How Much Do House Buying Companies Pay and Are They Legitimate?

If the prospect of selling your home seems daunting and arduous, you may want to consider a house buying company, such as an iBuyer, real estate investor, or house flipper. However, if you’re like most sellers, you also want to get the highest return on your investment and approach the transaction with confidence in who you’re dealing with. Going with a house buying company is definitely not a one-size-fits-all approach, but could be a viable path for some situations.

Seasoned real estate agent Alyson Gulassa works with the North Carolina-based Ginger Vereen Peters brokerage team, which sells homes more than 57% quicker than the average Raleigh area agent. She advises sellers to keep house buying companies on their repertoire of options and shares insights about when to consider using one.

Although the difference in sale price between selling on the open market and selling to a house buying company can vary widely even from one neighborhood to the next, according to Gulassa, using one will likely mean leaving some money on the table. For this reason, she says selling to a house buying outfit makes more sense as an option for sellers whose primary focus isn’t maximizing their return on investment.

“It definitely depends on what a person’s motivation is for selling the property,” Gulassa explains. “The cases I see where it makes the most sense to target that type of iBuyer (instant buyer) or investor type buyer is when someone is in a situation where they need to move quickly and money is not their primary focus.”