5 Top We Buy Houses For Cash Companies in El Paso, TX
FAQs on El Paso house-buying companies
Are We Buy Houses for Cash companies legit or scams?
By and large, most We Buy Houses for Cash companies are legitimate businesses. Their services and transaction fees may differ, but the business model has been around for decades. If you use an established group with a track record, you can be fairly confident that it’s legitimate.
That said, as with any financial transaction, it’s a good idea to be on alert for scams. Always research companies before you sign a contract. Check customer reviews, look at their online presence, verify professional licenses, get a referral if possible, and vet the company on the Better Business Bureau website. Watch for anything that just doesn’t seem right.
How much will We Buy Houses for Cash companies in El Paso pay?
Most We Buy Houses for Cash companies apply the 70% rule, meaning they’ll offer you about 70% of your home’s after-repair value (AVR), minus their estimated repair costs.
Here’s an example of what a simplified formula might look like:
(Your home’s ARV x .70) – repair costs
To see how this might work in a real-world scenario, let’s take a look at an example offer equation. Let’s say your El Paso contemporary home could sell for
$270,000 after repairs, but it’s going to need $30,000 of work to get there.
($270,000 x .70) – $30,000 = $159,000
In this example, an El Paso We Buy Houses company might offer you about $159,000 for your home.
However, different types of house-buying companies will offer varying amounts for homes. As mentioned previously, iBuyers tend to pay more than We Buy Houses companies because iBuyers look for homes in better condition. An iBuyer might pay you 85%-95% of market value while charging a fee for their services.
How much does selling a home to a We Buy Houses for Cash company in El Paso cost?
When you accept an offer from a We Buy Houses for Cash company, you will likely be coming to grips with a two-edged sword. On one side, it shouldn’t cost you any additional money because these companies make an offer and handle almost everything once the offer is accepted. On the other side, you’ll likely get less money overall for your home.
Because We Buy Houses for Cash companies tend to focus on distressed homes, they typically have zero fees. Many will even cover your closing costs. In most cases, this means that the cash offer you receive is going to be the price you walk away with at the end of the deal. Of course, it’s always a good idea to ask the company if there are any hidden program fees that might affect your bottom line.
How do you sell a house for cash in El Paso?
- Research and vet the house-buying companies that serve your area. Our list above is a good place to start.
- Submit offer requests to a few of the companies you like best.
- Schedule any required on-site property visits.
- Compare offers. Weigh the pros and cons and choose the best option for you.
- Close the sale in a week to 30 days and get paid. (Some companies will let you choose a closing date up to 90 days after accepting the offer, which can be helpful when planning a move.)
We Buy Houses for Cash in El Paso vs. top El Paso agent
Another helpful exercise is to compare how a We Buy Houses for Cash company might stack up against working with a real estate agent. Let’s take a glance at how different aspects of the sale might look, and compare possible proceeds.
| Aspect of the sale | Sell to a We Buy Houses for Cash company in El Paso | Sell with a top Realtor in El Paso |
| Selling timeline | 7 to 30 days | 89 days average; 46 to attract an offer, 43 to close the loan |
| Home preparations | None | Make necessary repairs, deep clean, declutter, landscape, stage home |
| Showings | None | 10 to 25 showings average |
| Inspections / repairs | None | May need to make additional repairs for the buyer or renegotiate the price |
| Appraisal | None | May need to lower your asking price if the appraisal comes in low |
| Title search | Cash-for-homes companies often handle title issues | Must clear title before you can sell home |
| Financing contingency | None | Mortgaged buyers use a financing contingency that could hold up the deal if the buyer’s loan doesn’t clear |
| Agent commission | None | 3%–5.8% average |
| Closing costs | None | 1% to 3% of the home sale price on top of agent commission |
Example net proceeds
Below, we’ve put together one example of how net proceeds may differ between selling a home to a We Buy Houses for Cash company and an agent-assisted sale.
Let’s say your mid-century modern home in El Paso is currently worth about $240,000 and needs about $30,000 in repairs. Once the repairs are completed, the home might be worth around $270,000.
| Sell to a We Buy Houses for Cash company in El Paso | Sell with a top Realtor in El Paso | |
| Estimated sale price | ($270,000 x .70) – $30,000 = $159,000 | $240,000 |
| Market preparations | 0 | $2,400 (1% of sale price) |
| Agent commissions | 0 | $7,200 (3% of sale price) |
| Closing costs | 0 | $3,600 (1.5%) |
| Estimated take-home for seller | $159,000 | $226,800 |
The example above shows a 3% agent commission following the new commission rules that decoupled seller and buyer agent compensation effective August 2024. This means the buyer is now responsible for paying their own Realtor fees. However, many sellers are still offering to pay the buyer’s agent commission as an additional marketing tool. Even if you decide to shoulder this cost, which would be around 2.5% to 3%, the estimated take-home would still be higher than that of selling to a cash-buying company. This illustrates that, financially, it’s usually in your best interest to partner with an experienced real estate agent.
However, net proceeds are not the only consideration when selling a home. What’s best in your situation will depend on the condition of your property, what level of repairs are needed, and your selling objectives. It could be that selling on the open market will be a challenge in your area, or the agent timeline might not fit your immediate needs.
House-buying companies can be a good alternative for El Paso sellers in need of a quick home sale, but it’s important to consider both the benefits and drawbacks. When it comes to selling your home, it’s wise to avoid making any hasty decisions.
Before making a commitment to a cash-for-homes company, gather multiple offers and take the time to consider your options. Consider consulting with a top agent for expert insights on how soon, and for how much, your property might sell on the market. Whatever you decide, HomeLight would be happy to help with your real estate needs!
Writer Allison Bethell contributed to this post.
Editor’s note: This post is for educational purposes only, not legal or financial advice. Links and mentions of El Paso area “We Buy Houses” companies should not be considered endorsements.
Header Image Source: (Chris Carzoli / Unsplash)
