Who are they? Who do they target? Are there benefits?

Sounds easy enough. What’s the catch?

Say goodbye to any profits and probably the equity that you’ve built up in your home. The offer that cash buyers make is often suspiciously just enough to pay off your mortgage. You will likely only receive 50-80% of the market value.

80% of market value might seem like it’s worth it to avoid the hassle of going the conventional route, but the average is more like 65% of market value.

Another reason to be extremely careful with these types of companies: scams. Phony investors have all sorts of tactics and tricks to extort money from desperate sellers. You don’t want to lose money, or worse, your home, just in an effort to save time.

In short, if you are considering selling your house to a cash buyer, do your research first. Selling a home to get out from under it isn’t the only alternative you have. There are other, more profitable options.