Your House is Worth
No matter what, when you sell a house, it’s important to know how much your house is worth- especially if your home is in poor condition. Some people assume they can get a similar price to what their neighbor did down the street, without considering that the neighbors house is bigger, has an updated kitchen, or a four-seasons room built on. So to find out how much your home is truly worth, getting an appraisal may prove to be helpful. That way, you know how much your house is worth in its current condition.
Tip #2 Watch Out For Home Buying Scams
As you search for a home buying company in Minneapolis, you’ll likely come across several. Some are better than others and sadly, home buying scams are out there. So when you’re looking for a buyer, make sure you do your research. Read client reviews, look over their website, ask questions, and get things in writing. And if you’re ever unsure of anything, get legal advice before signing anything. Be advised to not work with anyone that requests money for a cash offer and don’t work with someone who insists on sending you money without first looking at your home.
Related Article: Home Buying Scams in Minneapolis – Here’s What to Look Out For!
If you prefer not to hire a realtor or sell your house on your own, selling to a cash home buyer is a great option. Being able to avoid costly repairs, expensive realtor commissions, months of uncertainty waiting for your house to sell, and the potential of the deal falling through- sounds pretty fantastic. If selling your house to a home buying company in Minnesota is the route you’d like to take, contact Mill City Home Buyers to get a free no-obligation cash offer today!