You’ve likely seen the signs hanging on light poles saying, “We Buy Houses” all over Birmingham. There are many companies that buy houses in Birmingham using this tactic. The question is whether they are professional and can actually buy your house. Let’s take a look at how to recognize whether a company actually buys houses in Birmingham.
Do Companies That Buy Houses in Birmingham Use These Signs?
We mentioned that you see many signs saying, We Buy Houses, but is this professional or legal? The answer to both is no. If you call the number on these signs many times you will be calling a phone number that can’t be traced or is difficult to trace. These signs violate the ordinances and codes of the local municipality. Their workers are constantly removing the signs only to have new ones put up in their place. That’s why the phone numbers you are calling are difficult to impossible to trace. The people and companies hanging these signs face fines for each sign placed. That’s why they are hiding behind these phone numbers.
Sure, everyone needs leads to make money and stay in business but if someone is intentionally doing something they know will lead to a fine for breaking local ordinances, can you trust them with the livelihood of you and your family to buy your house? I was always taught honesty is the best policy. You were probably taught the same thing.
Are Companies Legitimate That Buy Houses?
There are many companies that buy houses that are legitimate businesses. Unfortunately, to find one of these companies you have to filter thru many different phone numbers and online searches to find a legitimate company. A company doesn’t exist that can buy every house. Once you are able to speak to someone about buying your house you will have to go thru many visits to inspect the house from potential buyers. Some will throw a number out on the phone without looking at the house in person. Ask yourself, This is thousands of dollars. Would I willy nilly tell someone I’ll give them thousands of dollars without at least looking at the house? None of us would, especially not a legitimate investment company.
Every company that buys houses is an investment company. That means we can’t pay full price because we have to make money to keep the doors open of the business. If we are spending thousands of dollars that means we are going to do our due diligence. The process is much the same as when you purchased the house you are trying to sell.
Due Diligence Process
When you purchased the house you likely had an appraisal and a home inspection completed before you closed and committed thousands of dollars for the next 30 years. The process for a home buying company is similar but shouldn’t take as long since most times a mortgage isn’t involved in the transaction.
When a legitimate company that buys houses initiates the process they will likely inspect the house prior to making an offer and writing a contract to buy the house. This is the same as when you purchased the house. The next steps typically depend on the company as we all have different ways of buying houses.
At Home Buyers Birmingham we will inspect the house and if interested, make an offer to buy your house. If you accept the offer we will write a contract to purchase. The same way you purchased the house will follow. The contract will include an inspection period so that we can get estimates on any needed renovations so that we know exactly what will be spent in total buying your house. There are many home owners that say their house doesn’t need repairs. That is unfortunately not true. While your house may be in great condition it may not be in the condition to rent or sell.
A common example is paint or an HVAC. Your house may have recently been painted but are the colors what everyone that is potentially renting or buying going to want? The other is an HVAC. While it may be running fine it may be an older unit that doesn’t have a lot of life left on it. That is a cost we have to consider since it will have to be replaced soon.
We can’t rent a house and have the heat or air go out. It will take days to replace the unit and that will leave our tenant without heat or air. If we are selling the house the potential buyer is going to be a home owner like yourself and probably can’t afford thousands of dollars unexpectedly. This is why we would have to replace the HVAC and consider the cost of a new one in our offer.
Once we have our estimate on any repairs needed we will either move forward with buying the house or inform you it is going to cost more than we expected. If the cost are more than expected we can do one of two things. We can either renegotiate the purchase price or cancel the contract. We don’t like to do either of these but we can’t spend $125,000 for a house worth $100,000. That doesn’t make sense to you when buying a house or us.
When you are looking for companies that buy houses in Birmingham be sure to work with a company that is professional. It’s important to trust the person and/or company buying your house. That ensures they are updating you on the process as it moves forward.
Home Buyers Birmingham has purchased hundreds of houses in Birmingham. We take great pride in working with home owners to help them sell their house to us. You likely won’t find this type of information on any other company site you visit. We aren’t hiding behind phone numbers nor hanging signs. In many cases we buy houses from previous owners that have referred our company to someone they know. We won’t pressure you to sell your house to us either. Our motto at Home Buyers Birmingham is…