Do Fast Cash Buying Home Companies Charge Commission?

One frequently asked question about cash home buying companies is whether they charge commission. The answer is no, cash buying companies don’t charge commission or fees of any kind. If you’re wondering how and why they can do that, it’s important to understand that their business model is radically different from the traditional home sales process.

Why Traditional Home Sales Charge Commission

If you’ve ever sold a home before, you know that the price you are offered for the house will never be what you ultimately receive. At closing, a huge commission will be deducted, usually as high as 5 to 6 percent of the total sales price. On top of that, you’ll pay other fees and costs.

Traditional home sales companies have to charge commission because they are just intermediaries in the sales process. Their job is to market your home and deal with any prospective buyers. They are paid for their time with the commission.

The Process of Selling to a Cash Buying Company

In contrast, when you sell your home to a cash buying company, there are no sales agents or marketing specialists involved. You are selling directly to the company. They don’t charge commission because they don’t have any salespeople or brokers to pay.

A cash home company also doesn’t have to deal with mortgage lenders or financial institutions. They are already funded, meaning they have the full amount of the money needed to pay for your home. 

How Cash Home Buying Companies Make Money

You might be wondering, then, how cash buying companies make a living. To understand that answer, you need to understand their business model. Rather than finding a buyer for your home, as traditional home sales brokers do, they are the buyer. 

Cash home buying companies are property investors. They buy homes for the purpose of reselling them for a profit. Often, they fix up, repair, and update the home first. Their purchase of your home is an investment for them.

The cash home buying industry offers homeowners an alternative way to sell their homes quickly and without going through the hassle of dealing with agents, brokers, inspectors, and others. And since there’s no commission to pay, and no other fees charged, it can save you money in the long run.

Sell your Phoenix area home quickly for cash. Click here to get started. 

No Comments

Sorry, the comment form is closed at this time.