7 Questions to Ask Before Choosing a Cash Home-Buying Company

What To Ask Before Working With a Cash Home Buyer

        1. How Long Have You Been Buying Houses?

Jumping at a cash offer can be tempting if you’re rushing to sell. That said, do your research to know who you’re working with. Does the company you're considering have experience in your area? How will you view a home-buying company that started six months ago compared to one established for decades?

You’ll want to ensure the company is based in the Greater Knoxville area and has bought houses in the community. Home-buying companies with experience and a strong local presence will be transparent about their history. If they don’t have reviews, a website, or social media, that’s a huge red flag. 

This information matters because while most local home buyers are legitimate, some aren’t. If an offer sounds too good to be true, it probably is, and you should keep looking. 

        2. What Do Past Clients Have to Say?

If you have a friend or family member who worked with a cash home buyer, it’s always a good idea to ask for their input and whether they recommend the company they worked with. 

Ask the company if they can provide references from past clients who can speak to their experience. Bonus points if they have a lot of online reviews or a dedicated testimonials section on their website. 

Like online reviews, people tend to only talk about businesses if they had an exceptionally good or bad experience. If you know anyone who recently sold their home, ask who they worked with and how their experience was. 

If you can't find any online reviews or speak with anyone who has worked with a specific home-buying company, it's best to choose one with a positive track record. 

        3. How Does the Process Work?

Understanding the steps involved in selling your home to a cash buyer is crucial. This will give you an idea of what to expect and what to do. Ask the home-buying company to explain their process from start to finish, including how long everything takes and what you’ll need to prepare your home for sale. 

Additionally, ask them how they come up with the offer they make on your home. Do they consider the condition of the property or other factors? Knowing how they make their offers will help determine whether you’re getting a fair price for your home. 

        4. Do You Need to See My House Before Making an Offer?

Generally, you want this answer to be yes. A cash buyer can’t make you a fair offer for your home without seeing it first. If they don’t at least do a walkthrough of your home, they might send you a lowball offer or tack on extra fees once they inspect the property. 

Additionally, some national cash home-buying companies use flat rates for unfamiliar areas. So, even if your house is in an up-and-coming neighborhood, you may get the same offer as everyone else.

        5. Do I Need to Make Repairs? 

Even if a home-buying company doesn’t opt for a home inspection, they may still ask you to hire cleaners, make repairs, or remove unwanted items. Because of this, always be upfront about their expectations. If a cash buyer says they’ll purchase your house as-is, it should mean you won’t have to make any changes — regardless if the house needs a new roof or has years’ worth of water damage. 

        6. How Long Is Your Closing Period?

One of the benefits of accepting a cash offer on your home is the ease of sale. So, before you choose who to work with, ask about their closing process. For example, what paperwork do you have to prepare or sign? Is there any follow-up after? 

A reliable cash home-buying company should make things as easy as possible and work around your schedule. Generally, you should just have to sign a contract and pick up your check on closing day. 

Also, remember that most cash offers take around two weeks to close. While some closings can be expedited, most transactions require a title company to process, which takes time. Be careful with companies that promise an unrealistically fast closing period. 

        7. Can I Sell My House to You if I Live Out of State?

Are you trying to sell your house from out of state? Ask the home buyer if they can work with you from a distance. You should never go with a company that charges you because you live elsewhere. Instead, find someone willing (and able) to schedule an on-site visit and make you a fair cash offer. 

For instance, some cash buyers offer video walkthroughs, allowing them to see your home's condition without you having to be there in person.