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The most common route to selling a home involves hiring a professional agent, hosting showings and waiting for offers from prospective buyers. About 86 percent of buyers use the services of a Realtor, according to data from the National Association of Realtors. But there are other ways to sell a home as well, including cash-homebuying companies.
Companies that declare “We buy houses!” are known for expediting the home sale process. This includes making all-cash offers within a few days or even hours of seeing your home. Many buy homes in nearly any condition, meaning you don’t need to sink money into repairs or upgrades, and they can also close the deal remarkably quickly — in a few weeks, or in some cases just a few days.
If you’re looking to sell a home fast or need the money ASAP, “we buy houses” companies can be very appealing. But all that speed and convenience comes at a cost: Homebuying companies are in business to make a profit, and typically that means they’ll offer you a lower price than you might get selling the traditional way. Read on to learn more about companies that buy houses in Colorado, and the pros and cons of this approach to selling a home.
Types of companies that buy houses for cash in Colorado
In most states across the country, there are large, national and small, local “we buy houses” companies to choose from. Colorado is no exception — here are some of the state’s options to consider:
- HomeVestors: This company, which also goes by “We Buy Ugly Houses,” has four Colorado locations — Grand Junction, Colorado Springs, Denver and Fort Collins. It also serves many of the towns surrounding those four hubs. The company makes quick cash offers for homes, no matter the condition, and promises to close within three weeks.
- We Buy Houses: The literally-named We Buy Houses company has a long list of Colorado locations, including Denver, Fort Collins, Colorado Springs and many places in between. Once you reach out, a representative will visit your home and make a no-obligation cash offer in 24 to 48 hours. No repairs are needed and closing can take place in as little as 14 days.
- Cash for Houses Colorado: This family-owned, Littleton-based company buys homes in the Denver metro area in nearly any condition. You’ll receive an offer within 24 hours of contacting the company, and the closing can take place on your timeline.
- Summit All Cash Buyers: In business since 2014, this operation makes same-day offers on homes as-is, even if the foreclosure process has begun. The company purchases homes in and around the Colorado Springs area.
- The Buy-Out Company: Like the other local cash homebuyers in Colorado, this firm based in Centennial offers a very quick process. They make cash offers on Denver-area homes, regardless of condition, within 24 hours. They also let you choose your own closing date. The company has purchased nearly 1,900 homes in the state since 2007.
Yet another option for fast-tracking the home sale process in Colorado is iBuyers. These online-only companies operate in a similar way, but they typically do not buy homes as-is, and they might charge potentially hefty service fees. Two of the best known iBuyers, Opendoor and Offerpad, operate in Denver and Colorado Springs; Opendoor also buys homes in Northern Colorado, while Offerpad also buys in Fort Collins.
How do ‘we buy houses’ companies work?
While some steps of the process may vary slightly from one company to the next, most “we buy houses” companies follow a similar approach. They will typically buy homes in nearly any condition, which they then fix up and either resell for a profit or rent out. You’re not required to make any repairs or put any money into preparing it for the market, which can be a relief if you want to cut costs and sell quickly. However, if your home is in poor condition, the price you’re offered is likely to reflect that reality, as it means they’ll have to spend more money to fix it up before they can resell.
The first step in the process is to reach out to the company. Some will make an offer based on online information and uploaded photos, some will schedule a visit to your home so that its value can be assessed in person.
Offers are made quickly, sometimes during the site visit itself but more often within 24 to 48 hours. You’re under no obligation to accept the offer, but “we buy houses” companies typically do not engage in price negotiations. The speed may make you feel rushed, but do take the time to read all the paperwork carefully and make sure you understand all the details of the deal.
If you decide to accept the offer, the next step is scheduling a closing date. Because there is no financing involved, “we buy houses” companies are able to move to closing very quickly, often in just a week or two. In addition, many handle all the paperwork associated with closing and cover closing costs as well.
The idea of selling your home quickly and without hassle can certainly seem attractive. But if a “we buy houses” company isn’t right for you, consider these alternatives:
- Sell with a Realtor: Yes, it will take longer to sell a home the traditional way with a real estate agent: Colorado homes spend a median of 35 days on the market before selling, according to October 2023 Redfin data. (It’s much faster in Denver, with a median of 19 days.) But if you have the extra time to spare, you’ll likely net more profit selling your home this way.
- Sell by owner: Selling the home on your own, often referred to as for sale by owner or FSBO, is another route to consider. You can save money on a listing agent’s commission this way — which can be considerable, given Colorado’s high median home price of $624,000, per Redfin. A typical 3 percent commission on that comes to $18,720. But be prepared, because this approach means doing all of the work yourself, from researching list prices to hosting showings to negotiating the terms of the contract.
- Rent it out instead: If you don’t need a lump sum of money right away, renting your home is another option to think about. This can bring in a steady source of monthly income: The typical rent for a Colorado house is $2,795, according to Zillow Rental Manager. But remember, you’ll also need to be prepared to play the role of landlord.
Your home is likely your biggest asset, so it’s important to do your due diligence and understand how much you could make selling with a traditional Realtor versus a “we buy houses” company. Some questions to consider include how fast you need to sell and how much money you need to net from the transaction. If time is more important than profit, a “we buy houses” company could make more sense. However, if you decide that pocketing the most money possible is your goal, then it will likely make more sense to work with a local real estate agent.
Yes, most “we buy houses” companies are legit real estate businesses. But you should still do your homework and research a company before signing a sale contract. Read online reviews and check with the Better Business Bureau, too. If you decide to proceed, be sure to review the terms and conditions of your contract carefully before signing.
Cash homebuying companies are in business to make a profit. That means you will almost certainly get less than market value for your home if you sell to them. However, in exchange for a smaller sale price, you get the convenience of a speedy and hassle-free sale.