The Meaning Behind Shady' We Buy Houses' Signages Revealed

We buy houses. Cash for homes. Fast cash, quick close. These are just some of the many shady signages you have probably seen around the neighborhood, sticking out of the ground or posted on overlooking highways. Some of these ads were printed professionally, while others are only handwritten, but it only sends one message, they want your house outright.

You're probably wondering who is putting up the aggressive signages? Do these straightforward promotions even lead to legitimate business transactions? Will they buy your property in cold cash?

Well, you are not alone, and your questions are the same as what other people have in mind. Some of them have probably thought about falling victim to a scam, so they disregard these catchy ads and go on with their day. But today, we will be answering all those questions so you can finally put an end to that curiosity.

(Photo : Photo by Joe Raedle/Getty Images)

Who are the people behind the signs?

The aggressive "we buy houses" signages came from real estate groups and real estate investors looking for properties across the country. More often than not, these groups pay 10 percent lower than the market value before flipping it like a "buy and sell" model.

Most of these groups renovate the properties they acquire before putting them back on the market for sale. Some hold on to the unit and wait for the values to go up before selling it in a more expensive deal, while others turn it into a rental property.

Do they pay in cash? Yes, most of these groups pay in cold cash to simplify the sale process and maximize profit potential in the future.

(Photo : Reuters)
All-cash home sales in the U.S. declined in the second quarter of 2014 to reach its lowest level in three years as big players failed to find dream properties in the country, according to RealtyTrac’s latest property report.

Does it lead to legitimate business?

While some fall victim to swindlers and scams, most of the time, these "we buy houses" signs can lead to authorized transactions with real people.

According to RE/MAX chief customer officer Nick Bailey, regardless of the condition of the property. These real estate groups offer cash in exchange for the house they want to sell immediately.

Bailey explained that this type of transaction where investors try to buy a house below the market value and eventually sell it at a higher price is getting more attention "because it's easier to buy and flip when prices are going up."

Since the home prices are rising and with the current situation brought by the COVID-19 pandemic, more homeowners are easily tempted to sell their properties outright. Some of them are not aware of how much their homes are worth or how some repairs could increase their house's value, leading to an information gap.

(Photo : Cash Offer for House: How to Work with Cash Home Buyers)

How to spot a "we buy houses" scam?

Just like any other business transaction, you have to do your homework and research about the investor. Check if they belong to a legitimate real estate group by checking their website, track their phone numbers, and double-check all necessary information.

University of California Los Angeles (UCLA) real estate professor Eric Sussman said: "Information and education are power, as far as I'm concerned. These buyers are obviously in the money-making business. As long as you're OK with that and aware of their strategy, well, sell."