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In some cases, selling your home to a cash-homebuying company — sometimes known as a “we buy houses” company — can make a lot of sense. These businesses typically purchase homes in any condition, making quick, all-cash offers. What’s more, they can close deals within just weeks, and helping homeowners avoid a lot of the hassle, expense and work required in a traditional sale.

However, if this sounds too good to be true, it’s with good reason. In exchange for a faster and easier deal when you work with one of these outfits, you’ll likely earn much less money than you would if you sold the usual way, with an agent.

If you’re weighing whether you should sell your home in the Keystone State to a cash-homebuyer, there are a few things to consider. Read on to learn about companies that buy houses in Pennsylvania to decide whether this type of sale is right for you.

Types of companies that buy houses for cash in Pennsylvania

Neither of the industry’s two biggest iBuyers, Offerpad and Opendoor, currently operate in Pennsylvania. However, the state offers numerous other companies that buy homes for cash, ranging from national chains to small, local businesses. Here are some examples:

National options

If it’s your first time selling to a cash homebuyer, it’s understandable if you want to work with a well-known national brand.

• We Buy Houses: This company operates in cities across Pennsylvania, including Philadelphia and Pittsburgh. If you’re interested in working with We Buy Houses, you’ll reach out and provide some basic information about your house. Then, the company will have a representative assess your house before extending a no-obligation cash offer within 48 hours. Typically, the closing process takes no more than a couple of weeks.
• HomeVestors: HomeVestors (you may hear it referred to as the “We Buy Ugly Houses” company) also has locations around Pennsylvania, including Allentown, Harrisburg and Scranton. Once you contact your local branch they will schedule a visit, after which you’ll receive a quick cash offer (in some cases, on the spot). If you accept, you can close in about three weeks.

Local options

Local homebuying outfits are plentiful — here are a few that operate in and around the Pennsylvania housing market:

• We Buy Houses in Pennsylvania: Based in Luzerne County, in the Wilkes Barre–Scranton area, this company serves markets across the state and advertises same-day offers.
• 717 Home Buyers: Originally, this business purchased homes in the 717 area code, which includes the state capital of Harrisburg. But now it buys properties all around Pennsylvania. It also extends cash offers within 24 hours.
• Signature Properties: This firm operates out of Philadelphia but buys homes across the tri-state area of Pennsylvania, New Jersey and Delaware.
  

How do ‘we buy houses’ companies work?

If you’re considering working with a “we buy houses” company in Pennsylvania, it’s important to understand what these businesses look for and how their process works.

Each company has different rules on the exact types of homes they’ll purchase, but they’ll typically buy most types of residential properties. Often, this includes not just single-family homes but also townhouses, duplexes and condos. However, they may not buy mobile or prefabricated homes. They usually purchase houses in as-is condition, meaning that they don’t care if the property is in rough shape. Even if your home needs significant repairs or upgrades, you won’t have to spend money making them — these companies renovate the properties they buy before they resell them. And there usually are no fees or closing costs involved either.

The process will be fairly similar from one company to the next. You’ll begin by requesting a quote, either through an online form or over the phone. At this point, you’ll need to supply some information about your property, including the address. They may request that you submit photos or videos as well, and they will likely send a representative to assess your home in-person. Shortly afterward — sometimes within a day or so, or sometimes on-the-spot, you’ll receive a cash offer. These are fix-and-flip operations that specialize in buying homes that aren’t market-ready, so don’t expect to be offered fair market value: Your offer won’t be as high as what you’d likely earn from a traditional sale. And the more work the home needs, the lower the offer is likely to be. You can take some time to consider the offer, and you’re not obligated to accept, but be aware that it probably has an expiration date. And keep in mind that cash homebuyers generally won’t negotiate on price.

If you accept the offer, the next step is to schedule a closing date. In many cases, you can complete the entire closing process in a few weeks or less. These companies move at a very fast pace, so be sure you review all of the paperwork carefully and have a clear understanding of the deal’s terms. Don’t sign a contract until you’re sure you understand and agree to the terms laid out.

Alternatives

Cash homebuyers are all about speed and convenience – but if those aren’t your priorities, consider these alternatives:

• Hire a real estate agent: Working with an agent on your home sale will certainlly take longer than selling to a “we buy houses” company: According to Redfin data, Pennsylvania homes currently spend around 40 days on the market before selling. However, an agent’s local expertise and marketing know-how will give you the best chance at earning the highest price possible for your home, so the trade-off may well be worth it.
• Sell it yourself: If you’d prefer to manage the entire process yourself, you can also take the for sale by owner (FSBO) route. With this option, you won’t have to pay a listing agent’s commission — typically between 2.5 and 3 percent of the home’s sale price. The median home price in Pennsylvania is $264,700, per Redfin, so if you sold for that amount, you’d save up to $7,941. (In some PA markets, home prices, and therefore commissions, will be a lot higher.) Bear in mind, though, that selling a home yourself involves a significant amount of work.
• Rent it out: If you don’t need the money from your sale right away, consider renting out your home instead. This can be lucrative — but being a landlord isn’t for everyone, and different markets can command vastly different rent amounts, so do your research first.

Next steps

Not sure if selling your Pennsylvania home to a “we buy houses” company is the right move? Consider your priorities. If you want to sell your house fast with minimal hassle, or if the property needs more work than you are willing or able to make, then it might be a very good choice. There’s no obligation to accept an all-cash offer, so you can try requesting and comparing offers from multiple companies to see who offers you the best deal. But if it’s more important to you to make much money as possible on the sale, a cash homebuyer won’t be the best fit. If that’s the case, hire a knowledgeable local real estate agent to help you turn a larger profit.

FAQs

• How can I sell my house fast in Pennsylvania?

  Working with a cash-homebuying company is likely to be the fastest way to go. Often, the entire deal can close in just a few weeks, or sometimes even less. By comparison, traditional sale listings in Pennsylvania usually spend more than a month on the market before selling, then you must wait for the buyer’s financing to be approved before you can close.

• Are ‘we buy houses’ companies legitimate businesses?

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  Yes, most companies that use phrases like “we buy houses” in Pennsylvania (or elsewhere) are legitimate real estate investment firms. Their business model involves buying properties below market value, fixing them up, then selling them for a profit. With that said, you should still do your research before agreeing to work with a particular company. At a minimum, read through customer reviews on reputable third-party sites (like Google and Trustpilot) and look up the company’s Better Business Bureau rating.