We Buy Houses Companies vs Traditional Sale: What Sacramento Homeowners Should Know

You have seen the signs on telephone poles, the TV commercials, and the online ads: "We Buy Houses!" "Cash for Your Home!" "Sell Your House Fast!"

But what do these companies actually do? Are they legitimate? And how do they compare to selling your home the traditional way?

This guide breaks down everything Sacramento homeowners need to know about "We Buy Houses" companies and helps you decide if this option is right for your situation.

What Are "We Buy Houses" Companies?

"We Buy Houses" companies are real estate investors who purchase homes directly from homeowners, typically for cash. They go by many names:

• Cash home buyers
• Home buying companies
• Real estate investors
• iBuyers (technology-driven versions like Opendoor)
• House flippers

Their business model: Buy homes at a discount, renovate if needed, and either resell at market value or rent them out.

How the Process Works

Step 1: Initial Contact

You call, fill out an online form, or respond to marketing. You provide basic property information.

Step 2: Property Evaluation

The company researches your home's value using public records, comparable sales, and market data. Some request a phone interview; others schedule an in-person walkthrough immediately.

Step 3: Cash Offer

Within 24-72 hours, you receive a written cash offer. This is typically 70-85% of the home's after-repair market value, depending on condition.

Step 4: Decision Time

You can accept, negotiate, or decline. Reputable companies give you time to think - no pressure.

Step 5: Contract and Title Work

If you accept, you sign a purchase agreement. The buyer's title company handles all paperwork.

Step 6: Closing

Close in as little as 7-14 days (or longer if you need time to move). Funds are wired or a check is issued at closing.

The Pros of Selling to a Cash Buyer

1. Speed

Traditional sales take 3-5 months. Cash sales close in 1-3 weeks.

2. Certainty

No financing contingencies. No appraisal issues. No buyer backing out because they could not get a loan.

3. Sell As-Is

No repairs, no cleaning, no staging. Leave unwanted items behind.

4. No Commissions

Save 5-6% in realtor commissions.

5. No Closing Costs

Most cash buyers pay all closing costs.

6. Privacy

No public listing, no showings, no strangers walking through your home.

7. Flexibility

Many buyers let you choose your closing date or rent back temporarily.

The Cons of Selling to a Cash Buyer

1. Lower Sale Price

Expect 15-30% below full market value. This is the trade-off for speed and convenience.

2. Industry Reputation

The "We Buy Houses" industry has earned a mixed reputation due to some bad actors. Due diligence is essential.

3. Less Competition

With a traditional listing, multiple buyers can bid up your price. With a cash buyer, you have one offer.

4. Potential for Scams

Some companies use high-pressure tactics, bait-and-switch offers, or hidden fees.

Red Flags to Watch For

Not all cash buyers operate ethically. Protect yourself by watching for these warning signs:

1. Pressure Tactics

Red Flag: "This offer expires today" or "Sign now before I give this to another seller."

Reality: Legitimate companies give you time to decide. Pressure is a manipulation tactic.

2. Upfront Fees

Red Flag: "We need a $500 processing fee before we can make an offer."

Reality: Real cash buyers never charge sellers fees. Walk away immediately.

3. No Proof of Funds

Red Flag: The company cannot show they actually have the cash to buy your home.

Reality: Ask for a proof of funds letter from their bank. Legitimate buyers provide this readily.

4. Vague or Changing Offers

Red Flag: The initial offer is high, but it drops significantly after the walkthrough.

Reality: This "bait and switch" tactic is common. Get everything in writing upfront.

5. No Physical Address or Online Presence

Red Flag: You cannot find a real office address, reviews, or business history.

Reality: Legitimate companies have verifiable addresses, BBB profiles, and online reviews.

6. Wholesalers Posing as Buyers

Red Flag: The contract has an "assignment clause" allowing them to sell the contract to someone else.

Reality: Wholesalers do not actually buy your home - they sell your contract to another investor and take a fee. This adds complexity and uncertainty.

Cash Buyer vs Traditional Sale: Side-by-Side

Factor	Cash Buyer	Traditional Sale
Timeline	7-21 days	3-5 months
Sale Price	70-85% of value	~98% of list price
Realtor Commission	$0	5-6% ($25,000+)
Closing Costs	$0 (buyer pays)	1-2% ($5,000-10,000)
Repairs Required	None	Often $5,000-20,000+
Showings	1 walkthrough	Dozens
Certainty	99%+ close rate	80-85% close rate
Contingencies	None typically	Inspection, financing, appraisal
Stress Level	Low	High

When a Cash Buyer Makes Sense

Consider a cash buyer if:

• You need to sell fast - job relocation, divorce, financial hardship
• Your home needs major repairs - foundation, roof, mold, fire damage
• You inherited a property - especially if you live out of state
• You are facing foreclosure - time is critical
• You are a tired landlord - done dealing with tenants and maintenance
• You cannot afford to carry the home - behind on payments, taxes, or HOA fees
• You want privacy - avoid public listings and constant showings
• The home has complications - title issues, liens, unpermitted work

When a Traditional Sale Makes Sense

Consider listing with a realtor if:

• Your home is move-in ready - minimal repairs needed
• You have time - 4-6 months flexibility
• The market strongly favors sellers - multiple offers common
• You want maximum price - and are willing to invest upfront
• You can handle the process - showings, negotiations, uncertainty

Why Community Renaissance is Different

At Community Renaissance, we take a different approach than typical "We Buy Houses" companies:

We Are Truly Local

We live and work in Sacramento. We are not a national franchise sending leads to random investors. When you call us, you talk to our team.

We Actually Buy the Homes

We are not wholesalers. We purchase properties with our own funds, renovate them ourselves, and either sell or rent them. We take real ownership.

Transparent, No-Pressure Offers

We give you a written offer with no hidden fees. Take your time to decide. No pressure, no gimmicks.

We Give Back

For every home we purchase, we donate to local Sacramento schools. We believe in lifting up the community, not just profiting from it.

We Handle Everything

Probate complications? Title issues? Hoarder situations? We have seen it all and can navigate complex situations.

How to Vet a Cash Buyer

Before accepting any offer, do your homework:

1. Google the company name - Check for reviews, complaints, and news articles
2. Check the Better Business Bureau - Look for accreditation and complaint history
3. Verify the address - Is it a real office or a P.O. box?
4. Ask for references - Request contact info for recent sellers
5. Request proof of funds - Confirm they have the cash
6. Review the contract carefully - Watch for assignment clauses and hidden fees
7. Ask questions - A legitimate company welcomes your questions

The Bottom Line

"We Buy Houses" companies serve a real purpose: helping homeowners who need speed, certainty, and convenience over maximum price. For the right situation, selling to a cash buyer can be the smartest financial decision.

The key is choosing a reputable, transparent buyer who treats you fairly.

Get a No-Obligation Cash Offer from Community Renaissance

Frequently Asked Questions

Are "We Buy Houses" companies legitimate?

Many are legitimate businesses, but the industry does have bad actors. Look for companies with verifiable local addresses, online reviews, Better Business Bureau ratings, and transparent processes. Avoid anyone who pressures you or asks for upfront fees.

How do "We Buy Houses" companies make money?

These companies buy homes at a discount, then either renovate and resell (fix and flip) or rent them out. Their profit comes from the difference between their purchase price and the eventual resale or rental value.

Will I get a fair price from a cash home buyer?

Cash buyers typically offer 70-85% of after-repair market value. While lower than retail, this accounts for no realtor fees, no repairs, no closing costs, and immediate certainty. Run your own numbers to compare net proceeds.

What is the difference between a wholesaler and a cash buyer?

A true cash buyer (like Community Renaissance) actually purchases and owns the property. A wholesaler puts your home under contract, then sells that contract to another investor for a fee - they never intend to buy it themselves.

How is Community Renaissance different from other "We Buy Houses" companies?

We are a local Sacramento company (not a national franchise), we actually buy and renovate homes ourselves, we donate to local schools for every purchase, and we pride ourselves on transparent, no-pressure offers with no hidden fees.