4 Top We Buy Houses for Cash Companies in Brooklyn

Popular We Buy Houses for Cash companies in Brooklyn

If the process of selling to a house-buying company in Brooklyn sounds good to you, it’s time to find a legitimate operation you can trust.

We’ve compiled some top companies that will pay cash for you or your parents’ townhouse or brownstone. By selling to one of these companies, you can sell your Brooklyn home in as little as a week or two.

Why sell your Brooklyn house for cash?

For Brooklyn homeowners looking to sell, teaming up with a Cash-For-Homes company offers some clear perks: fast sales, guaranteed offers, and incredible simplicity top the list.

In Brooklyn, it typically takes around 150 days to sell a home on the market using an agent. That includes an average of 103 days on the market plus the typical 47 days a buyer needs to close on a purchase loan.

Compare that to the typical seven to 10 days promised by many house-buying companies in Brooklyn, and it’s clear why these Cash-For-Homes groups are an attractive option, even though they don’t always offer top-dollar for the homes they purchase.

Here are some of the main reasons why people choose to sell their homes for cash:

• Job relocation: If you’re moving quickly for a new job opportunity, a cash sale can fast-track your relocation.
• Divorce: A cash sale can offer a clean break for both parties during the challenging times of a divorce.
• Inherited property: Simplify the process of selling an inherited home with a quick cash transaction.
• Downsizing: For those looking to move to a smaller home or a retirement community, selling for cash makes the process smoother by downsizing.
• Major repairs needed: If your home requires significant repairs, a cash sale can avoid the expense and hassle of fixing it.
• Avoiding open houses: Selling for cash eliminates the need for open houses, offering privacy and convenience.
• Facing foreclosure: A cash sale can provide a quick resolution for those facing foreclosure, helping to settle debts swiftly.
• Problematic tenants: For landlords wishing to sell a property with tenants, a cash offer provides an easy way out.
• Selling from out of state: Cash sales simplify the process for those selling from out of state, making it less daunting and more straightforward.

Pros and cons of house-buying companies in Brooklyn

Selling your Brooklyn home to a house-buying company presents unique advantages and challenges. Understanding these can help you navigate the decision-making process more effectively.

Pros:

• Fast closing: Transactions can close in as little as a week, providing sellers with quick access to cash for their next venture.
• No repairs needed: Companies buy homes as-is, saving you from the hassle and expense of making repairs.
• Simplicity: The sale process is straightforward, with fewer contingencies and no need for staging or showings.
• Avoid foreclosure: For those at risk of foreclosure, a quick cash sale offers a way out before accruing more debt.

Cons:

While the speed and ease of selling to a cash buyer are appealing, there are significant downsides. The most notable is receiving a price below market value for your property. Here’s a summary of the main drawbacks:

• Lower offers: Expect offers significantly below the potential market value, reflecting the company’s risk and repair costs.
• Limited negotiation: The take-it-or-leave-it approach leaves little room for price discussions.
• Risk of scams: Sellers must be vigilant as the industry has a history of scams, though reputable companies operate transparently.
• Loss of potential profit: There’s a trade-off between convenience and potential profit from a market sale, possibly leading to regrets about missed earnings.

Vet cash buyers and know your home’s worth

The level of integrity and service you experience from a We Buy Houses for Cash company can vary, even within an established house-buying group that strives to maintain high standards. This is because many Cash-For-Homes companies are franchises and often use independent investors or wholesaling outfits. Your experience depends on the character of the person or group making the offer.

Before committing to a cash offer, vet the company thoroughly. Check reviews, read testimonials, and research its presence and performance in the market. And, of course, read the buying agreement carefully before signing.

HomeLight suggests you consult with an experienced local agent to get a better idea of what your home might be worth if sold on the open market. Then, compare your cash offer. HomeLight can connect you with a top-performing agent in your market. You can also use HomeLight’s Home Value Estimator to get an initial ballpark estimate in less than two minutes.

Other options to sell your Brooklyn home quickly

Exploring alternatives for selling your Brooklyn home quickly? Consider these two options:

iBuyers: Instant buyers, or iBuyers, use automated valuation models (AVMs) to offer a mostly online, efficient home selling experience. Founded in the mid-2010s, iBuyers such as Opendoor and Offerpad provide all-cash offers close to market value for homes in good condition. The iBuyer process from offer to closing is swift, typically completing in days to a couple of weeks, though service fees of 5%-6% apply.

Listing with an agent: While not the first thought for those seeking fast sales, listing with a top real estate agent can lead to a quick market sale, particularly in seller-friendly markets. Agents can offer invaluable insights through a comparative market analysis (CMA), often free, to help set competitive prices and market the property effectively.

Partnering with a skilled agent can not only speed up the sale but also ensure you receive the best possible price for your property. If you’re interested in this route, HomeLight can connect you with top-performing agents in your area.

FAQs on Brooklyn house-buying companies

Are We Buy Houses for Cash companies legit or scams?

By and large, most We Buy Houses for Cash companies in Brooklyn are legitimate businesses. Their services and transaction fees may differ, but the business model has been around for decades. If you use an established group with a track record, you can be fairly confident that it’s legit.

That said, as with any financial transaction, it’s a good idea to be on the alert for scams. Always research companies before you sign a contract. Check customer reviews, look at their online presence, verify professional licenses, get a referral if possible, and vet the company on the Better Business Bureau website. Watch for anything that just doesn’t seem right.

How much will We Buy Houses for Cash companies in Brooklyn pay?

As described in our pros and cons list above, most Brooklyn We Buy Houses for Cash companies apply the 70% rule, meaning they’ll offer you about 70% of your home’s after-repair value, minus their estimated repair costs.

Here’s an example of what a simplified formula might look like:

(Your home’s ARV x .70) – repair costs

To see how this might work in a real-world scenario, let’s take a look at an example offer equation. Let’s say your Brooklyn townhouse could sell for $970,000 after repairs, but it’s going to need $30,000 of work to get there.

($970,000 x .70) – $30,000 = $649,000

In this example, a Brooklyn We Buy Houses company might offer you around $649,000 for your home.

However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more than We Buy Houses companies because iBuyers look for homes in better condition. An iBuyer might pay you 90% or more of market value while charging a fee for their services.

How much does selling a home to a We Buy Houses for Cash company in Brooklyn cost?

When you accept an offer from a Brooklyn We Buy Houses for Cash company, you will likely be coming to grips with a double-edged sword. On the one side, it shouldn’t cost you any additional money because these companies make an offer and handle almost everything once the offer is accepted. Conversely, you’ll likely get less money overall for your home.

Because We Buy Houses for Cash companies tend to focus on distressed homes, they typically have zero fees. Many will even cover your closing costs. In most cases, this means that the cash offer you receive will be the price you walk away with at the end of the deal. Of course, it’s always a good idea to ask the company if any hidden program fees might impact your bottom line.

How do you sell a house for cash in Brooklyn?

1. Research and vet the house-buying companies that serve your Brooklyn area. Our list above is a good place to start.
2. Submit offer requests to a few of the companies you like best.
3. Schedule any required on-site property visits.
4. Compare offers. Weigh the pros and cons and choose the best option for you.
5. Close the sale in a week to 30 days and get paid. (Some companies will let you choose a closing date up to 90 days after accepting the offer, which can be helpful when planning a move.)

We Buy Houses for Cash in Brooklyn vs. top Brooklyn agent

Another helpful exercise is to compare how a We Buy Houses for Cash company might stack up against working with a real estate agent. Let’s take a glance at how different aspects of the sale might look and compare possible proceeds.

Aspect of the sale	Sell to a We Buy Houses for Cash company in Brooklyn	Sell with a top Realtor in Brooklyn
Selling timeline	7 to 30 days	150 days average; 103 to attract an offer, 47 to close the loan
Home preparations	None	Deep clean, declutter, make necessary repairs, landscape, stage home
Showings	None	10 to 25 showings average
Inspections / repairs	None	May need to make additional repairs for the buyer or renegotiate the price
Appraisal	None	May need to lower your asking price if the appraisal comes in low
Title search	Cash-For-Homes companies often handle title issues	Must clear title before you can sell home
Financing contingency	None	Mortgaged buyers use a financing contingency that could hold up the deal if the buyer’s loan doesn’t clear
Agent commission	None	5.8% average
Closing costs	None	1% to 3% of the home sale price on top of agent commission

Example net proceeds

Below, we’ve put together one example of how net proceeds may differ between selling a home to a We Buy Houses for Cash company and an agent-assisted sale.

Let’s say your home in Brooklyn is currently worth about $970,000 and needs about $25,000 in repairs. Once the repairs are completed, the home might be worth around $995,000.

	Sell to a We Buy Houses for Cash company in Brooklyn	Sell with a top Realtor in Brooklyn
Estimated sale price	($995,000 x .70) – $25,000 = $671,500	$970,000
Market preparations	0	$9,700 (1% of sale price)
Agent commissions	0	$56,260 (5.8% of sale price)
Closing costs	0	$14,550 (1.5%)
Estimated take-home for seller	$671,500	$888,490

As this example illustrates, financially, it’s usually in your best interest to partner with an experienced real estate agent.

However, net proceeds are not the only consideration when selling a home. What’s best in your situation will depend on the condition of your property, what level of repairs are needed, and your selling objectives. It could be that selling on the open market will be challenging in your area, or the agent timeline might not fit your immediate needs.

Key takeaways

• Speed and convenience: Selling your Brooklyn home to a house-buying company can significantly speed up the process, allowing you to bypass traditional market preparations and showings.
• As-is sale: You can sell your property in its current condition, eliminating the need for repairs or renovations, which can be particularly beneficial if you’re short on time or funds.
• Below market value: Be prepared that offers from cash-for-homes companies are typically below the market value, reflecting the trade-off for speed and convenience.
• Alternative options: Remember, there are alternatives like iBuyers or listing with a real estate agent that can still facilitate a quick sale, potentially at a better price.
• Due diligence: It’s crucial to research and vet any house-buying company or investor to avoid scams and ensure you’re getting a fair deal.
• Know your home’s worth: Always be aware of your property’s estimated market value before you proceed with a cash-offer company.

At HomeLight, we’re happy to lend a guiding hand in navigating your real estate journey. Let us help you make an informed and confident decision, whether you’re looking for a no-obligation cash offer through a trusted platform like Simple Sale or seeking to consult with a top Brooklyn agent.

Header Image Source: (Avi Werde / Unsplash)