We Buy Houses in San Antonio [Even in 2024]

Are you here because you are considering selling your house to one of the 'we buy houses' companies?

You're in the right place! We will take you through the ins and outs of selling your San Antonio house to a cash home buyer.

As a veteran in the San Antonio real estate market, I understand the mix of hope and hesitation that can come with considering a sale to a 'we buy houses' company.

It's a significant decision, and you deserve to navigate it armed with all the necessary information.

In this article, I aim to offer you a transparent look into the process of selling your house to a company like Danny Buys Houses.

Beyond the allure of a quick, cash sale, there are critical factors to consider ensuring your experience is not just swift, but also secure and respectful of your needs.

Selling your house for cash is not without its pitfalls. Scams do exist, and it's essential to approach these opportunities with a cautious eye.

Here, we'll explore how to distinguish genuine offers from misleading ones and ensure that your decision to sell is met with professionalism and integrity.

Are Those We Buy Houses People Legitimate?

Many times, people will question whether these companies are even legitimate. That's understandable given most people find out about them by the signs left on telephone poles.

That does seem rather shady.

This begs the question, "if you can buy houses cash, why can't you pay for legitimate signage?"

That's a valid question. Many of these companies are simply individuals starting out in real estate investing and house flipping. They might not have ever bought a house before.

This doesn't mean that all companies or people that post these signs are not capable of buying your house. It just means there is a good chance that the transaction won't be handled very professionally.

Opinions on Legitimacy Changing in 2024

In the changing real estate market of San Antonio, especially as we adjust to changing interest rates in 2024, the question of legitimacy among 'we buy houses' companies has become increasingly important.

As someone involved in this industry for more than 2 decades, I've observed firsthand the skepticism that arises, especially considering the unconventional advertising methods such as bandit signs on telephone poles.

However, this traditional approach to outreach, while seemingly outdated, is part of a broader strategy to connect with homeowners who might not be easily reached through digital means.

The real measure of legitimacy extends beyond signage to the core operations and ethics of the company. 'We Buy Houses' entities, including Danny Buys Houses, operate on a model designed to offer quick, cash-based solutions to sellers facing various challenges, from foreclosure to urgent relocations.

"The essence of our business model is not about capitalizing on others' misfortunes but providing a viable exit strategy for those in need."

This does mean we are not for everyone. That's ok.

In my years of experience, I've seen how critical it is to move beyond superficial judgments and assess a company's track record, transparency, and commitment to fair transactions.

Danny Buys Houses prides itself on being a beacon of professionalism in a market rife with misconceptions.

We've not only provided fair, market-based offers to countless San Antonio home sellers but also ensured that every transaction is handled with the utmost respect and integrity. This claim is supported by our longstanding presence in the community and positive testimonials from homeowners we've helped move on to the next chapter of their lives.

This can be shown by the experience had by a recent client, John Rohm.

From Skeptical To Testimonial: John R.'s Story

John Rohm called us to see how the process worked with us buying houses. He wanted to sell his house quickly, without making any repairs that were needed.

I could tell he was skeptical because kept asking for reassurances that the contract we were signing was not immediately signing over his house to us.

This is understandable as most people are not real estate professionals and contracts can be confusing. We informed him that he was more than welcome to have the contract reviewed by an attorney to help make sure he understand everything being agreed to.

He agreed and we moved on to getting the transaction done over the next couple weeks.

He left us this wonderful review once we closed:

“He was very helpful in every way. I would recommend him and his company to anyone selling their house. It has been a very pleasant experience.”

How to research the legitimacy of we buy houses companies

Here are 5 ways to determine whether a we buy houses company is legitimate in 2024.

1. How long have they been in business? 3 years or more is what you are looking for.
   
   According to LendingTree, 20.8% of private sector businesses in the U.S. fail within the first year. After five years, 48.4% have faltered. After 10 years, 65.1% of businesses have failed.
   
   If you find a house buyer that's been in business longer than years, you know you are working with the top 1/3 of we buy houses people.
   
2. How many houses have they bought in the last year? If they are able to come up with the cash to buy 5 or more houses over the last 12 months, they will be much more likely to come up with the cash for your house.
   
   According to Realtor.com's Investor Report for 2023, "Early in the pandemic-era boom, as housing demand skyrocketed and rents increased, larger investors edged out smaller investors, growing their share of investment purchases from 16.7% in July 2020 to a high of 31.8% in June 2022. Since then, the trend has shifted back towards smaller investors."
   
   This shows smaller investors may be your better option as long as they are regularly buying homes.
   
3. Are they a Better Business Bureau Accredited business? This one shows you they are a legitimate business that is willing to be listed publicly with the BBB.
   
   According to the Better Business Bureau, in their 2022 US Complaint Statistics Report, there were 869 complaints filed against real estate investing companies. The BBB is a great place to vet a potential house buying company.
   
4. Do they have a website and reviews? If the people they have worked with are happy, chances are you will be happy too.
   
   Luisa Zhou has compiled 2023 statistics on how online reviews affect consumers decisions.
   
   She says: 97% read reviews for local businesses and 94% say reviews have made them avoid a business.
   
   People take these reviews very seriously and are a great way to find the house buying companies you can trust working with.
   
5. Do you like them? Seriously. If they come across as shady or like used car salesmen, you might want to look for another option. Trust your gut.

We Buy Houses Scams To Watch Out For

We buy houses scams are nothing new.

The big one to watch out for is when someone asks you to sign documents transferring the deed to the house.

From my experience, I've encountered stories of numerous tactics that less scrupulous companies might use to exploit sellers. The most alarming involves pressuring sellers into transferring the deed without a proper closing process. It's a red flag I always caution against.

To safeguard yourself, here's a more comprehensive checklist for a smooth and secure transaction:

1. Documentation: The only legal document you should sign when accepting a cash offer is the 'One To Four Family Residential Resale Contract', a standard in Texas real estate transactions. This contract outlines every detail of the agreement, ensuring transparency and protection for both parties.
   
   You can get the contract by visiting TREC.
   
2. Verification: Always verify the buyer's credibility. Ask for proof of funds and confirm they have a history of closing deals in San Antonio.
   
   A legitimate buyer should provide this without hesitation.
   
3. Title Company Involvement: Ensure that a reputable title company is involved to handle the closing.
   
   The closing is where the transaction will be completed. This is where the title company will have the legal documents prepared and signed by both parties.
   
   This is your best defense against potential fraud, as the title company will manage the legal documents, escrow, and ensure that all financial obligations are met before the property changes hands.
   
4. Consult with Real Estate Professionals: If you're ever in doubt, consulting with a real estate attorney or a trusted advisor can provide clarity and peace of mind. They can review the terms of any agreement and advise on the best course of action.
   
5. Trust Your Instincts: If an offer seems too good to be true, or if the buyer is rushing you to make a decision, take a step back. A reputable company will respect your need for time to consider your options.

In addition to these signs the cash buyer could be a scammer, be sure to check out Trulia's 9 Ways Your Cash Buyer Is a Scammer.

One nugget from their article is:
And Brad Chandler adds this advice: “Require a large, nonrefundable deposit, 5% to 10% of the purchase price.” And never conduct further business with someone, particularly a stranger, until you have written evidence that the check cleared.

We Buy Houses Reviews

One of the best ways to know you are working with a solid house buying company is to check their we buy houses reviews.

There should be many reviews on their home page and other pages of their website. Another place to see reviews for a company are on Facebook.

Here is what we buy houses reviews on Facebook look like:

The internet has changed the way we do all do business.

Think about it, when you want to know who to work with you probably Google them. No longer do we open up the yellow pages (do those even exist anymore???).

This allows us to do our own independent research on companies before we contact them.

How Cash Offers Are Calculated

Many homeowners cannot imagine why someone would buy their house for cash, especially if it needs repairs.

The reason is 'we buy houses' companies are buying as an investment. As such, they need to make a profit.

This leads to the inevitable question:

How is what is offered calculated?

Most house buying companies decide what to offer based on a simple formula:

MAO = (ARV x 70%) - Repairs

Let's go over what each of these variables are:

1. MAO: Maximum Allowable Offer - this will be the most they will pay for the house in its current condition.
2. ARV: After Repaired Value - this is what the house should sell for once fixed/remodeled/updated.
3. Repairs - the cost to make those repairs/updates/upgrade

As an example, let's say your house will sell for $253,000 (the San Antonio median home price as of February 2024 according to Zillow).

That will be the ARV once the house is fixed up. Let's say the house will need $50,000 in repairs to remodel the kitchen and 2 bathrooms, paint the interior and exterior, replace the HVAC system, and do some landscaping.

With these numbers we can determine what the most a typical house buyer will pay for house:

Max Offer = ($253,000 x .7) - $50,000.

Max Offer = $127,100

How 'We Buy Houses' Works

The process for selling to a we buy houses company is simple. Here are the most common steps:

1. House Details - Contact the company and give them information about the house you want to sell. This usually involves just giving the address and confirming the number of bedrooms and bathrooms and what kind of repairs are needed at the house (that you are aware of).
2. Appointment - An appointment is made for the company to view the house and determine what the total cost of repairs and updating will be.
3. Cash Offer - The company will plug the numbers into their calculation and make you a cash offer.
4. Close - If you agree to sell, you will sign a contract and they will take the contract to a title company to prepare for closing. Once all the paperwork is finalized, closing will happen and you will get paid (usually in the form of a wire to your bank account).

Downsides of We Buy Houses

There are some perceived downsides to selling your house fast to a 'we buy houses' company.

1. You likely will not get full market value for you house. This matters when your house does not need any repairs as you will be leaving money on the table by selling to a cash home buyer.
2. Real estate investors are not required to be licensed so you will need to do your own research to determine the legitimacy of the company you will be working with.

We Buy Houses Fast in San Antonio

Danny Buys Houses is a local, legitimate house buying company. We have been in the business of buying houses since 2003.

We've got dozens of reviews from customers over the years and a track record of closing every single transaction we promised to close.

We do pay cash for houses so that you can:

• sell your house as-is (skip all the repairs and clean up!)
• close within 5 days
• avoid fees and agent commissions (we charge no fees)
• work with a local San Antonio company that understands the market

We will make an offer to buy your house no matter the condition or location. We've seen all possible situations and are comfortable helping you through whatever you are facing.

Sell Now?

According to Forbes, regarding the real estate market in 2023, "This is the third consecutive month of year-over-year national home price declines after a 131-month streak of record increases."

We Buy Houses Texas

Do we buy houses in other areas of Texas besides San Antonio? Yes, we do buy houses all over Texas.

If we do not service a particular part of Texas we likely know a legitimate we buy houses company in or near there that we can recommend.

How Can I Sell My House Now?

Great question!

You can start by checking out our website to see how the process works and read reviews from happy customers.

If you feel like we are a fit for you, when you are ready to receive a cash offer, simply fill out the form on this page or give us a call!

Conclusion

There are legitimate we buy houses companies in San Antonio in 2024. You just need to know what to look for.

We hope the tips in this article will help you to make an informed decision on who to buy your house fast in San Antonio, TX.