Cash homebuyers, often referred to as “we buy houses” companies for their ubiquitous ads, are known for making quick, all-cash offers and closing deals in just weeks, or even days. That can be a major plus for homeowners who need to relocate in a hurry or need the cash from their sale ASAP. There’s a big drawback, though: These offers are usually lower than what you’d earn from selling your home the traditional way.
If you’re thinking of selling a Utah home and need to sell it fast, here’s what to know about companies that buy houses in Utah, and how they work.
Types of companies that buy houses for cash in Utah
From local operations to national chains, there are several types of cash homebuying companies in Utah. Here are some examples of each.
National options
Two of the biggest national homebuying brand names operate in Utah. HomeVestors — also known as the “we buy ugly houses” company — buys properties in Salt Lake City and the Southern Utah area. And We Buy Houses has offices across the state, including in Salt Lake City, Provo, Logan and Saint George.
Besides sharing similar names, the companies operate in a similar manner. Both make fast, all-cash offers for homes in nearly any condition, and both can also close a deal within just a few weeks, or sooner. That’s considerably faster than a market sale: Homes in Utah spent a median of 35 days on the market before going into contract in May, according to Redfin data. After that, there’s usually a waiting period of a few more weeks before the deal can actually close.
Local options
If you’d rather sell to a small, local business, there are plenty of those to consider too. They include:
- We Buy Salt Lake City Houses: Run by a pair of brothers, this Millcreek-based business buys homes in any condition and covers all closing costs.
- Utah House Buyers: Headquartered in Salt Lake City, this company extends all-cash offers in as little as 24 hours and lets you pick your closing date.
- Gary Buys Houses: This firm, also based in SLC, buys all types of homes, including condos and apartments, and offers a cash deposit as soon as you go into contract.
iBuyers
The online homebuying firms known as iBuyers also pay in cash and move quickly, but they’re more selective about the types of properties they’ll buy and usually avoid homes that need extensive repairs. They also tend to charge service fees, which in some cases can be steep. One of the industry’s main players, Opendoor, buys homes in the Salt Lake City market.
How do ‘we buy houses’ companies work?
Each company is slightly different, but overall, most of these firms work in a similar fashion. They purchase homes, fix them up and put them back on the market to earn a profit, either as a resale or as a rental. Because they plan on renovating anyway, they buy in as-is condition, and because they pay in cash, with no waiting around for financing or lenders, they can move with remarkable speed. The entire transaction often takes just a couple weeks, or even less. These companies usually don’t charge any fees and take care of all closing costs as well.
However, this quick and convenient process comes at a cost: Cash homebuyers usually don’t offer as much money as you could get on the open market in a traditional sale. They need to make a profit on each transaction, after all. So this is an option for sellers who value speed over all else — if you want to get the highest price possible for your home, it’s not the best option out there.
Here’s a step-by-step breakdown of how it typically works:
- You reach out online or over the phone with some basic details about the home.
- The company will usually send a representative to evaluate the home’s condition in person.
- After the in-person visit, you’ll receive a no-obligation, all-cash offer (sometimes on the spot, but usually within 24 or 48 hours). Cash homebuyers tend to operate on slim margins, which means there’s not usually room to negotiate on price.
- If you accept, you’re ready to schedule the closing date. This process can happen very quickly, but don’t let yourself feel rushed. Read all paperwork thoroughly, and don’t sign anything you don’t fully understand.
Alternatives
Working with a “we buy houses” company is one way to sell your house in Utah, but it’s not the only way. Here are some other options to consider:
- Hire a Realtor: A traditional, agent-assisted sale will take longer than selling to a cash-homebuying company. But it may be worth the wait, since working with a real estate agent is the best way to earn top dollar on your sale.
- Sell it yourself: You can also consider a “for sale by owner” or FSBO transaction, in which you act as your own agent. FSBO sellers are responsible for everything that an agent typically does, including pricing, marketing, negotiating and managing the closing process. It’s a significant amount of work, but on the plus side, you won’t have to pay a listing agent’s commission fee.
- Rent it out: If you don’t need the cash from a sale right now, you might consider renting out your home instead of selling it. According to Zillow Rental Manager, the median monthly rent for a house in the Beehive State is $2,400 — a nice sum of steady income.
Next steps
In some situations, selling to a “we buy houses” company in Utah can make sense. Maybe you’re in a rush to relocate for a new job, or perhaps your home needs a lot of work and you just don’t have the time or money to fix it up. Either way, a cash homebuyer can take your home off your hands quickly and with minimal hassle — just don’t expect to earn top dollar. If you’re unsure, contact a few companies to see what they’re willing to offer. There’s no obligation to accept any offer you receive.
If maximizing profits is your main priority, though, your next step should be to find an experienced real estate agent in your area. The selling process may take longer, but it’ll likely earn you more money in the end.
FAQs
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Yes. You don’t need a Realtor to sell a house in Utah, or any state, although hiring one can make selling your home much easier (and potentially more profitable). Sale routes that let you avoid hiring a Realtor include selling it yourself in a “for sale by owner” transaction and selling directly to a company that buys houses.
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Generally speaking, yes. Cash homebuyers are simply real estate investment firms whose business model is to fix and flip: They buy homes, renovate them and resell them for a profit. Still, it’s important to do your research before agreeing to work with one. Read through online reviews, look up the company’s Better Business Bureau rating and double-check the fine print on any contracts or paperwork before you sign anything.
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